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Applied Mathematical Finance Volume 1, 1994 - Issue 2
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Original Articles

Stock market bubbles in the laboratory

David P. Porter California Institute of Technology
&
Vernon L. Smith University of Arizona
Pages 111-128 | Received 22 May 1994, Published online: 28 Jul 2006

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Read on this site (17)

Mark DeSantis & David Porter. (2022) Introduction to the Special Issue in Honor of Professor Vernon Lomax Smith. Journal of Behavioral Finance 23:4, pages 368-370.
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Tsung-Hsun Lu & Yung-Ming Shiu. (2016) Can 1-day candlestick patterns be profitable on the 30 component stocks of the DJIA?. Applied Economics 48:35, pages 3345-3354.
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Vinod Cheriyan & Anton J. Kleywegt. (2016) A dynamical systems model of price bubbles and cycles. Quantitative Finance 16:2, pages 309-336.
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Debapriya Jojo Paul, Julia Henker & Sian Owen. (2015) Asset Legitimacy in Experimental Asset Markets. Journal of Behavioral Finance 16:2, pages 183-198.
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Gregory Waymire & Sudipta Basu. (2011) Economic crisis and accounting evolution. Accounting and Business Research 41:3, pages 207-232.
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Ehsan Ahmed, J. Barkley Rosser Jr.JamshedY. Uppal. (2010) Emerging Markets and Stock Market Bubbles: Nonlinear Speculation?. Emerging Markets Finance and Trade 46:4, pages 23-40.
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Ahmet Duran & Gunduz Caginalp. (2007) Overreaction diamonds: precursors and aftershocks for significant price changes. Quantitative Finance 7:3, pages 321-342.
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Morris Altman . (2004) The Nobel Prize in behavioral and experimental economics: a contextual and critical appraisal of the contributions of Daniel Kahneman and Cernon Smith. Review of Political Economy 16:1, pages 3-41.
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Gunduz Caginalp, Vladimira Ilieva, David Porter & Vernon Smith. (2003) Derivation of Asset Price Equations Through Statistical Inference. Journal of Behavioral Finance 4:4, pages 217-224.
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Gregory Lypny. (2003) A Pilot Study Using an Online, Experimental, Two-Asset Market. The Journal of Economic Education 34:3, pages 204-213.
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Gunduz Caginalp, Vladimira Ilieva, David Porter & Vernon Smith. (2002) Do Speculative Stocks Lower Prices and Increase Volatility of Value Stocks?. Journal of Psychology and Financial Markets 3:2, pages 118-132.
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Gunduz Caginalp, David Porter & Vernon Smith. (2001) Financial Bubbles: Excess Cash, Momentum, and Incomplete Information. Journal of Psychology and Financial Markets 2:2, pages 80-99.
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Gunduz Caginalp, David Porter & Vernon L. Smith. (2000) Overreactions, Momentum, Liquidity, and Price Bubbles in Laboratory and Field Asset Markets. Journal of Psychology and Financial Markets 1:1, pages 24-48.
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. (2000) A New Paradigm for Asset Pricing. Journal of Psychology and Financial Markets 1:1, pages 3-9.
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G. Caginalp & H. Laurent. (1998) The predictive power of price patterns. Applied Mathematical Finance 5:3-4, pages 181-205.
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G. Caginalp & G. Constantine. (1995) Statistical inference and modelling of momentum in stock prices. Applied Mathematical Finance 2:4, pages 225-242.
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G. Caginalp & D. Balenovich. (1994) Market oscillations induced by the competition between value-based and trend-based investment strategies. Applied Mathematical Finance 1:2, pages 129-164.
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Articles from other publishers (52)

