This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

A Review of Bubbles and Crashes in Experimental Asset Markets Page 1 10 A REVIEW OF
BUBBLES AND CRASHES IN EXPERIMENTAL ASSET MARKETS Stefan Palan Karl-Franzens …

Markets are central to modern society, so their failures can be devastating. Here, we
examine a prominent failure: price bubbles. Bubbles emerge when traders err collectively in …

This study advances a social constructionist view of financial market behavior. The paper
suggests that the market's reaction to particular corporate practices, such as stock …

We report the results of an experiment designed to study the role of speculation in the
formation of bubbles and crashes in laboratory asset markets. In a setting in which …

Research summary: Pursuing sources of entrepreneurial and competitive advantage,
researchers have been exploring cognition. We examine how cognitive capabilities affect …

Rational Choice--the published record of a conference on economics and psychology--
frames the issues as a contest between economic theory and the falsifying evidence from …

We elicit traders' predictions of future price trajectories in repeated experimental markets for
a 15-period-lived asset. We find that individuals' beliefs about prices are adaptive, and …

ABSTRACT A series of experiments illustrate that relaxing short‐selling constraints lowers
prices in experimental asset markets, but does not induce prices to track fundamentals. We …

We review bubble measures which are commonly used in the experimental asset market
literature. It seems sensible to require that measures of mispricing should (i) relate the …