Document Type
Article
Publication Date
2017
Abstract
"One can define a bubble as a persistent increase in the price of an asset over and above its fundamental value with an abrupt fall in prices when no buyers are available to make purchases. The occurrence of market bubbles has a long history, starting with the Dutch Tulip Mania (1624-1637) to the South Sea and Mississippi Bubble (1716-1720), the British Railway Mania (1840´s) to the crash of 1929. Recent events have been the crash of 1987, the dot-com bubble (1990s) to the most recent housing crisis in early 2000. Even though bubbles, and a subsequent crash, may reallocate resources to more efficient activities, the economic costs of bubbles are large and sometimes felt for long periods of time."
Recommended Citation
Kujal, P. & Powell, O. Bubbles in experimental asset markets. ESI Working Papers 17-01. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/211/
Comments
Working Paper 17-01