Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

IMPACT FACTOR increased in 2015: 0.412
5-year IMPACT FACTOR: 0.471

SCImago Journal Rank (SJR) 2015: 0.458
Source Normalized Impact per Paper (SNIP) 2015: 0.553
Impact per Publication (IPP) 2015: 0.329

Mathematical Citation Quotient (MCQ) 2015: 0.16

See all formats and pricing


30,00 € / $42.00 / £23.00

Get Access to Full Text

No-Trade in the Laboratory

Marco Angrisani1 / Antonio Guarino2 / Steffen Huck3 / Nathan C Larson4

1RAND Corporation,

2University College London,

3University College London,

4University of Virginia,

Citation Information: The B.E. Journal of Theoretical Economics. Volume 11, Issue 1, ISSN (Online) 1935-1704, DOI: 10.2202/1935-1704.1745, April 2011

Publication History

Published Online:

We construct laboratory financial markets in which subjects can trade an asset whose value is unknown. Subjects receive private clues about the asset value and then set bid and ask prices at which they are willing to buy or to sell from the other participants. In some of our markets (experimental treatments), there are gains from trade, while in others there are no gains: trade is zero sum. Celebrated no-trade theorems state that differences in private information alone cannot explain trade in the zero sum case. We study whether purely informational trade is eliminated in our experimental markets with no gains. The comparison of our results for gains and no-gains treatments shows that subjects fail to reach the no-trade outcome by pure introspection, but they approach it over time through market feedback and learning. Furthermore, the less noisy the clue-asset relationship is, the closer trade comes to being eliminated entirely.

Keywords: no-trade theorem; laboratory experiment

Comments (0)

Please log in or register to comment.