Coordination on Bubbles In Large-Group Asset Pricing Experiments

• Main Authors: Bao, Te, Hennequin, Myrna, Hommes, Cars, Massaro, Domenico
• Other Authors: School of Social Sciences
• Format: Article
• Language: English
• Published: 2022
• Subjects: Social sciences::Economic theory; Experimental Economics; Asset Price Bubbles
• Online Access: https://hdl.handle.net/10356/154889
• Institution: Nanyang Technological University

We present a large-group experiment in which participants predict the price of an asset, whose realization depends on the aggregation of individual forecasts. The markets consist of 21 to 32 participants, a group size larger than in most experiments. Multiple large price bubbles occur in six out of...