Brian D. Kluger. (2021) Asset market bubbles in an experiment with sequential information releases. Review of Behavioral Finance 14:5, pages 772-790.
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Anushua Banerjee & Parthajit Kayal. (2021) Bubble run-ups and sell-offs: a study of Indian stock market. Review of Behavioral Finance 14:5, pages 875-885.
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Sabiou M. Inoua & Vernon L. SmithSabiou M. Inoua & Vernon L. Smith. 2022. Economics of Markets. Economics of Markets 157 182 .
Carey Caginalp, Gunduz Caginalp & David Swigon. (2021) Stochastic asset flow equations: Interdependence of trend and volatility. Physica A: Statistical Mechanics and its Applications 574, pages 125985.
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Ingolf Gunnar Anton Pernice. 2021. Financial Cryptography and Data Security. FC 2021 International Workshops. Financial Cryptography and Data Security. FC 2021 International Workshops 124 135 .
Brice Corgnet, Roberto Hernán-González & Praveen Kujal. (2020) On booms that never bust: Ambiguity in experimental asset markets with bubbles. Journal of Economic Dynamics and Control 110, pages 103754.
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Mondher Bouattour & Isabelle Martinez. (2019) Efficient market hypothesis: an experimental study with uncertainty and asymmetric information. Finance Contrôle Stratégie:22-4.
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Mondher Bouattour & Isabelle Martinez. (2019) Hypothèse d'efficience des marchés : une étude expérimentale avec incertitude et asymétrie d’information. Finance Contrôle Stratégie:22-4.
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Mateusz Polak & Romuald Polczyk. (2019) Misinformation About Dividend Payouts Influences Transaction Prices in Experimental Asset Markets. e-Finanse 15:4, pages 44-54.
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Lawrence Choo, Todd R. Kaplan & Ro’i Zultan. (2017) Information aggregation in Arrow–Debreu markets: an experiment. Experimental Economics 22:3, pages 625-652.
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Carey Caginalp & Gunduz Caginalp. (2019) Stochastic asset price dynamics and volatility using a symmetric supply and demand price equation. Physica A: Statistical Mechanics and its Applications 523, pages 807-824.
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Carey Caginalp. (2019) A dynamical systems approach to cryptocurrency stability. AIMS Mathematics 4:4, pages 1065-1077.
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Carey Caginalp & Gunduz Caginalp. (2019) Establishing cryptocurrency equilibria through game theory. AIMS Mathematics 4:3, pages 420-436.
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Benjamin R. Eisenreich, Rei Akaishi & Benjamin Y. Hayden. (2017) Control without Controllers: Toward a Distributed Neuroscience of Executive Control. Journal of Cognitive Neuroscience 29:10, pages 1684-1698.
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John Thrasher & Kevin Vallier. (2015) The Fragility of Consensus: Public Reason, Diversity and Stability. European Journal of Philosophy 23:4, pages 933-954.
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Steven D. Gjerstad, David Porter, Vernon L. Smith & Abel Winn. (2015) Retrading, production, and asset market performance. Proceedings of the National Academy of Sciences 112:47, pages 14557-14562.
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Carlos Cueva, R. Edward Roberts, Tom Spencer, Nisha Rani, Michelle Tempest, Philippe N. Tobler, Joe Herbert & Aldo Rustichini. (2015) Cortisol and testosterone increase financial risk taking and may destabilize markets. Scientific Reports 5:1.
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Brice Corgnet, Roberto Hernán-González, Praveen Kujal & David Porter. (2015) The Effect of Earned Versus House Money on Price Bubble Formation in Experimental Asset Markets*. Review of Finance 19:4, pages 1455-1488.
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Steven D. Gjerstad & Vernon L. Smith. 2014. Rethinking Housing Bubbles. Rethinking Housing Bubbles 20 48 .
Stefan Palan. 2013. A Collection of Surveys on Market Experiments. A Collection of Surveys on Market Experiments 197 217 .
Stefan Palan. (2013) A REVIEW OF BUBBLES AND CRASHES IN EXPERIMENTAL ASSET MARKETS. Journal of Economic Surveys 27:3, pages 570-588.
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Stephen L. Cheung & Stefan Palan. (2011) Two heads are less bubbly than one: team decision-making in an experimental asset market. Experimental Economics 15:3, pages 373-397.
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M. DeSantis, D. Swigon & G. Caginalp. (2012) Nonlinear Dynamics and Stability in a Multigroup Asset Flow Model. SIAM Journal on Applied Dynamical Systems 11:3, pages 1114-1148.
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Raymond J. Hawkins. (2011) Lending sociodynamics and economic instability. Physica A: Statistical Mechanics and its Applications 390:23-24, pages 4355-4369.
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Gunduz Caginalp & Mark DeSantis. (2011) Nonlinearity in the dynamics of financial markets. Nonlinear Analysis: Real World Applications 12:2, pages 1140-1151.
