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