We report on a large number of laboratory market experiments demonstrating that a market
bubble can be reduced under the following conditions: 1) a low initial liquidity level, ie, less …

The spectacular rise of Bitcoin's price has attracted the attention of many, including
government regulators and speculators and those who wish to use a virtual currency, often …

The role of option markets is reexamined in the reversal process of stock prices following
stock price declines of 10% or more. A matched pair of optionable and nonoptionable firms …

Asset market experiments are analyzed by distinguishing participants who are net bidders
versus net offerers when the trading price is above fundamental value. We find evidence that …

This study applies the Caginalp and Balenovic (1999) model for asset flow dynamics to fully
collateralized stablecoins. The analysis provides novel insights on how trend-reversion and …

We investigate the optimal portfolio problem under the threat of a financial market crash in a
multidimensional jump-diffusion framework. We set up a nonprobabilistic crash model and …

One of the most striking results in experimental economics is the ease with which market
bubbles form in a laboratory setting and the difficulty of preventing them. This article re …

We present a methodology to study a data set of 119 260 daily closed-end fund prices using
mixed-effects regressions with the objective of understanding price dynamics. There is …

Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets
that exist only in electronic form, with no underlying value, offer the owners some protection …

Overreactions and other behavioral effects in stock prices can best be examined by
adjusting for the changes in fundamentals. We perform this by subtracting the relative price …