Experimental Economics (How to Build a Perfect Financial Market)

Author: (American) Miller, translated by Yu Ze and Li Bin
Publisher:
Publish Date: 2006-08-01
Features: This book explores the unfinished business of capitalism. As one country after another replaces central planning with the market, Wall Street continues to experience periods of prosperity and a series of painful, even desperate, events. Traditional financial and economic analysis rarely offers comfort to investors, whose irrationality is often blamed as scapegoats for market problems. Miller details the experimental economics research he participated in. This is a new field that examines the interaction between markets and human behavior under controlled conditions. Experimental economics has already demonstrated its ability to replicate the formation and collapse of stock market bubbles in laboratories around the world. When human psychology can become a factor in explaining market issues, experimenters find that even slight changes in the rules governing the market can lead to vastly different outcomes. A natural byproduct of experimental economics is the creation of "smart markets" to overcome market flaws. Miller explains the reasons behind the alternating booms and busts in financial markets and makes bold predictions about their future trajectory. Whether you want to better manage your investment portfolio or gain insights into the inner workings of financial markets, reading this book will broaden your perspective and help you understand the mechanisms of Wall Street and the global economy.