Market behavior in the presence of costly, imperfect information: experimental evidence

An analysis of the value of imperfect information on prices reveals that market prices are consistent with the Bayesian rule in 7 out of 12 cases and that the information is at least partly disseminated. Furthermore, the study reveals that imperfect information is given value by traders but to a lesser degree than the upper bound of information value thus providing evidence that the value of information is kept at reasonable price.