We study the emergence of bubbles in a laboratory experiment with large groups of individuals. The realized price is … the aggregation of the forecasts of a group of individuals, with positive expectations feedback through speculative demand … findings are: (i) large asset bubbles occur in large groups, (ii) information contagion through news affects behaviour and may …

We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to … forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants …". We observe both stable markets and large bubbles for both small and large markets. The data analysis shows no differences …

market using shocks to aggregate income, the distribution of income, credit conditions, and expectations of future housing …

We introduce a simple equilibrium model of a market for loans. Households lend to firms and form expectations about … their loan default probability. Under heterogeneous expectations, with switching between forecasting strategies driven by … expectations risk premium, i.e. significantly higher contract rates for loans and significantly lower output. Our stylized model …

expectations and planned behavior. Wealth shocks are associated with upward adjustments of expectations about retirement age … experimental evidence that beliefs about the duration of the stock market recovery shape households' expectations about their own …

expectations and planned behavior. Wealth shocks are associated with upward adjustments of expectations about retirement age … experimental evidence that beliefs about the duration of the stock market recovery shape households' expectations about their own …

Behavioral and experimental literature on financial instability focuses on either subjective price expectations …

? Our explanation combines rational expectations equilibrium and "lemons" models. When specialist (informed) market …