Based on the pioneering work of Smith, Suchanek, & Williams (1988) experimental researchers have concluded that assets markets are prone to bubbles and crashes in experimental settings. Numerous authors employing the SSW framework have incorporated features designed to reduce or eliminate the...

The paper investigates the effect of interest policy on price bubbles, trading behavior and portfolio choice in experimental stock markets. A series of experiments has 8 participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds....