Do Females Always Generate Small Bubbles? Experimental Evidence from U.S. and China

Abstract

We report data from double-auction experiments in China and the U.S. using groups of exclusively females, exclusively males and mixed gender participants. We find that female groups in China generate price bubbles statistically identical to those produced by exclusively male groups in both China and the U.S., all of which are significantly larger than the bubbles produced by exclusively female groups in the U.S. Our results suggest that gender differences in financial markets may be sensitive to culture.

Keywords: Gender differences, Bubbles, Experimental asset markets, Culture differences

JEL Classification: G01, G11, J16, Z13