Nonspeculative Bubbles in Experimental Asset Market. Lei, Noussair and Plott (2001). Presented by Huanren (Warren) Zhang. Outlines. Introduction to Bubbles Research Questions: Why do bubbles occur ? Speculative Hypothesis Active Participation Hypothesis Experimental Design Results
Lei, Noussair and Plott (2001)
Presented by Huanren(Warren) Zhang
However, bubbles are still observed and median prices are not significantly affected by the introduction of a second market.
Thus, the data supports the Active Participation Hypotheses, but this hypothesis cannot explain the pricing patterns in bubbles.Results for TwoMkt Sessions