Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets
Gerry L Suchanek and
Arlington Williams ()
Econometrica, 1988, vol. 56, issue 5, 1119-51
Spot asset trading is studied where the only external source of value is an independent draw from a common information dividend distribution at the end of each of fifteen trading periods. Fourteen of twenty-two experiments exhibit price bubbles. This tendency to bubble decreases with trader experience. The regression of changes in mean price on lagged excess bids (bids minus offers in the previous period) supports the hypothesis that the intercept is minus the one-period expected dividend value, and the slope is positive, where excess bids measures excess demand attributable to homegrown capital gains expectations. Copyright 1988 by The Econometric Society.
References: Add references at CitEc
Citations: View citations in EconPapers (446) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819880 ... O%3B2-3&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:56:y:1988:i:5:p:1119-51
Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues
Access Statistics for this article
Econometrica is currently edited by Daron Acemoglu
More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().