Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles.

@article{Smith2014IrrationalEA,
  title={Irrational exuberance and neural crash warning signals during endogenous experimental market bubbles.},
  author={Alec Smith and Terry M Lohrenz and Justin King and P. Read Montague and Colin F. Camerer},
  journal={Proceedings of the National Academy of Sciences of the United States of America},
  year={2014},
  volume={111 29},
  pages={10503-8}
}
Groups of humans routinely misassign value to complex future events, especially in settings involving the exchange of resources. If properly structured, experimental markets can act as excellent probes of human group-level valuation mechanisms during pathological overvaluations--price bubbles. The connection between the behavioral and neural underpinnings… CONTINUE READING