Work

The role of the end time in experimental asset markets

Year: 2024

Type: article

Abstract: There are hundreds of scientific articles on experimental asset markets. Almost all of them use a short and definite horizon. This may be one of the starkest differences between experimental settings and real-world financial markets, which usually have indefinite and comparatively long horizons. We analyze the implications of different end time assumptions in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find very similar price dynamics with recurring bubbles in all treatments.

Source: Journal of Corporate Finance

DOI: 10.1016/j.jcorpfin.2024.102647

Authors: Anita Kopányi-Peuker, Matthias Weber

Institutions: Radboud University Nijmegen, University of St.Gallen, Swiss Finance Institute

Language: English

Topic: Economic theories and models

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,650

Funders: Universität St. Gallen, Universiteit van Amsterdam