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 Amerika, Land der unbegrenzten gendiagnostischen Möglichkeiten? by Stefan Palan
Cover of the book Probiotics by Stefan Palan
Cover of the book Immunological Aspects of Liver Disease by Stefan Palan
Cover of the book It’s Broken, Let’s Fix It by Stefan Palan
Cover of the book Some Current Concepts of Synaptic Organization by Stefan Palan
Cover of the book Transgenic Crop Plants by Stefan Palan
Cover of the book River, Coastal and Estuarine Morphodynamics by Stefan Palan
Cover of the book Interactive LISREL in Practice by Stefan Palan
Cover of the book The Cerebral Perivascular Cells by Stefan Palan
Cover of the book Doing Business in India by Stefan Palan
Cover of the book Epidemiology of Prostate Disease by Stefan Palan
Cover of the book Plastische Chirurgie – Ästhetik Ethik Geschichte by Stefan Palan
Cover of the book Lymphocytes, Macrophages, and Cancer by Stefan Palan
Cover of the book Public-Key Cryptography – PKC 2016 by Stefan Palan
Cover of the book Engineering Secure Two-Party Computation Protocols 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