The role of the end time in experimental asset markets

Anita Kopányi-Peuker and Matthias Weber

Journal of Corporate Finance, 2024, vol. 88, issue C

Abstract: There are hundreds of scientific articles on experimental asset markets. Almost all of them use a short and definite horizon. This may be one of the starkest differences between experimental settings and real-world financial markets, which usually have indefinite and comparatively long horizons. We analyze the implications of different end time assumptions in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find very similar price dynamics with recurring bubbles in all treatments.

Keywords: Experimental finance; Asset market experiments; Time horizon; Indefinite end time; Bubbles (search for similar items in EconPapers)
JEL-codes: C92 D90 G40 G41 (search for similar items in EconPapers)
Date: 2024
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Working Paper: The Role of the End Time in Experimental Asset Markets (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:88:y:2024:i:c:s0929119924001093

DOI: 10.1016/j.jcorpfin.2024.102647

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