Bubbles in asset markets have been documented in numerous experimental studies. However, all experiments in which … bubbles occur pay dividends after each trading day. In this paper we study whether bubbles can occur in markets without … may have inside information, and (2) the option to communicate with other traders. We find that bubbles can indeed occur …

expected value of a finite stream of dividend payments. This setup implies a deterministically falling fundamental value with a … predetermined end of the life-span of the asset and extremely high dividend-payouts. We present a new market model in which we … more efficient and end-of-experiment imbalances common in SSW-markets are not observed. Our results demonstrate, that …

experiment that regularly produces valuation bubble and crash events. Global sessions involved real time trades between subjects … asset market bubbles occur in all sessions, but global markets had significantly more extreme and longer duration valuation … bubbles. Additionally, subjects at the most suboptimal times-of-day held significantly more asset shares in their portfolios …

-Fuller test reveals existence of periodically collapsing bubbles in S&P 500 data during the late 1990s. …

speculative bubbles and/or noise trading behavior. Our empirical findings for the US stock market covering the 1871:1 - 2000 …

dividend stream is modeled as a random walk with innovations drawn from the family of stable distributions. We derive an exact …-driven intrinsic bubbles to explain the observed variation in annual U.S. stock prices. We compare results obtained in this setting …

We extend the constant discount factor model with intrinsic bubbles developed in Froot and Obstfeld (1991) to account … for serial correlation in dividend growth rates. We derive an exact analytical expression for both the present value stock … price and an intrinsic bubble component when dividend growth rates evolve as a Gaussian first-order autoregressive process …

-Fuller test reveals existence of periodically collapsing bubbles in S&P 500 data during the late 1990s …

A nonstationary dividend yield, having a unit root, is seen as proof of bubbles (Craine 1993). This inference is not … equilibrium dividend yield is a random walk without a deterministic trend or drift, but bubbles are still absent … valid. A sufficient condition for the absence, respectively presence of bubbles is the uniform divergence, respectively …

Asset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to …