Bubbles and Experience: An Experiment with a Steady Inflow of New Traders

Huan Xie and Jipeng Zhang ()
Additional contact information
Jipeng Zhang: Nanyang Technological University

No 12001, Working Papers from Concordia University, Department of Economics

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 the repeated experimental asset markets. We find that bubbles are not significantly abated by the third repetition of the market with the inflow of new traders. The relative importance of experience to the formation of bubbles depends on the proportion of new traders in the market. Our findings identify a market environment where increased experience is not sufficient to eliminate price bubbles.

Keywords: Bubbles; Asset Markets; Experience; Inflow of Traders (search for similar items in EconPapers)
JEL-codes: C91 D83 G12 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-01
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 (11)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Bubbles and experience: An experiment with a steady inflow of new traders (2016)
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:crd:wpaper:12001

Access Statistics for this paper

More papers in Working Papers from Concordia University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Economics Department ().