We explore the effects of competitive incentives and of their time horizon on the evolution of both asset prices and …); ii) a short-term bonus treatment in which bonuses are assigned to the best performers at the end of each trading period …; iii) a long-term bonus treatment in which bonuses are assigned to the best performers at the end of the 15 periods of the …

either liable for losses or not, and when their bonuses are either capped or not. Limited liability introduces a conflict of … limited liability investors contribute to asset price bubbles by increasing liquidity provision and that caps fail to tame … bubbles. Overall, giving investors skin in the game fosters financial stability. …

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) …

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 …