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 article surveys the use of nonparametric permutation tests for analyzing experimental
data. The permutation approach, which involves randomizing or permuting features of the …

To explore why bubbles frequently emerge in the experimental asset market model of Smith,
Suchanek, and Williams (1988), we vary the fundamental value process (constant or …

We report on a large number of laboratory market experiments demonstrating that a market
bubble can be reduced under the following conditions: 1) a low initial liquidity level, ie, less …

We report 28 new experiment sessions consisting of up to three experience levels to
examine the robustness of learning and “error” elimination among participants in a …

We consider the relationship between trader emotions and asset market behavior. We
create experimental asset markets with the structure first studied by Smith, Suchanek, and …

The efficiency of financial markets and their potential to produce bubbles are central topics
in academic and professional debates. Yet, little is known about the contribution of financial …

Abstract Smith et al.(Econometrica 56 (5): 1119, 1988) reported large bubbles and crashes
in experimental asset markets, a result that has been replicated many times. Here we test …

How does venture capital take root in an economy? While it is firmly established and
sophisticated in the United States, many other countries face an institutional environment …