Experimental Economics: How We Can Build Better Financial Markets

Praise for Experimental Economics

"The best account of all of the new developments [in economics] moves far beyond Peter Bernstein's two classic volumes, Capital Ideas and Against the Gods."
—David Warsh, Boston Globe

"This is a remarkable book that weaves the deep scientific roots of modern finance and modern financial institutions with humorous perspective and considerable wisdom. Few understand the pervasive and complex economic principles that govern our world of finance. Few are aware of the academic and scientific origins of financial practices and market instruments that are commonplace today. Ross Miller uses his experience and talents acquired as an experimental economist to help us understand a world that is contradictory, potentially dangerous, and paradoxical. He entertains us while doing it."
—Charles R. Plott, Edward S. Harkness Professor of Economics and Political Science, California Institute of Technology

"Dramatic new ways for buying and selling—spectrum auctions, e-commerce, derivatives—are the economics profession's contribution to the Information Revolution. This book explains how many of these innovations began with simple experiments at Caltech. The style is a refreshing combination—dramatic and fun to read, but also historically and scientifically accurate. So I can send one to my Dad, a salesman, and another to my girlfriend, a patent attorney."
—Colin Camerer, Rea and Lela Axline Professor of Business Economics, California Institute of Technology

"[Experimental Economics] is a provocative summary of recent decades of economic research. The investor who wants to know the theory behind the markets in which he trades, the economist who has been out of the academic mainstream for many years, and the interested general reader can spend many evenings mulling over the revolution in economics that has occurred since Smith's assumptions of market perfection were challenged. Mr. Miller makes mathematical finance relevant and sometimes even poignant. His book is a marvel of combining anecdote with theory all without so much as a single partial differential equation."
—Andrew Allentuck, Globe and Mail (Toronto)