The Role of the End Time in Experimental Asset Markets

Anita Kopányi-Peuker and Matthias Weber

No 22-32, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: By now there are hundreds of scientific articles on experimental asset markets. Almost all of these experiments use a short and definite horizon. This may be one of the starkest differences to financial asset markets outside the laboratory, which usually have indefinite and comparatively long horizons. We analyze the role of the end time in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon).

Keywords: Experimental finance; asset market experiments; time horizon; indefinite end time; bubbles (search for similar items in EconPapers)
JEL-codes: C92 D90 G40 G41 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2022-04
New Economics Papers: this item is included in nep-exp
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2232

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