TY - GEN
T1 - Trading agent kills market information
T2 - 9th International Conference on Web and Internet Economics, WINE 2013
AU - Böhme, Rainer
AU - Grossklags, Jens
PY - 2013
Y1 - 2013
N2 - The proliferation of Internet technology has created numerous new markets as social coordination mechanisms, including those where human decision makers and computer algorithms interact. Because humans and computers differ in their capabilities to emit and process complex market signals, there is a need to understand the determinants of the provision of market information. We tackle the general research question from the perspective of new electronic credit markets. On online social lending platforms, loan applications typically contain detailed personal information of prospective borrowers next to hard facts, such as credit scores. We investigate whether a change of the market mechanism in the form of the introduction of an automated trading agent shifts the dynamics of information revelation from a high-effort norm to a low-effort information equilibrium. We test our hypothesis with a natural experiment on Smava.de and find strong support for our proposition.
AB - The proliferation of Internet technology has created numerous new markets as social coordination mechanisms, including those where human decision makers and computer algorithms interact. Because humans and computers differ in their capabilities to emit and process complex market signals, there is a need to understand the determinants of the provision of market information. We tackle the general research question from the perspective of new electronic credit markets. On online social lending platforms, loan applications typically contain detailed personal information of prospective borrowers next to hard facts, such as credit scores. We investigate whether a change of the market mechanism in the form of the introduction of an automated trading agent shifts the dynamics of information revelation from a high-effort norm to a low-effort information equilibrium. We test our hypothesis with a natural experiment on Smava.de and find strong support for our proposition.
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U2 - 10.1007/978-3-642-45046-4_7
DO - 10.1007/978-3-642-45046-4_7
M3 - Conference contribution
AN - SCOPUS:84893080595
SN - 9783642450457
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 68
EP - 81
BT - Web and Internet Economics - 9th International Conference, WINE 2013, Proceedings
Y2 - 11 December 2013 through 14 December 2013
ER -