Asset Legitimacy in Experimental Asset Markets

Debapriya Jojo Paul, Julia Henker, Sian Owen

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

We investigate whether prices in experimental asset markets behave differently when participants are required to trade with earned wealth compared to unearned wealth. Unearned endowed wealth, the standard practice in experimental studies of asset price bubbles, may elicit greater than normal risk-seeking behavior. We test for this altered behavior by requiring some participants to earn their initial market allocation. We do not find a significant difference in the frequency, severity, or duration of mispricing between earned and unearned endowments. Our results confirm the validity of the existing methodologies used in the study of bubbles in experimental settings.

Original languageEnglish
Pages (from-to)183-198
Number of pages16
JournalJournal of Behavioral Finance
Volume16
Issue number2
DOIs
Publication statusPublished - 3 Apr 2015

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Illegitimacy
Financial Management
Reproducibility of Results
Legitimacy
Experimental asset markets
Assets
Wealth

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Paul, Debapriya Jojo ; Henker, Julia ; Owen, Sian. / Asset Legitimacy in Experimental Asset Markets. In: Journal of Behavioral Finance. 2015 ; Vol. 16, No. 2. pp. 183-198.
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Asset Legitimacy in Experimental Asset Markets. / Paul, Debapriya Jojo; Henker, Julia; Owen, Sian.

In: Journal of Behavioral Finance, Vol. 16, No. 2, 03.04.2015, p. 183-198.

Research output: Contribution to journalArticleResearchpeer-review

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