Hommes, Cars; Sonnemans, Joep; Tuinstra, Jan; van de … - In: Journal of Economic Behavior & Organization 67 (2008) 1, pp. 116-133
We present results on expectation formation in a controlled experimental environment. In each period subjects are asked to predict the next price of a risky asset. The realized market price is derived from an unknown market equilibrium equation with feedback from individual forecasts. In most...