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instance the formation of speculative bubbles and crashes on financial markets, little attention has been devoted so far by … experiments on expectation formation in a controlled laboratory environment by Cars Hommes, Joep Sonnemans, Ian Tuinstra and Henk … increase in their wealth level. With respect to previous experiments that did not include an explicit evaluation of risk by …
Persistent link: https://www.econbiz.de/10002133504
We consider a simple pure exchange economy with two assets, one riskless, yielding a constant return, and one risky, paying a stochastic dividend, and we assume trading to take place in discrete time inside an endogenous price formation setting. Traders demand for the risky asset is expressed as...
Persistent link: https://www.econbiz.de/10003209247
We consider a simple pure exchange economy with two assets, one riskless, yielding a constant return on investment, and one risky, paying a stochastic dividend. Trading takes place in discrete time and in each trading period the price of the risky asset is fixed by imposing market clearing...
Persistent link: https://www.econbiz.de/10003212664