Flat Bubbles in Long-Horizon Experiments: Results from two Market Conditions

Tomoe Hoshihata, Ryuichiro Ishikawa, Nobuyuki Hanaki and Eizo Akiyama
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Eizo Akiyama: University of Tsukuba, Japan

No 2017-32, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: We report the results of asset market experiments with a long horizon of 100 periods conducted under two market conditions: call markets and continuous double auctions. In both market formats, we observe flat bubbles, i.e., situations where market prices remain steady while fundamental values decrease as the experiments proceed, as well as multiple bubbles. We confirm the stylized facts found in short-horizon experimental asset markets such as bubble-crash price dynamics, and the similarity of the price dynamics between call markets and continuous double auctions. We also examine the relationship between individual trading performance and cognitive ability.

Keywords: Experimental asset markets; call markets; continuous double auctions; long horizon; multiple bubbles; cognitive reflection test (search for similar items in EconPapers)
JEL-codes: C90 D84 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2017-11
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2017-32

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