BUBBLES, CRASHES, AND ENDOGENOUS UNCERTAINTY IN LINKED ASSET AND PRODUCT MARKETS*

B-Tier
Journal: International Economic Review
Year: 2016
Volume: 57
Issue: 1
Pages: 155-176

Authors (2)

Taylor Jaworski (not in RePEc) Erik O. Kimbrough (Chapman University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In laboratory asset markets, subjects trade shares of a firm whose profits in a linked product market determine dividends. Treatments vary whether dividend information is revealed once per period or in real time and whether the firm is controlled by a profit‐maximizing robot or human subject. The latter variation induces uncertainty about firm behavior, bridging the gap between laboratory and field markets. Our data replicate well‐known features of laboratory asset markets (e.g., bubbles), suggesting these are robust to a market‐based dividend process. Compared to a sample of previous experiments, both real‐time information revelation and endogenous uncertainty impede the bubble‐mitigating impact of experience.

Technical Details

RePEc Handle
repec:wly:iecrev:v:57:y:2016:i:1:p:155-176
Journal Field
General
Author Count
2
Added to Database
2026-01-25