Journal article
Margin, Short Selling, and Lotteries in Experimental Asset Markets
Abstract
The robustness of bubbles and crashes in markets for assets with finite lives is perplexing. This paper reports the results of experimental asset markets in which participants trade two assets. In some markets, price bubbles form. In these markets, traders pay higher prices for the asset with lottery characteristics (i.e., a claim on a large, unlikely payoff). However, institutional design has a significant impact on deviations in prices from …
Authors
Ackert LF; Charupat N; Church BK; Deaves R
Journal
Southern Economic Journal, Vol. 73, No. 2, pp. 419–436
Publisher
Wiley
Publication Date
October 2006
DOI
10.1002/j.2325-8012.2006.tb00779.x
ISSN
0038-4038