Arbeitspapier
Does risk sorting explain bubbles?
A recent stream of experimental economics literature studies the factors that contribute to the emergence of financial bubbles. We consider a setting where participants sorted according to their degree of risk aversion trade in experimental asset markets. We show that risk sorting is able to explain bubbles partially: Markets with the most risk-tolerant traders exhibit larger bubbles than markets with the most risk averse traders. In our study risk aversion does not correlate with gender or cognitive abilities, so it is an additional factor that helps understand bubbles.
- Language
-
Englisch
- Bibliographic citation
-
Series: IEHAS Discussion Papers ; No. MT-DP - 2019/5
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Asset Pricing; Trading Volume; Bond Interest Rates
- Subject
-
externalities
experiment
risk sorting
asset bubble
- Event
-
Geistige Schöpfung
- (who)
-
Kiss, Hubert J.
Kóczy, László Á.
Pintér, Ágnes
Sziklai, Balázs R.
- Event
-
Veröffentlichung
- (who)
-
Hungarian Academy of Sciences, Institute of Economics
- (where)
-
Budapest
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kiss, Hubert J.
- Kóczy, László Á.
- Pintér, Ágnes
- Sziklai, Balázs R.
- Hungarian Academy of Sciences, Institute of Economics
Time of origin
- 2019
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