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 …

We construct a model of bubbles where an asset can be used as collateral primarily due to higher-order uncertainty … fool” exists who will purchase it at a much higher price. We show that such bubbles can lead to inefficient overinvestment …

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

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

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

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