Verhaltensökonomisches Seminar

Arbitrage bots in experimental asset markets

04 Jun 2018

In laboratory markets arbitrage opportunities seem to persist even with experienced traders.  We investigate the impact of liquidity absorbing and liquidity providing trading algorithms on market liquidity, volatility and mispricing. We find that trading algorithms generally enhance market quality. Fast trading algorithms skim laboratory investors more than slow ones

Erich-Schneider-Seminar