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- W1520942464 abstract "[Introduction] The remarkable phenomenon of bubbles and crashes in laboratory asset markets was firstdiscovered and reported in Smith et al (1988). Subsequent research inquired about the robustnessof the phenomenon and how it might be explained. One interpretation of the data is that publicknowledge of rationality is lacking in the subjects, which leads to a type of individually rational,bubble creating speculation as part of an attempt to acquire capital gains. A differentinterpretation is that subjects begin with a type of confusion or mistaken understanding about thisparticular environment and that such “irrationality” at the individual level initiates the bubble,which could be sustained by a lack of common knowledge of rationality even after all confusionbecomes removed during the process of participating in the market. This paper explores thesetwo ideas through the study of experiments in which a capital gains tax is imposed that makesspeculation for capital gains unprofitable except under extreme circumstances." @default.
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- W1520942464 date "2002-06-01" @default.
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- W1520942464 title "Asset Bubbles and Rationality: Additional Evidence from Capital Gains Tax Experiments" @default.
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