Bubbles and Crashes in Experimental Asset Markets
Bubbles and Crashes in Experimental Asset Markets

Author: Stefan Palan

Publisher: Springer

Published: 2010-02-04

Total Pages: 171

ISBN-13: 9783642021466

DOWNLOAD EBOOK

This book describes a laboratory experiment designed to test the causes and properties of bubbles in financial markets and explores the question whether it is possible to design markets which avoid such bubbles and crashes. In the experiment, subjects were given the opportunity to trade in a stock market modeled after the seminal work of Smith et al. (1988). To account for the increasing importance of online betting sites, subjects were also allowed to trade in a digital option market. The outcomes shed new light on how subjects form and update their expectations, placing special emphasis on the bounded rationality of investors. Various analytical bubble measures found in the literature are collected, calculated, classified and presented for the first time. The very interesting new bubble measures "Dispersion Ratio", "Overpriced Transactions" and "Underpriced Transactions" are developed, making the book an important step towards the research goal of preventing bubbles and crashes in financial markets.

Bubbles and Crashes in Experimental Asset Markets
Bubbles and Crashes in Experimental Asset Markets

Author: Stefan Palan

Publisher: Springer Science & Business Media

Published: 2009-10-03

Total Pages: 179

ISBN-13: 3642021476

DOWNLOAD EBOOK

This book describes a laboratory experiment designed to test the causes and properties of bubbles in financial markets and explores the question whether it is possible to design markets which avoid such bubbles and crashes. In the experiment, subjects were given the opportunity to trade in a stock market modeled after the seminal work of Smith et al. (1988). To account for the increasing importance of online betting sites, subjects were also allowed to trade in a digital option market. The outcomes shed new light on how subjects form and update their expectations, placing special emphasis on the bounded rationality of investors. Various analytical bubble measures found in the literature are collected, calculated, classified and presented for the first time. The very interesting new bubble measures "Dispersion Ratio", "Overpriced Transactions" and "Underpriced Transactions" are developed, making the book an important step towards the research goal of preventing bubbles and crashes in financial markets.

Nonlinear Dynamics and Evolutionary Economics
Nonlinear Dynamics and Evolutionary Economics

Author: Richard Hollis Day

Publisher: Oxford University Press, USA

Published: 1993

Total Pages: 360

ISBN-13:

DOWNLOAD EBOOK

Advances in physics, computers, and mathematics have made it possible to illustrate an astonishing array of potential behavior that can occur when nonlinear interactions are present. As Prigogine explains from a physicist's perspective, the fundamental role of instability and bounded rationality provide more precise understanding for evolution and changes. This volume considers these developments from various fields in the context of economic science. The work starts with a general non-mathematical discussion, introducing the major themes--nonlinearity, dynamical systems, and evolution in economic processes. The work continues with nonlinear analysis of macroeconomic growth and fluctuations. It describes analyses of economic adaptation, learning, and self-organization. The volume also scrutinizes a specific market--equities using nonlinear analysis, controlled experiments, and statistical inference when nonlinearity plays an essential role in data generation. The volume closes with an historical reflection by Richard Goodwin and a roundtable discussion on basic issues and new challenges in nonlinear economic dynamics.

Psychological Perspectives on Financial Decision Making
Psychological Perspectives on Financial Decision Making

Author: Tomasz Zaleskiewicz

Publisher: Springer Nature

Published: 2020-07-21

Total Pages: 367

ISBN-13: 3030455009

DOWNLOAD EBOOK

This book reviews the latest research from psychology, neuroscience, and behavioral economics evaluating how people make financial choices in real-life circumstances. The volume is divided into three sections investigating financial decision making at the level of the brain, the level of an individual decision maker, and the level of the society, concluding with a discussion of the implications for further research. Among the topics discussed: Neural and hormonal bases of financial decision making Personality, cognitive abilities, emotions, and financial decisions Aging and financial decision making Coping methods for making financial choices under uncertainty Stock market crashes and market bubbles Psychological perspectives on borrowing, paying taxes, gambling, and charitable giving Psychological Perspectives on Financial Decision Making is a useful reference for researchers both in and outside of psychology, including decision-making experts, consumer psychologists, and behavioral economists.

