Bubbles and Experience: An Experiment
AbstractWe investigate the occurrence of bubble-crash pricing patterns in laboratory financial markets with a mixture of experienced and inexperienced traders. We find that even with a minority of experienced traders, bubbles are substantially abated.
CitationDufwenberg, Martin, Tobias Lindqvist, and Evan Moore. 2005. "Bubbles and Experience: An Experiment." American Economic Review, 95 (5): 1731-1737. DOI: 10.1257/000282805775014362
- G10 General Financial Markets: General (includes Measurement and Data)