Asset bubbles without dividends : an experiment


Oechssler, Jörg ; Schmidt, Carsten ; Schnedler, Wendelin


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URL: https://ub-madoc.bib.uni-mannheim.de/2566
URN: urn:nbn:de:bsz:180-madoc-25662
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung
Volume: 07-01
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject: 330 Economics
Classification: JEL: C92 G12 D8 ,
Subject headings (SWD): Kreditmarkt , Bubble-Politik , Dividende , Theorie
Keywords (English): asset markets , bubbles , experiment , mirages , dividends
Abstract: Bubbles in asset markets have been documented in numerous experimental studies. However, all experiments in which bubbles occur pay dividends after each trading day. In this paper we study whether bubbles can occur in markets without dividends. We investigate the role of two features that are present in real markets. (1) The mere possibility that some traders may have inside information, and (2) the option to communicate with other traders. We find that bubbles can indeed occur without dividends. Surprisingly, communication turns out to be counterproductive for bubble formation, whereas the possibility of inside information is, as expected, crucial.
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Dieser Eintrag ist Teil der Universitätsbibliographie.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Oechssler, Jörg ; Schmidt, Carsten ; Schnedler, Wendelin (2007) Asset bubbles without dividends : an experiment. Open Access Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung Mannheim 07-01 [Working paper]
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