Nonspeculative Bubbles Revisited

Steven Tucker and Yilong Xu

Working Papers in Economics from University of Waikato

Abstract: In an important contribution, Lei et al. (2001, Econometrica) argue that speculation is not the driver of bubbles in the absence of common knowledge of rationality, suggesting a focus on mistakes and confusion. We revisit Lei et al.’s (2001) design, confirming the existence of bubbles. However, we argue that, although their design removes the ability to speculate, it introduces several unintended design artifacts, inducing bubbles.

Keywords: speculation; bubbles; cognitive ability; asset market experiment (search for similar items in EconPapers)
JEL-codes: C91 G13 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2024-01-03
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 (1)

Downloads: (external link)
https://repec.its.waikato.ac.nz/wai/econwp/2401.pdf (application/pdf)

Related works:
Journal Article: Nonspeculative bubbles revisited (2024)
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:wai:econwp:24/01

Access Statistics for this paper

More papers in Working Papers in Economics from University of Waikato Private Bag 3105, Hamilton, New Zealand, 3240. Contact information at EDIRC.
Bibliographic data for series maintained by Geua Boe-Gibson ().