Hommes, Cars; Sonnemans, Joep; Tuinstra, Jan; Velden, … - In: Review of Financial Studies 18 (2005) 3, pp. 955-980
We investigate expectation formation in a controlled experimental environment. Subjects are asked to predict the price in a standard asset pricing model. They do not have knowledge of the underlying market equilibrium equations, but they know all past realized prices and their own predictions....