Title :
Software agents and market (in) efficiency: a human trader experiment
Author :
Grossklags, Jens ; Schmidt, Carsten
Author_Institution :
Sch. of Inf. Manage., Univ. of California, Berkeley, CA
Abstract :
This paper studies how software agents influence the market behavior of human traders. Software agents with a passive arbitrage-seeking strategy are introduced in a double auction market experiment with human subjects in the laboratory. As a treatment variable, the influence of information on the existence of software agents is investigated. We found that common knowledge about the presence of software agents triggers more efficient market prices when the programmed strategy was employed, whereas an effect of the information condition on behavioral variables could not be observed. When controlling for information on software agents´ participation, the introduction of software agents results in lower market efficiency
Keywords :
electronic trading; marketing data processing; software agents; double auction market; electronic market; human trader; market price; software agent; Application software; Consumer electronics; Delay; Electric variables control; Environmental economics; Graphical user interfaces; Humans; Laboratories; Software agents; Software systems; Artificial trading agent and human traders; double auction; electronic market; experimental economics;
Journal_Title :
Systems, Man, and Cybernetics, Part C: Applications and Reviews, IEEE Transactions on
DOI :
10.1109/TSMCC.2005.860575
