Cash inflow and trading horizon in asset markets

Arbeitspapier

It is conjectured that one of the major ingredients of historic financial bubbles was the inflow of money in various forms. We run 36 laboratory asset markets and investigate the joint effect of cash inflow and trading horizon on price efficiency. We show that only markets with cash inflow and long trading horizon exhibit bubbles and crashes. We also observe that markets with extended trading horizon but without cash inflow and markets with shorter trading horizon do not trigger bubbles. Finally, we report that beliefs about prices and, importantly, about (constant) fundamentals follow bubble patterns as well.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers in Economics and Statistics ; No. 2016-06

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Design of Experiments: Laboratory, Group Behavior ; Expectations; Speculations ; General Financial Markets: General (includes Measurement and Data)
• Thema: experimental finance ; cash inflow ; trading horizon ; backward induction ; asset market ; price efficiency

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Razen, Michael ; Huber, Jürgen ; Kirchler, Michael
• Ereignis: Veröffentlichung
• (wer): University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
• (wo): Innsbruck
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/146123
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