The Role of the End Time in Experimental Asset Markets
Type
working paper
Date Issued
2021-07-19
Author(s)
Abstract
By now there are hundreds of scientific articles on experimental asset markets. Almost all of these experiments use a short and definite horizon. This may be one of the starkest differences to financial asset markets outside the laboratory, which usually have indefinite and comparatively long horizons. We analyze the role of the end time in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon).
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Eprints ID
263538
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Name
SoF WP The Role of the End Time.pdf
Size
581.55 KB
Format
Adobe PDF
Checksum (MD5)
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