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 …

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 …

, as it could strengthen existing financial bubbles, or even give rise to new ones …

We propose an extension of the class of rational expectations bubbles (REBs) to the more general rational beliefs … beliefs can thus account for speculative bubbles, without the need for irrational agents or limits to arbitrage. Many of the … shortcomings of REBs that make rational bubbles implausible can be overcome once we relax the ergodicity requirement. In particular …

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 …

markets, thereby benefiting traders. I test that assumption in markets that are prone to price bubbles. Market efficiency will … form price bubbles. Traders buy and sell shares of an asset in a multiperiod, double auction market in which speculative …

expectations about their loan default probability. Agents select among heterogeneous expectation rules, based upon their relative … expectations amplify boom and bust cycles and how endogenous coordination on pessimistic expectations amplifies crises and slows …