Thar She Blows : Can Bubbles Be Rekindled with Experienced Subjects ?

We report 28 new experiment sessions consisting of up to three experience levels to examine the robustness of learning and ‘error’ elim ination by participants in a laboratory asset market and its effect on price bubbles. Our answer to the title question is: “yes.” We impose a large increase in liquidity and dividen u certainty to shock the environment of… CONTINUE READING