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2015-02-05Buch DOI: 10.18452/4563
Cognitive Bubbles
dc.contributor.authorBosch-Rosa, Ciril
dc.contributor.authorMeissner, Thomas
dc.contributor.authorBosch-Domènech, Antoni
dc.date.accessioned2017-06-16T01:11:22Z
dc.date.available2017-06-16T01:11:22Z
dc.date.created2015-06-18
dc.date.issued2015-02-05
dc.date.submitted2015-01-05
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/5215
dc.description.abstractSmith et al. (1988) reported large bubbles and crashes in experimental asset markets, a result that has been replicated by a large literature. Here we test whether the occurrence of bubbles depends on the experimental subjects' cognitive sophistication. In a two-part experiment, we first run a battery of tests to assess the subjects' cognitive sophistication and classify them into low or high levels of cognitive sophistication. We then invite them separately to two asset market experiments populated only by subjects with either low or high cognitive sophistication. We observe classic bubble- crash patterns in the sessions populated by subjects with low levels of cognitive sophistication. Yet, no bubbles or crashes are observed with our sophisticated subjects. This result lends strong support to the view that the usual bubbles and crashes in experimental asset markets are caused by subjects' confusion and, therefore, raises some doubts about the external validity of this type of experiments.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectAsset Market Experimenteng
dc.subjectBubbleseng
dc.subjectCognitive Sophisticationeng
dc.subject.ddc310 Statistik
dc.subject.ddc330 Wirtschaft
dc.titleCognitive Bubbles
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-100230740
dc.identifier.doihttp://dx.doi.org/10.18452/4563
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages32
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2015
local.edoc.container-issue6
local.edoc.container-year2015
local.edoc.container-erstkatid2195055-6

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