Cross−impact and price bubbles in hybrid financial markets

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2025
Volume: 118
Issue: C

Authors (4)

Chapkovski, Philipp (not in RePEc) Cordoni, Francesco (not in RePEc) Giannetti, Caterina (Università degli Studi di Pisa) Lillo, Fabrizio (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

We explore cross-impact in a hybrid experimental market with human and artificial agents, varying liquidity across treatments. In treatment Separated participants hold distinct portfolios for two stocks, while in Integrated they hold a unique portfolio, i.e., can freely move capital between assets. Larger bubbles and asymmetric cross-market impact occur with unique portfolios and decreasing value asset. When comparing experimental and synthetic data, cross-impact is attributed to human players, especially when stock values are close to each other. Artificial players also react to human presence, contributing to cross-impact.

Technical Details

RePEc Handle
repec:eee:soceco:v:118:y:2025:i:c:s2214804325000643
Journal Field
Experimental
Author Count
4
Added to Database
2026-01-25