Price bubbles, gender, and expectations in experimental asset markets Charles A. Holt ,  Megan Porzio , Michelle Yingze Song
Abstract:
This paper reports results of laboratory markets for a risky asset with a “flat”fundamental value that equates expected dividends to the return on a safe asset. Subjects were sorted by gender in an unobtrusive manner, and bubbles in this setting are pervasive and of com- parable magnitude for both genders. In contrast, a robustness check done with a declining fundamental value did generate larger bubbles for groups of males. Elicited price fore- casts tend to trail share prices as they rise and exceed prices as they fall, a pattern that is tracked by a “double adaptive”forecasting model.