experiment that regularly produces valuation bubble and crash events. Global sessions involved real time trades between subjects … asset market bubbles occur in all sessions, but global markets had significantly more extreme and longer duration valuation … bubbles. Additionally, subjects at the most suboptimal times-of-day held significantly more asset shares in their portfolios …

We construct a model of bubbles where an asset can be used as collateral primarily due to higher-order uncertainty … fool” exists who will purchase it at a much higher price. We show that such bubbles can lead to inefficient overinvestment …

This paper develops a finite-period model of rational bubbles where trade of an asset takes place through a chain of … reasonable assumptions, the equilibrium price is increasing and accelerating during bubbles although the fundamental value is … constant over time. Bubbles may be detrimental to the economy; however, bubble-bursting policies affect agents' beliefs and it …

This paper argues that short selling might give rise to bubbles that would otherwise not exist in equilibrium. It is …

We study the effect of ambiguity on the formation of bubbles and on the occurrence of crashes in experimental asset … is risky although bubbles form in both the ambiguous and the risky environments. Additionally, bubbles do not crash in …