Bubbles and Crashes in Experimental Asset Markets

Business & Finance, Economics, Microeconomics, Macroeconomics
Cover of the book Bubbles and Crashes in Experimental Asset Markets by Stefan Palan, Springer Berlin Heidelberg
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Stefan Palan ISBN: 9783642021473
Publisher: Springer Berlin Heidelberg Publication: October 3, 2009
Imprint: Springer Language: English
Author: Stefan Palan
ISBN: 9783642021473
Publisher: Springer Berlin Heidelberg
Publication: October 3, 2009
Imprint: Springer
Language: English

This book describes a laboratory experiment designed to test the causes and properties of bubbles in financial markets and explores the question whether it is possible to design markets which avoid such bubbles and crashes. In the experiment, subjects were given the opportunity to trade in a stock market modeled after the seminal work of Smith et al. (1988). To account for the increasing importance of online betting sites, subjects were also allowed to trade in a digital option market. The outcomes shed new light on how subjects form and update their expectations, placing special emphasis on the bounded rationality of investors. Various analytical bubble measures found in the literature are collected, calculated, classified and presented for the first time. The very interesting new bubble measures "Dispersion Ratio", "Overpriced Transactions" and "Underpriced Transactions" are developed, making the book an important step towards the research goal of preventing bubbles and crashes in financial markets.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

This book describes a laboratory experiment designed to test the causes and properties of bubbles in financial markets and explores the question whether it is possible to design markets which avoid such bubbles and crashes. In the experiment, subjects were given the opportunity to trade in a stock market modeled after the seminal work of Smith et al. (1988). To account for the increasing importance of online betting sites, subjects were also allowed to trade in a digital option market. The outcomes shed new light on how subjects form and update their expectations, placing special emphasis on the bounded rationality of investors. Various analytical bubble measures found in the literature are collected, calculated, classified and presented for the first time. The very interesting new bubble measures "Dispersion Ratio", "Overpriced Transactions" and "Underpriced Transactions" are developed, making the book an important step towards the research goal of preventing bubbles and crashes in financial markets.

More books from Springer Berlin Heidelberg

Cover of the book Globalization by Stefan Palan
Cover of the book Mathematik für die berufliche Oberschule by Stefan Palan
Cover of the book Datenanalyse für Naturwissenschaftler und Ingenieure by Stefan Palan
Cover of the book Intradermal Immunization by Stefan Palan
Cover of the book Radiale Kreiselpumpen by Stefan Palan
Cover of the book Biophysics by Stefan Palan
Cover of the book Isotope-Based Quantum Information by Stefan Palan
Cover of the book Industrielle Produkt-Service Systeme by Stefan Palan
Cover of the book Atlas of Inflammatory Bowel Diseases by Stefan Palan
Cover of the book Optimization of Temporal Networks under Uncertainty by Stefan Palan
Cover of the book Traffic Networks as Information Systems by Stefan Palan
Cover of the book Engineering Risks by Stefan Palan
Cover of the book Anaesthesia Equipment by Stefan Palan
Cover of the book ESSKA Instructional Course Lecture Book by Stefan Palan
Cover of the book Orthogonal Supramolecular Interaction Motifs for Functional Monolayer Architectures by Stefan Palan
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy