Daniel Friedman

Papers

Total Citations

244

H-Index

About

Daniel Friedman is a leading experimental economist whose work bridges market design, search theory, and behavioral finance. His foundational research on price formation in single call markets (127 citations) demonstrated how controlled laboratory experiments can validate Bayesian Nash equilibrium predictions, establishing a methodological benchmark for studying trading institutions. Friedman’s influential studies on buyer search and price dispersion (104 citations) and customer search and market power revealed how costly information acquisition shapes market outcomes, showing that even limited search costs can sustain significant price dispersion and seller market power. In a novel fusion of human and artificial intelligence, his work on crash-prone financial markets (4 citations) introduced human traders into agent-based simulations, uncovering that inexperienced humans paradoxically stabilize markets during crashes while robots outperform in normal times. A pioneer in experimental economics, Friedman’s research has profoundly influenced how scholars understand market microstructure, search behavior, and the interplay between human cognition and algorithmic trading. His contributions continue to inform both theoretical models and practical market design, making him a key figure in the evolution of modern experimental economics.