Quotation Shestakova, Natalia, Powell, Owen, Gladyrev, Dmitry. 2019. Bubbles, experience and success. Journal of Behavioral and Experimental Finance. 22 206-213.




One of the most robust findings in the experimental asset market literature is the experience effect: markets are efficient, that is, they generate prices close to fundamentals, as long as at least some traders are familiar with the environment. In this paper we show that market efficiency of mixed-experience markets is sensitive to the previous success of experienced traders. This sensitivity results from differences in trading behavior that prevail across experimental rounds. On the other hand, we find no evidence for the experience effect: our markets with experienced and inexperienced traders are not different from each other, even though our design and procedures closely follow those from the literature.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Behavioral and Experimental Finance
Language English
Title Bubbles, experience and success
Volume 22
Year 2019
Page from 206
Page to 213
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S2214635018302296
DOI https://doi.org/10.1016/j.jbef.2019.02.011
Open Access N
JEL D40; D84; G11; G12; G14


Powell, Owen (Former researcher)
Gladyrev, Dmitry (Ural Federal University, Russian Federation)
Shestakova, Natalia (University of Vienna, Austria)
Institute for Markets and Strategy IN (Details)
Competence Center for Experimental Research WE (Details)
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