Open AccessBubbles and Experience: An Experiment
Author(s) -
Martin Dufwenberg,
Tobias Lindqvist,
Evan Moore
Publication year - 2005
Publication title -
american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.936
H-Index - 297
eISSN - 1944-7981
pISSN - 0002-8282
DOI - 10.1257/000282805775014362
Subject(s) - economics , crash , economic bubble , bubble , financial economics , monetary economics , econometrics , mechanics , physics , computer science , programming language
We 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.
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