1 Department of Economics and Economic Science Laboratory, University of Arizona, Tucson, AZ 85721. · 2 Research Institute of Industrial Economics (IUI), Box 55665, 102 14 Stockholm, Sweden. · 3 Department of Economics, Auburn University Montgomery, P.O. Box 244023, Montgomery, AL 36124-4023.
open access
Abstract
We investigate the occurrence of bubble-crash pricing patterns in laboratory financial markets with a mixture of experienced and inexperienced traders. We find that even with a minority of experienced traders, bubbles are substantially abated.