Description
If security prices are fully revealing, then all public information should be reflected in prices, and unsophisticated
traders may be able to learn how various types of information affect security valuation by observing prices. A series of
laboratory asset markets was conducted to examine whether unsophisticated traders are able to learn to evaluate
publicly released information by trading with and observing trades made by a sophisticated trader who knows the
valuation implications of the information.
doc_121616796.pdf
If security prices are fully revealing, then all public information should be reflected in prices, and unsophisticated
traders may be able to learn how various types of information affect security valuation by observing prices. A series of
laboratory asset markets was conducted to examine whether unsophisticated traders are able to learn to evaluate
publicly released information by trading with and observing trades made by a sophisticated trader who knows the
valuation implications of the information.
doc_121616796.pdf