Bubbles, crashes and information contagion in large-group asset market experiments
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DOI: 10.1007/s10683-020-09664-w
Abstract: 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… read more here.
Keywords: bubbles crashes; asset; information contagion; group ... See more keywords
Price discovery in the small and in the large: Momentum and reversal, bubbles, and crashes
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DOI: 10.1016/j.finmar.2019.08.001
Abstract: Abstract Using a discrete-time asset-pricing model, I specify the economic rationale for a rich array of price dynamics. Two boundedly-rational investors with different risk preferences trade periodically, where excess supply is cleared by a tâtonnement… read more here.
Keywords: momentum reversal; bubbles crashes; price discovery; price ... See more keywords