Lei, Vivian; Vesely, Filip - In: Pacific Economic Review 14 (2009) 2, pp. 246-258
We report the results of an experiment that demonstrates that market experience is not necessary to eliminate bubbles in the type of asset markets studied in <link rid="b1">Smith et al. (1988) </link>. We introduce a pre-market phase in which subjects experience a dividend flow themselves by literally observing and...