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Damir Tokic. (2011) Rational destabilizing speculation, positive feedback trading, and the oil bubble of 2008. Energy Policy 39:4, pages 2051-2061.
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Suneal K. Chaudhary. (2010) An Autoregressive Market Model of Trader Herding and Communication. The Journal of Trading 6:1, pages 62-73.
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Stefan PalanStefan Palan. 2009. Bubbles and Crashes in Experimental Asset Markets. Bubbles and Crashes in Experimental Asset Markets 143 157 .
Stefan PalanStefan Palan. 2009. Bubbles and Crashes in Experimental Asset Markets. Bubbles and Crashes in Experimental Asset Markets 87 136 .
G. Caginalp & V. Ilieva. (2008) The dynamics of trader motivations in asset bubbles. Journal of Economic Behavior & Organization 66:3-4, pages 641-656.
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Hailin Li, Cihan H. Dagli & David Enke. (2007) Short-term Stock Market Timing Prediction under Reinforcement Learning Schemes. Short-term Stock Market Timing Prediction under Reinforcement Learning Schemes.
Catherine C Eckel. (2004) Vernon Smith: economics as a laboratory science. The Journal of Socio-Economics 33:1, pages 15-28.
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Hideyuki Mizuta, Ken Steiglitz & Erez Lirov. (2003) Effects of price signal choices on market stability. Journal of Economic Behavior & Organization 52:2, pages 235-251.
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Vernon L Smith. (2003) Constructivist and Ecological Rationality in Economics. American Economic Review 93:3, pages 465-508.
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A. Belyanin. (2003) Daniel Kahneman and Vernon Smith: Nobel Prize for the Feeling of Reality (Economic Analysis of Human Behavior). Voprosy Ekonomiki:1, pages 4-23.
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Markus Nöth & Martin Weber. (2003) Information Aggregation with Random Ordering: Cascades and Overconfidence. The Economic Journal 113:484, pages 166-189.
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C.A. Kaplan. (2001) Collective intelligence: a new approach to stock price forecasting. Collective intelligence: a new approach to stock price forecasting.
Vernon L. Smith. 2010. Rationality in Economics. Rationality in Economics.
Charles R. Plott. (2000) Markets as Information Gathering Tools. Southern Economic Journal 67:1, pages 1-15.
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Kevin A. McCabe & Vernon L. Smith. (2000) A comparison of naïve and sophisticated subject behavior with game theoretic predictions. Proceedings of the National Academy of Sciences 97:7, pages 3777-3781.
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Gunduz Caginalp, David Porter & Vernon Smith. (2000) Momentum and overreaction in experimental asset markets. International Journal of Industrial Organization 18:1, pages 187-204.
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G. Caginalp & D. Balenovich. (1999) Asset flow and momentum: deterministic and stochastic equations. Philosophical Transactions of the Royal Society of London. Series A: Mathematical, Physical and Engineering Sciences 357:1758, pages 2119-2133.
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Gunduz Caginalp, David Porter & Vernon Smith. (1998) Initial cash/asset ratio and asset prices: An experimental study. Proceedings of the National Academy of Sciences 95:2, pages 756-761.
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G. Caginalp & D. Balenovich. (1996) Trend-based asset flow in technical analysis and securities marketing. Psychology and Marketing 13:4, pages 407-444.
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Hans Hvide, Jae Lee & Terrance Odean. (2019) Easy Money, Cheap Talk, or Spuds: Inducing Risk Aversion in Economics Experiments. SSRN Electronic Journal.
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Peter L. Bossaerts, Jason Shachat & Kuangli Xie. (2018) Arbitrage Opportunities: Anatomy and Remediation. SSRN Electronic Journal.
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Gunduz Caginalp, Vladimira Ilieva, David Porter & Vernon Smith. (2002) Do Speculative Stocks Lower Prices and Increase Volatility of Value Stocks?. SSRN Electronic Journal.
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Hiromine Sakurai & Eizo Akiyama. (2017) Bubbles and Information in Continuous Double Auction and Call Market: An Experiment. SSRN Electronic Journal.
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Claudia Keser & Andreas Marksttdter. (2014) Informational Asymmetries in Laboratory Asset Markets with State-Dependent Fundamentals. SSRN Electronic Journal.
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Bernard S. Black, Charles K. Whitehead & Jennifer Mitchell Coupland. (2015) The Nonprime Mortgage Crisis and Positive Feedback Lending. SSRN Electronic Journal.
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Gregory B. Waymire & Sudipta Basu. (2011) Economic Crisis and Accounting Evolution. SSRN Electronic Journal.
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Markku Kaustia & Samuli Knüpfer. (2011) Peer Performance and Stock Market Entry. SSRN Electronic Journal.
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