BUBBLES, CRASHES, AND ENDOGENOUS UNCERTAINTY IN LINKED ASSET AND PRODUCT MARKETS* Journal Article uri icon

Overview

abstract

  • In laboratory asset markets, subjects trade shares of a firm whose profits in a linked product market determine dividends. Treatments vary whether dividend information is revealed once per period or in real time and whether the firm is controlled by a profit‐maximizing robot or human subject. The latter variation induces uncertainty about firm behavior, bridging the gap between laboratory and field markets. Our data replicate well‐known features of laboratory asset markets (e.g., bubbles), suggesting these are robust to a market‐based dividend process. Compared to a sample of previous experiments, both real‐time information revelation and endogenous uncertainty impede the bubble‐mitigating impact of experience.

publication date

  • February 1, 2016

has restriction

  • closed

Date in CU Experts

  • August 30, 2017 4:02 AM

Full Author List

  • Jaworski T; Kimbrough EO

author count

  • 2

Other Profiles

International Standard Serial Number (ISSN)

  • 0020-6598

Electronic International Standard Serial Number (EISSN)

  • 1468-2354

Additional Document Info

start page

  • 155

end page

  • 176

volume

  • 57

issue

  • 1