Speculative Bubbles - An introduction and application of the Speculation Elicitation Task (SET)

Dirk-Jan Janssen, Utz Weitzel and Sascha Füllbrunn ()

MPRA Paper from University Library of Munich, Germany

Abstract: We introduce the speculation elicitation task (SET) to measure speculative tendencies of individuals. The resulting SET-score allows us to investigate the role of individual speculative behavior on experimental asset market bubbles. The experimental results show that overpricing in asset markets composed of subjects with a high propensity to speculate (high SET-score) is significantly higher than in markets composed of subjects with a low propensity to speculate (low SET-score). We conclude that speculative tendencies are an important driver of price bubbles in experimental asset markets.

Keywords: Speculation; Experimental Asset Markets; Finance (search for similar items in EconPapers)
JEL-codes: C90 D40 D84 G10 (search for similar items in EconPapers)
Date: 2015-03-07
New Economics Papers: this item is included in nep-exp
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:63028

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