Publication detail

Market Prices as Indicators of Political Events: Evidence from the Experimental Market on the Czech Republic Parliamentary Election in 2002

Author(s): doc. Ing. Tomáš Cahlík CSc., Berlemann Michael
doc. PhDr. Adam Geršl Ph.D., Berlemann Michael
PhDr. Michal Hlaváček Ph.D., Berlemann Michael
Type: IES Working Papers
Year: 2005
Number: 77
ISSN / ISBN:
Published in: IES WP 2005/77
Publishing place: Prague
Keywords: Experimental economics, political stock markets, predictions
JEL codes: C900, D800, G140
Suggested Citation:
Abstract: According to efficient markets theory, the stock price on a competitive market is the best estimate of the stock’s present value. This is the basic assumption for predictions using experimental markets. The first part of the paper describes the features of such an experimental market, discusses shortly its advantages in providing predictions as compared to traditional opinion polls and identifies some assumptions that can influence its efficiency and predictive accuracy. The second part of the paper is then devoted to the results of the first experimental market organized in the Czech Republic, the political stock market on the Czech parliamentary elections into the Chamber of Deputies in June 2002.
Downloadable: WP 77 - Cahlik Gersl

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance