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Finance
Experimental
Finance
Experimental
finance looks to establish different market settings and environments in
order to observe experimentally and analyze agent behavior and the results
of trading flows, information diffusion and aggression, price setting
mechanisms and return processes. This is often seen in trading simulations
or through establishing and studying the behavior of people in an
artificial competitive market setting.
Experimental finance researches study to what extent
existing financial economics theory makes valid predictions. They look to
discover new principals and additions to current theory.
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