We construct a model for Bitcoin-like cryptocurrency as risky and costly bubbles in an infinite-horizon production … rational bubbles only when market distortion is severe and public sentiment is optimistic enough. On the one hand, bubbly … the data. Finally, the collapse of Bitcoin bubbles is shown to improve social welfare by decreasing distortion-driven real …

This paper examines how monetary expansion causes asset bubbles. When there is no monetary expansion, a bubbly asset is …

, recurring bubbles arise, where the price is 3 times larger than the fundamental value, which were not seen in former experiments. …

, recurring bubbles arise, where the price is 3 times larger than the fundamental value, which were not seen in former experiments …

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 …

This paper develops a finite-period model of rational bubbles where trade of an asset takes place through a chain of … reasonable assumptions, the equilibrium price is increasing and accelerating during bubbles although the fundamental value is … constant over time. Bubbles may be detrimental to the economy; however, bubble-bursting policies affect agents' beliefs and it …

We present a robust model of speculative bubbles by introducing loss-averse reference-dependent preferences by Koszegi … notion of bubbles to allow for the analysis in the case of a silent market with unobservable prices, and our model is able to … generate strong bubbles robust to moderate perturbations in parameters without the need for stronger conditions as suggested in …