We designed a natural-field experiment in the context of local public transportation to test whether rewards in the …

Bubbles in asset markets have been documented in numerous experimental studies. However, all experiments in which … bubbles occur pay dividends after each trading day. In this paper we study whether bubbles can occur in markets without … may have inside information, and (2) the option to communicate with other traders. We find that bubbles can indeed occur …

either liable for losses or not, and when their bonuses are either capped or not. Limited liability introduces a conflict of … limited liability investors contribute to asset price bubbles by increasing liquidity provision and that caps fail to tame … bubbles. Overall, giving investors skin in the game fosters financial stability. …

experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring … bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon) …

experiment, in which we vary the length of the horizon and whether the end time is definite or indefinite. We find very similar … price dynamics with recurring bubbles in all treatments …

' behavior to that of undergraduate students, the typical experimental subject pool. In our first experiment, both sets of … not generate the price bubbles observed in previous studies with student subjects; traders aggregate private information …