Fellner, Gerlinde; Theissen, Erik - In: Journal of Economic Behavior & Organization 101 (2014) C, pp. 113-127
The overvaluation hypothesis (Miller, 1977) predicts that (a) stocks are overvalued in the presence of short selling restrictions and that (b) the overvaluation increases in the degree of divergence of opinion. We design an experiment that allows us to test these predictions in the laboratory....