The Role of the End Time in Experimental Asset Markets

45 Pages Posted: 22 Jul 2021 Last revised: 25 Apr 2022

See all articles by Anita Kopányi-Peuker

Anita Kopányi-Peuker

Radboud University Nijmegen - Department of Economics

Matthias Weber

University of St. Gallen - School of Finance; Swiss Finance Institute

Multiple version iconThere are 2 versions of this paper

Date Written: July 19, 2021

Abstract

By now there are hundreds of scientific articles on experimental asset markets. Almost all of these experiments use a short and definite horizon. This may be one of the starkest differences to financial asset markets outside the laboratory, which usually have indefinite and comparatively long horizons. We analyze the role of the end time in an asset market experiment in which we vary the length of the horizon and whether the end time is definite or indefinite. We find recurring bubbles and similar price dynamics in all treatments (with moderately lower prices in the treatments with a long horizon).

Keywords: Experimental finance; asset market experiments; time horizon; indefinite end time; bubbles.

JEL Classification: C92, G40, G41, D90

Suggested Citation

Kopányi-Peuker, Anita and Weber, Matthias, The Role of the End Time in Experimental Asset Markets (July 19, 2021). University of St.Gallen, School of Finance Research Paper No. 2021/12, Available at SSRN: https://ssrn.com/abstract=3889525. or http://dx.doi.org/10.2139/ssrn.3889525

Anita Kopányi-Peuker

Radboud University Nijmegen - Department of Economics ( email )

Nijmegen, 6500 HK
Netherlands

Matthias Weber (Contact Author)

University of St. Gallen - School of Finance ( email )

Unterer Graben 21
St.Gallen, CH-9000
Switzerland

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

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