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We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show … significantly reduce bubbles in laboratory asset markets. If no FV-anchor is set, bubble-crash patterns emerge. Our results indicate … that bubbles in laboratory environments are primarily sparked in the first period. If prices are initiated around the FV …
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experiment, in which we vary the length of the horizon and whether the end time is definite or indefinite. We find very similar … price dynamics with recurring bubbles in all treatments …
Persistent link: https://www.econbiz.de/10013192083
We investigate the relationship between anchoring and the emergence of bubbles in experimental asset markets. We show … significantly reduce bubbles in laboratory asset markets. If no FV-anchor is set, bubble-crash patterns emerge. Our results indicate … that bubbles in laboratory environments are primarily sparked in the first period. If prices are initiated around the FV …
Persistent link: https://www.econbiz.de/10010365125
Asset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to …
Persistent link: https://www.econbiz.de/10011870688
Mispricing (the difference between prices and their underlying fundamental values) is an important characteristic of markets. The literature on the topic consists of many different measures. This state of affairs is unsatisfactory, since it is not clear to which extent results are sensitive to...
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experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring … bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon) …
Persistent link: https://www.econbiz.de/10012609733