Bubbling with Excitement: An Experiment

B-Tier
Journal: Review of Finance
Year: 2016
Volume: 20
Issue: 2
Pages: 447-466

Authors (3)

Eduardo B. Andrade (not in RePEc) Terrance Odean (University of California-Berke...) Shengle Lin (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Anecdotal and indirect empirical evidence suggest that excitement and market bubbles are intertwined, such that excitement not only arises during bubbles but may also help fuel them. We directly test the impact of excitement on bubbles in a bubble-prone experimental asset-pricing market (Capinalp, Porter, and Smith, 2001). Prior to trading, participants are assigned to emotion inductions through video clips The results of fifty-five markets show larger asset pricing bubbles in magnitude and amplitude in the excitement treatment relative to a treatment of same valence and lower intensity (calm) and a treatment of similar intensity and opposite valence (fear).

Technical Details

RePEc Handle
repec:oup:revfin:v:20:y:2016:i:2:p:447-466.
Journal Field
Finance
Author Count
3
Added to Database
2026-01-26