The role of the end time in experimental asset markets

Anita Kopányi-Peuker, Matthias Weber

By now there are hundreds of scientific articles on experimental asset markets. Almost all of these experiments use a short and definite horizon. This may be one of the starkest differences to financial asset markets outside the laboratory, which usually have indefinite and comparatively long horizons. We analyze the role of the end time in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon)

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Year of publication:	July 21, 2021
Authors:	Kopányi-Peuker, Anita ; Weber, Matthias
Publisher:	St. Gallen : School of Finance, University of St. Gallen
Subject:	Experimental finance \| asset market experiments \| time horizon \| indefinite endtime \| bubbles \| Finanzmarkt \| Financial market \| Spekulationsblase \| Bubbles \| Experiment \| Theorie \| Theory \| Zeit \| Time \| Börsenkurs \| Share price \| Anlageverhalten \| Behavioural finance \| Prognosemarkt \| Prediction market \| Finanzkrise \| Financial crisis \| Wertpapierhandel \| Securities trading