TY  - UNPD
A1  - Baghestanian, Sascha
A1  - Massenot, Baptiste
T1  - Predictably irrational : gambling for resurrection in experimental asset markets?
T2  - SAFE working paper series ; No. 104
N2  - Do markets correct individual behavioral biases? In an experimental asset market, we compare the outcomes of a standard market economy to those of a an island economy that removed market interactions. We observe asset price bubbles in the market economy while prices are stable in the island economy. We also find that subjects took more risk following larger losses, resulting in larger prices and consistent with a gambling for resurrection motive. This motive can translate into bubbles in the market economy because higher prices increase average losses and thus reinforce the desire to resurrect. By contrast, the absence of such a strategic complementarity in island economies can explain the more stable outcome. These results suggest that markets do not correct behavioral biases, rather the contrary.
T3  - SAFE working paper - 104 
Y1  - 2015
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37449
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-374497
UR  - http://ssrn.com/abstract=2607869
PB  - SAFE
CY  - Frankfurt am Main
ER  -