Thar 'She' Blows? Gender, Competition, and Bubbles in Experimental Asset Markets

Posted: 31 May 2013 Last revised: 5 Apr 2016

See all articles by Catherine C. Eckel

Catherine C. Eckel

Texas A&M University

Sascha Füllbrunn

Radboud University Nijmegen - Institute for Management Research

Date Written: May 27, 2013

Abstract

Do women and men behave differently in financial asset markets? Our results from an asset market experiment using the Smith, Suchaneck, and Williams (1988) framework show marked gender difference in producing speculative price bubbles. Using 35 markets from different studies, a meta-analysis confirms the inverse relationship between the magnitude of price bubbles and the frequency of female traders in the market. Women’s price forecasts also are much lower, even in the first period. Additional analysis shows the results are not due to differences in risk aversion, personality, or math skills. Implications for financial markets and experimental methodology are discussed.

Keywords: asset market, bubble, experiment, gender

JEL Classification: C91, G02, G11, J16

Suggested Citation

Eckel, Catherine C. and Füllbrunn, Sascha, Thar 'She' Blows? Gender, Competition, and Bubbles in Experimental Asset Markets (May 27, 2013). American Economic Review, Vol. 105, No. 2, 2015. Available at SSRN: https://ssrn.com/abstract=2271873 or http://dx.doi.org/10.2139/ssrn.2271873

Catherine C. Eckel

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

Sascha Füllbrunn (Contact Author)

Radboud University Nijmegen - Institute for Management Research ( email )

PO Box 9108
Nijmegen, 6500 HK
Netherlands

HOME PAGE: http://www.ru.nl/english/people/fullbrunn-s/

Register to save articles to
your library

Register

Paper statistics

Abstract Views
2,462
PlumX Metrics