Speculation and Bubbles in an Asset Market

Speculation and Bubbles in an Asset Market (1998)

by Sheryl B. Ball , Charles A. Holt

Venue:	Journal of Economic Perspectives
Citations:	5 - 2 self

Datum	Value	Source
TITLE	Speculation and bubbles in an asset market	INFERENCE
AUTHOR NAME	Sheryl B. Ball	SVM HeaderParse 0.1
AUTHOR NAME	Charles A. Holt	SVM HeaderParse 0.1
ABSTRACT	This exercise puts students into a classroom market in which the assets being traded pay a fixed cash dividend each period. Discounting is induced by the fact that each asset unit has a one-sixth probability of failing and becoming worthless, which produces a "flat" fundamental value. Student traders earn money from dividends and capital gains (losses). The trading prices often rise above the fundamental value in a bubble, which is usually followed by a crash. The exercise stimulates a discussion of present value and market trading strategies.	user correction - Legacy Corrections
YEAR	1998	INFERENCE
VENUE	Journal of Economic Perspectives	INFERENCE
VENUE TYPE	JOURNAL	INFERENCE
PAGES	207--218	INFERENCE
VOLUME	12	INFERENCE
CITATIONS	3 found	ParsCit 1.0