Investor experience and information do not discourage asset price bubbles

Item Type Newspaper
Abstract It is often believed that markets with more experienced investors exhibit fewer bubbles. The same is believed of markets where investors have additional information about fundamentals. We provide evidence that both is not necessarily true. In contrast, bubbles may rise faster in markets with more experienced investors. This is in line with a model in which naïve investors extrapolate trends, which sophisticated investors take into account when making decisions.
Authors Kopányi-Peuker, Anita & Weber, Matthias
Journal or Publication Title LSE Business Review
Language English
Subjects business studies
economics
behavioral science
finance
HSG Classification contribution to practical use / society
Date 19 January 2022
Official URL https://blogs.lse.ac.uk/businessreview/2022/01/19/...
Depositing User Prof. Dr. Matthias Weber
Date Deposited 28 Mar 2022 09:27
Last Modified 20 Jul 2022 17:48
URI: https://www.alexandria.unisg.ch/publications/266071

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Kopányi-Peuker, Anita & Weber, Matthias: Investor experience and information do not discourage asset price bubbles. In: LSE Business Review (2022),

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https://www.alexandria.unisg.ch/id/eprint/266071
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