Abstract
Electronic markets are increasingly gaining importance in the coordination of complex allocation problems. One reason for market failure is the inherent complexity excluding non-sophisticated users. Recently researchers proposed the idea of hidden market design which merges the fields of market design with user interface design in order to make complex markets accessible to a broader audience. One way to accomplish that is to simplify the market interface. Thus far it remains empirically unclear how using such interfaces affects market efficiency and individual trading performance. In a prediction market for economic variables, traders can choose between a standard trading interface, and one that hides most market complexities. We find that market participants using a simplified trading -hidden market- interface are more likely to submit profitable orders.
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Teschner, F., Weinhardt, C. (2012). Evaluating Hidden Market Design. In: Coles, P., Das, S., Lahaie, S., Szymanski, B. (eds) Auctions, Market Mechanisms, and Their Applications. AMMA 2011. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 80. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30913-7_3
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DOI: https://doi.org/10.1007/978-3-642-30913-7_3
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