Experimental Economics and Game Theory Seminar for November 29

Events, Seminars | November 15, 2018

Join us for the ICES Seminar in Experimental Economics and Game Theory of the Fall 2018 semester, featuring Lucas Siga.

Prof. Siga, of New York University Abu Dhabi, will discuss his paper Information Aggregation in Large Markets (Abstract). The talk will take place on Thursday, November 29th, from 10:00 to 11:00am in room 5075 of Vernon Smith Hall (formerly Metropolitan Building), Arlington campus.
Visit the Seminar schedule to access the paper and to learn more about upcoming speakers.

Abstract

This paper studies when equilibrium prices can aggregate information in a large market. We consider an auction trading mechanism, where a large population of buyers and sellers receive
private signals about the common value of an asset. Our main result identifies a property of information—the betweenness property— that is both necessary and sufficient for aggregation. The characterization allows us to make predictions about equilibrium prices in complex information environments. As an application, we consider a multidimensional environment where the value of the asset depends on multiple inputs but signals are input specific. Information in the market is highly fragmented, yet equilibrium prices can aggregate information generically.

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