Bubbles and Fools

Gadi Barlevy

Economic Perspectives, 2015, issue Q II

Abstract: This article reviews the literature on greater-fool theories of bubbles, which argue that bubbles can arise if traders are willing to buy assets they know to be overvalued because they hope to later sell them at a profit to others. The author discusses two approaches that attempt to model this phenomenon and what these approaches imply for economic policy.

Keywords: Bubbles; financial crisis (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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