Are You Experienced?

Jason Shachat and Hang Wang

MPRA Paper from University Library of Munich, Germany

Abstract: We evaluate how traders' asset market activities are distributed in time impacts pricing efficiency, volume, and individual portfolio holdings. Through the first controlled experiment on such timing, we find that cohorts who participate in a sequence of three markets in a single experimental session generate more mispricing and bubbles - but the same trade volume and variability in portfolio values - than cohorts whose three markets are spaced a week apart. We further find that experience gained through spaced repetitions, as opposed to massed repetitions, leads to smaller price bubbles when subjects are recruited to a new cohort and participate in a market for a different asset.

Keywords: Spacing effects; learning; asset market; bubble; laboratory experiment (search for similar items in EconPapers)
JEL-codes: C92 D03 G12 (search for similar items in EconPapers)
Date: 2014-06-29
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 (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57672

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