We use experimental evidence from a complex trading environment to evaluate the rational expectations theory of information acquisition in an asset market. Although theoretical predictions correctly identify the main drivers of information acquisition in our experimental data, we observe much...

Theoretical results from previous work, presented in Kool, Middeldorp and Rosenkranz (2007), suggest that central bank communication crowds out private information acquisition and that this effect can lead to a deterioration of the ability of financial markets to predict future policy interest...