Sunspots in the Laboratory

S-Tier
Journal: American Economic Review
Year: 2005
Volume: 95
Issue: 3
Pages: 510-529

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that extrinsic or nonfundamental uncertainty influences markets in a controlled environment. This work provides the first direct evidence of sunspot equilibria. These equilibria require a common understanding of the semantics of the sunspot variable, and they appear to be sensitive to the flow of information. Sunspots always occur in a closed-book call market, but they happen only occasionally in a double auction, where inframarginal bids and offers are observable.

Technical Details

RePEc Handle
repec:aea:aecrev:v:95:y:2005:i:3:p:510-529
Journal Field
General
Author Count
2
Added to Database
2026-01-25