Asset Pricing Under Asymmetric Information
Asset Pricing Under Asymmetric Information

Author: Markus Konrad Brunnermeier

Publisher: Oxford University Press, USA

Published: 2001

Total Pages: 264

ISBN-13: 9780198296980

DOWNLOAD EBOOK

The role of information is central to the academic debate on finance. This book provides a detailed, current survey of theoretical research into the effect on stock prices of the distribution of information, comparing and contrasting major models. It examines theoretical models that explain bubbles, technical analysis, and herding behavior. It also provides rational explanations for stock market crashes. Analyzing the implications of asymmetries in information is crucial in this area. This book provides a useful survey for graduate students.

Handbook of Experimental Economics Results
Handbook of Experimental Economics Results

Author: Charles R. Plott

Publisher: Elsevier

Published: 2008-08-21

Total Pages: 1175

ISBN-13: 0444826424

DOWNLOAD EBOOK

While the field of economics makes sharp distinctions and produces precise theory, the work of experimental economics sometimes appears blurred and may produce uncertain results. The contributors to this volume have provided brief notes describing specific experimental results.

Papers in Experimental Economics
Papers in Experimental Economics

Author: Vernon L. Smith

Publisher: Cambridge University Press

Published: 1991-11-29

Total Pages: 829

ISBN-13: 0521364566

DOWNLOAD EBOOK

A collection of the major papers of Vernon L. Smith, the main creator of the new field of experimental economics.

Handbook on Systemic Risk
Handbook on Systemic Risk

Author: Jean-Pierre Fouque

Publisher: Cambridge University Press

Published: 2013-05-23

Total Pages: 993

ISBN-13: 1107023432

DOWNLOAD EBOOK

The Handbook on Systemic Risk, written by experts in the field, provides researchers with an introduction to the multifaceted aspects of systemic risks facing the global financial markets. The Handbook explores the multidisciplinary approaches to analyzing this risk, the data requirements for further research, and the recommendations being made to avert financial crisis. The Handbook is designed to encourage new researchers to investigate a topic with immense societal implications as well as to provide, for those already actively involved within their own academic discipline, an introduction to the research being undertaken in other disciplines. Each chapter in the Handbook will provide researchers with a superior introduction to the field and with references to more advanced research articles. It is the hope of the editors that this Handbook will stimulate greater interdisciplinary academic research on the critically important topic of systemic risk in the global financial markets.

Developments on Experimental Economics
Developments on Experimental Economics

Author: Sobei H. Oda

Publisher: Springer Science & Business Media

Published: 2007-06-29

Total Pages: 264

ISBN-13: 3540686592

DOWNLOAD EBOOK

This volume on experimental economics offers both new research grounds and a bird’s eye view on the field. In the first part, leading experimental economists, among them Vernon S. Smith and Daniel Friedman, give inspiring insights into their view on the general development of this field. In the second part, selected short papers by researchers from various disciplines present new ideas and concepts to solving problems in the real world.

Rethinking Housing Bubbles
Rethinking Housing Bubbles

Author: Steven D. Gjerstad

Publisher: Cambridge University Press

Published: 2014-05-12

Total Pages: 309

ISBN-13: 113995203X

DOWNLOAD EBOOK

In this highly original piece of work, Steven D. Gjerstad and Nobel Laureate Vernon L. Smith analyze the role of housing and its associated mortgage financing as a key element of economic cycles. The authors combine data from both laboratory and real markets to provide insight into the bubble propensity of real-world economic actors and use novel historical analysis on the Great Recession, the Great Depression, and all of the post-World War II recessions to establish the critical roles of housing, private-capital investment, and household and private institutional balance sheets in economic cycles. They develop a model that incorporates household balance sheets and bank balance sheets and offers insights based on this analysis concerning policy going forward, effectively changing the way economists think about economic cycles.