We assess the effects of a stake size variation on experimental asset markets. Our results show that a fivefold increase in stake size leads to higher trading frequencies. Mispricing and overpricing, however, are not fundamentally different for different stake sizes.
- experimental finance
Kocher, M. G., Martinsson, P., & Schindler, D. (2017). Overpricing and stake size: On the robustness of results from experimental asset markets. Economics Letters, 154, 104-104. https://doi.org/10.1016/j.econlet.2017.02.035