This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. December 2005
  5. Bubbles and Experience: An Experiment

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Bubbles and Experience: An Experiment

  • Martin Dufwenberg
  • Tobias Lindqvist
  • Evan Moore
American Economic Review
vol. 95, no. 5, December 2005
(pp. 1731–1737)
Download Full Text PDF

Abstract

We investigate the occurrence of bubble-crash pricing patterns in laboratory financial markets with a mixture of experienced and inexperienced traders. We find that even with a minority of experienced traders, bubbles are substantially abated.

Citation

Dufwenberg, Martin, Tobias Lindqvist, and Evan Moore. 2005. "Bubbles and Experience: An Experiment." American Economic Review, 95 (5): 1731–1737. DOI: 10.1257/000282805775014362

Additional Materials

JEL Classification

  • G10 General Financial Markets: General (includes Measurement and Data)