TY - JOUR
T1 - Asset Legitimacy in Experimental Asset Markets
AU - Paul, Debapriya Jojo
AU - Henker, Julia
AU - Owen, Sian
PY - 2015/4/3
Y1 - 2015/4/3
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84938380952&partnerID=8YFLogxK
U2 - 10.1080/15427560.2015.1034863
DO - 10.1080/15427560.2015.1034863
M3 - Article
AN - SCOPUS:84938380952
SN - 1542-7560
VL - 16
SP - 183
EP - 198
JO - Journal of Behavioral Finance
JF - Journal of Behavioral Finance
IS - 2
ER -