Skip to main content
Article
Asset legitimacy in experimental asset markets
The Journal of Behavioral Finance
  • Debapriya Jojo Paul, University of New South Wales
  • Julia Henker, Bond University
  • Sian Owen, University of New South Wales
Date of this Version
4-1-2015
Document Type
Journal Article
Publication Details

Citation only

Paul, D.J., Henker, J., & Owen, S. (2015). Asset legitimacy in experimental asset markets. Journal of Behavioral Finance, 16(2), 183-198.

Access the journal

Copyright © The Institute of Behavioral Finance

2015 HERDC submission

Abstract
We investigate whether prices in experimental asset markets behave differently when participants are required to trade with earned wealth compared to unearned wealth. Unearned endowed wealth, the standard practice in experimental studies of asset price bubbles, may elicit greater than normal risk-seeking behavior. We test for this altered behavior by requiring some participants to earn their initial market allocation. We do not find a significant difference in the frequency, severity, or duration of mispricing between earned and unearned endowments. Our results confirm the validity of the existing methodologies used in the study of bubbles in experimental settings.
Citation Information
Debapriya Jojo Paul, Julia Henker and Sian Owen. "Asset legitimacy in experimental asset markets" The Journal of Behavioral Finance Vol. 16 Iss. 2 (2015) p. 183 - 198 ISSN: 1542-7560
Available at: http://works.bepress.com/julia_henker/21/