EconPapers    
Economics at your fingertips  
 

Bubbles and financial professionals

Utz Weitzel, Christoph Huber (), Florian Lindner (), Jürgen Huber (), Julia Rose () and Michael Kirchler ()

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: The efficiency of financial markets and their potential to produce bubbles are central topics in academic and professional debates. Yet, surprisingly little is known about the contribution of financial professionals to price efficiency. To close this gap, we run 86 experimental markets with 294 professionals and 384 students. We report that professional markets with bubble-drivers-capital inflows or high initial capital supply-are susceptible to bubbles, but they are significantly more efficient than student markets. In a survey with 245 professionals and students we show that cognitive skills and risk attitudes do not explain subject pool differences in bubble formation.

Keywords: Experimental finance; financial professionals; price efficiency; financial bubbles (search for similar items in EconPapers)
JEL-codes: C92 D84 G02 G14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-exp
Date: 2018-03, Revised 2018-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www2.uibk.ac.at/downloads/c4041030/wpaper/2018-04.pdf (application/pdf)

Related works:
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:inn:wpaper:2018-04

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Statistics, University of Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Janette Walde ().

 
Page updated 2019-02-18
Handle: RePEc:inn:wpaper:2018-04