Soft landing of a stock market bubble : an experimental study

dc.contributor.author	Becker, Ralf
dc.contributor.author	Fischbacher, Urs
dc.contributor.author	Hens, Thorsten
dc.date.accessioned	2006-07-13T08:50:31Z
dc.date.available	2006-07-13T08:50:31Z
dc.date.issued	2003-10
dc.identifier.issn	1500-4066
dc.identifier.uri	http://hdl.handle.net/11250/163723
dc.description.abstract	The paper investigates the effect of interest policy on price bubbles, trading behavior and portfolio choice in experimental stock markets. A series of experiments has 8 participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds. Treatment groups are subjected to an endogenous interest policy, while control groups experience a constant interest rate. Our stock markets are characterized by bubbles. While we observe a small positive impact of our interest policy on bubbles, the policy also strongly increases market volatility. On the other hand, concerning portfolio choice, we find evidence for value-driven (rational) investment behavior.	en
dc.format.extent	692712 bytes
dc.format.mimetype	application/pdf
dc.language.iso	eng	en
dc.publisher	Norwegian School of Economics and Business Administration. Department of Finance and Management Science	en
dc.relation.ispartofseries	Discussion paper	en
dc.relation.ispartofseries	2003:10	en
dc.title	Soft landing of a stock market bubble : an experimental study	en
dc.type	Working paper	en