Bubbles and experience: An experiment with a steady inflow of new traders

Huan Xie and Jipeng Zhang

Southern Economic Journal, 2016, vol. 82, issue 4, 1349-1373

Abstract: We revisit the effect of traders' experience on price bubbles by introducing either one‐third or two‐thirds steady inflow of new traders in each of four consecutive experimental asset markets. We find that bubbles are still reduced in the treatments with a steady inflow of new traders, but at a slower pace compared to the baseline treatment in which new traders are only introduced in the last market. Our analysis of individual trading behavior shows that the slower abatement of bubbles in the inflow treatments can be attributed mainly to the inexperienced traders who make more mistakes than experienced traders.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/soej.12120

Related works:
Working Paper: Bubbles and Experience: An Experiment with a Steady Inflow of New Traders (2012)
Working Paper: Bubbles and Experience: An Experiment with a Steady Inflow of New Traders (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:82:y:2016:i:4:p:1349-1373

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().