Download or read book Price Manipulation in an Experimental Asset Market written by Helena Veiga and published by . This book was released on 2006 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bubbles and Crashes in Experimental Asset Markets written by Stefan Palan and published by Springer Science & Business Media. This book was released on 2009-10-03 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Price Fads in Experimental Asset Markets written by Jan Pieter Krahnen and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous research suggests that overpricing is a common phenomenon in experimental asset markets. We argue, however, that the experimental design, in particular the fundamental value which steadily declines in the course of the experiment, facilitates the emergence of overpricing. In our experiments a more quot;realisticquot; fundamental value process was employed. The results do not confirm the previous findings: positive and negative price deviations are equally likely and similar in magnitude. Mispricing seems to be more pronounced in call markets than in continuous auctions. Surprisingly, price and value expectations noted by experimental subjects do not help to explain the price deviations.
Download or read book Partial Revelation of Information in Experimental Asset Markets written by Daniel Friedman and published by . This book was released on 1988 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Immediate Disclosure Or Secrecy written by Lucy F. Ackert and published by . This book was released on 2001 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bubbles in Experimental Asset Markets written by Lucy F. Ackert and published by . This book was released on 2015 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The robustness of bubbles and crashes in markets for finitely lived assets is perplexing. This paper reports the results of experimental asset markets in which participants trade two assets. In some markets, price bubbles form. In these markets, traders will pay even higher prices for the asset with lottery characteristics, i.e., a claim on a large, unlikely payoff. However, institutional design has a significant impact on deviations in prices from fundamental values, particularly for an asset with lottery characteristics. Price run-ups and crashes are moderated when traders finance purchases of the assets themselves and are allowed to short sell.
Download or read book Price Formation and Trade in Experimental Asset Markets written by Christoph Brunner and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price Expectations in Experimental Asset Markets with Futures Contracting written by David P. Porter and published by . This book was released on 1992 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Experimental Finance written by Füllbrunn, Sascha and published by Edward Elgar Publishing. This book was released on 2022-10-13 with total page 451 pages. Available in PDF, EPUB and Kindle. Book excerpt: With an in-depth overview of the past, present and future of the field, The Handbook of Experimental Finance provides a comprehensive analysis of the current topics, methodologies, findings, and breakthroughs in research conducted with the help of experimental finance methodology. Leading experts suggest innovative ways of designing, implementing, analyzing, and interpreting finance experiments.
Download or read book Bubble Or No Bubble written by Michael Kirchler and published by . This book was released on 2009 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Experimental Asset Markets written by Owen Powell and published by . This book was released on 2015 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews new research on experimental asset markets, markets in which the value of the traded asset is homogeneous across all agents. Such markets have been shown to be prone to substantial mispricing, usually in the form of a bubble-and-crash pattern. This calls into question the efficiency of such markets. The studies reviewed consider how market efficiency is affected by the characteristics of traders (intelligence, knowledge, etc.), the properties of the traded asset (the time path of fundamental value, information provision, etc.), and the structure of the market (market interventions, compensation schemes, etc.). Finally, the paper summarizes with a discussion related to defining a unique measure of mispricing.
Download or read book Money Illusion and Nominal Inertia in Experimental Asset Markets written by Charles N. Noussair and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Anchoring and Manipulation in Speculative Markets written by Alasdair Brown and published by . This book was released on 2017 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: A common finding in laboratory studies is that subjects anchor on irrelevant initial cues when valuing assets. We run a field experiment to examine whether this heuristic can be exploited to manipulate prices in real markets. We provide early quotes in a series of horse race betting markets, and randomly vary whether these quotes are high or low. We find that subsequent prices are indeed distorted in the direction of our anchor, and that the effect spills over into correlated markets. Furthermore, we show that there are positive returns to some market manipulation strategies predicated on exploiting the anchoring heuristic.
Download or read book Market Behavior in the Presence of Costly Imperfect Information written by Bryan K. Church and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We conduct 12 experimental asset markets to investigate the effects of imperfect, private information on market prices. We compute Bayesian predictions and examine whether market prices are consistent with such predictions. We also examine information dissemination and the value of imperfect information. We find some evidence that market prices are consistent with Bayes' rule. We also find that non-Bayesian prices are more likely to arise as the degree of uncertainty associated with private information increases. In addition, imperfect information is disseminated in our experimental markets. Lastly, our results suggest that traders perceive that imperfect information has value.
Download or read book Individual Speculative Behavior and Overpricing in Experimental Asset Markets written by Dirk-Jan Janssen and published by . This book was released on 2018 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: A rich history of theoretical models in finance shows that speculation can lead to overpricing and price bubbles. We provide evidence that, indeed, individual speculative behavior fuels overpricing in (experimental) asset markets. In a first step, we elicit individual speculative behavior in a one-shot setting with a novel Speculation Elicitation Task (SET). In a second step, we use this measure of speculative behavior to compose dynamic, continuous double auction markets in line with Smith, Suchanek, and Williams (1988). We find significant higher overpricing in markets with traders who exhibited more speculative behavior in the individual SET. However, we find no such differences in overpricing when we test for alternative explanations, using a market environment introduced by Lei, Noussair, and Plott (2001) where speculation is impossible. Taken together, our results corroborate the notion that speculation is an important factor in overpricing and bubble formation if market environments allow for the pursuit of capital gains.
Download or read book Overpricing Persistence in Experimental Asset Markets with Intrinsic Uncertainty written by Didier Sornette and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Asset Price Manipulation with Several Traders written by Ansgar Walther and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
