We consider the relationship between the emotional state of traders and market prices. We create asset markets with the structure first studied by Smith, Suchanek and Williams (1988), which is known to generate price bubbles and crashes. We analyze participants' facial expressions with...

Evolutionary explanations of anger as a commitment device hinge on two key assumptions. The first is that it is predictable, ex-ante, whether someone will get angry when feeling that they have been badly treated. The second is that anger is associated with destructive behavior. We test the...