Underreaction to fundamental information and asymmetry in mispricing between bullish and bearish markets. An experimental study

DOI10.1016/J.JEDC.2008.08.002zbMath1170.91356OpenAlexW2086100459MaRDI QIDQ2271645

Michael Kirchler

Publication date: 7 August 2009

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2008.08.002

zbMATH Keywords

experimentbubblesunderreactionasset markets

Mathematics Subject Classification ID

Auctions, bargaining, bidding and selling, and other market models (91B26)

Related Items (7)

Individual expectations, limited rationality and aggregate outcomes ⋮ A damped diffusion framework for financial modeling and closed-form maximum likelihood estimation ⋮ Bounded rationality, asymmetric information and mispricing in financial markets ⋮ Asymmetric guessing games ⋮ Bubble measures in experimental asset markets ⋮ On the ingredients for bubble formation: informed traders and communication ⋮ Number sense, trading decisions and mispricing: an experiment

Uses Software

• Z-Tree

Cites Work

• Fat tails and volatility clustering in experimental asset markets
• Rational expectations equilibrium with conditioning on past prices: A mean-variance example
• Heterogeneous beliefs and routes to chaos in a simple asset pricing model
• An experimental examination of the house money effect in a multi-period setting
• Continuous Auctions and Insider Trading
• Informed Speculation with Imperfect Competition
• Market for Information: Experimental Evidence
• VOLATILITY CLUSTERING IN FINANCIAL MARKETS: A MICROSIMULATION OF INTERACTING AGENTS
• Dividend timing and behavior in laboratory asset markets
• Price bubbles in laboratory asset markets with constant fundamental values

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