The effects of subject pool and design experience on rationality in experimental asset markets

@inproceedings{Ackert2001TheEO,
  title={The effects of subject pool and design experience on rationality in experimental asset markets},
  author={Lucy F. Ackert and Bryan K. Church},
  year={2001}
}
Empirical evidence suggests that prices do not always reflect fundamental values and individual behavior is often inconsistent with rational expectations theory. We report the results of fourteen experimental markets designed to examine whether the interactive effect of subject pool and design experience tempers price bubbles and improves forecasting ability. Our main findings are: (i) price run-ups are modest and dissipate quickly when traders are knowledgeable about financial markets and have… CONTINUE READING