bubbles in classical asset market experiments. Our setup is more realistic as it offers multiple securities that are … its rationality can be evaluated. Quick consensus emerges early yielding pronounced market bubbles. The overpricing …

bubbles. We consider a setting where participants sorted according to their degree of risk aversion trade in experimental … asset markets. We show that risk sorting is able to explain bubbles partially: Markets with the most risk-tolerant traders … exhibit larger bubbles than markets with the most risk averse traders. In our study risk aversion does not correlate with …

the existence of equilibria with risky speculative bubbles. Income concentration among top earners leads to excess savings … and depressed interest rates, which facilitate the emergence of risky bubbles and increase their equilibrium size. In this … and size of bubbles …