Do Speculative Stocks Lower Prices and Increase Volatility of Value Stocks?

Caginalp, Gunduz; Ilieva, Vladimira; Porter, David; Smith, Vernon L.

doi:10.1207/s15327760jpfm0302_07

Cited by 21 publications

(25 citation statements)

References 11 publications

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“…This finds additional empirical support by Haruvy and Noussair (), who show that increasing cash endowments ten‐fold leads to higher prices and greater mispricing, and Caginalp et al . (), who use a different market design yet obtain qualitatively similar results.…”

Section: Stylized Resultsmentioning

confidence: 74%

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A Review of Bubbles and Crashes in Experimental Asset Markets

Palan

2013

Journal of Economic Surveys

244

111

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Section: Stylized Resultsmentioning

confidence: 74%

“…Finally, Caginalp et al . () report that prices of their ‘value stock’ are depressed when there is the possibility to trade a ‘speculative stock’. Their results support a liquidity mechanic by which money invested in one asset suppresses the prices of the other.…”

Section: Stylized Resultsmentioning

confidence: 99%

A Review of Bubbles and Crashes in Experimental Asset Markets

Palan

2013

Journal of Economic Surveys

244

111

View full text Add to dashboard Cite

show abstract

“…Finally, our market has a large number of securities. Despite the mixed evidence with only two assets (see Ackert et al, 2006Ackert et al, , 2009Caginalp et al, 2002;Chan et al, 2013;Fisher and Kelly, 2000, for example), the overall direction of these previous results indicates that multiple assets tend to reduce overly exuberant pricing especially if the assets differ.…”

Section: Features Mitigating Bubblesmentioning

confidence: 86%

Overpricing persistence in experimental asset markets with intrinsic uncertainty

Sornette

Andraszewicz

et al. 2020

Economics

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To study coordination in complex social systems such as financial markets, the authors introduce a new prediction market set-up that accounts for fundamental uncertainty. Nonetheless, the market is designed so that its total value is known, and thus its rationality can be evaluated. In two experiments, the authors observe that quick consensus emerges early yielding pronounced mispricing, which however does not show the standard "bubble-and-crash". The set-up is implemented within the xYotta collaborative platform (https://xyotta.com). xYotta's functionality offers a large number of extensions of various complexity such as running several parallel markets with the same or different users, as well as collaborative project development in which projects undergo the equivalent of an IPO (initial public offering) and whose subsequent trading matches the role of financial markets in determining value. xYotta is thus offered to researchers as an open source software for the broad investigation of complex systems with human participants.

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“…The returns of the two stocks were determined randomly. Draws were taken from two different distributions and the fundamental values of the stocks were always displayed to all subjects much like the setup in Caginalp et. al (2002).…”

Section: Methodsmentioning

confidence: 99%

Teaching e-commerce through the use of real-time interactive laboratory experiments

Vragov¹,

Wilson²

2005

IJIOME

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During the last few years pedagogical philosophy has been trying to incorporate lessons from active learning theory. While most practitioners agree that active learning is useful they still lack a diverse set of tools to incorporate it in the classroom. This article describes a methodology for including real-time laboratory experiments in the regular curriculum. The discussion uses as an example an actual class, which was taught to MIS seniors during the Spring 2003 semester. The course contains a learning module composed of nine web-based interactive experiments. During the experimental sessions students have to demonstrate their understanding of the material in the lectures. Experimental results can be incorporated as part of the student grade. Judging by students' performance and opinions about the class, the authors conclude that this teaching methodology was successful. Some suggestions for further refinement of the class are also offered.

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Do Speculative Stocks Lower Prices and Increase Volatility of Value Stocks?

Cited by 21 publications

References 11 publications

A Review of Bubbles and Crashes in Experimental Asset Markets

A Review of Bubbles and Crashes in Experimental Asset Markets

Overpricing persistence in experimental asset markets with intrinsic uncertainty

Teaching e-commerce through the use of real-time interactive laboratory experiments

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