Motivated by the behavior of asset prices, trading volume and price volatility during historical episodes of asset price bubbles, we present a continuous time equilibrium model where overconfidence generates disagreements among agents regarding asset fundamentals. With short-sale constraints, an asset owner has an option to sell the asset to other overconfident agents when they have more optimi...

Using a novel proxy of investors’ speculative demand constructed from online search interest in “concept stocks”, we examine how speculative demand affects the returns and trading volume of Chinese stock indices. We find that returns and trading volume increase with the contemporaneous speculative demand. In addition, the high speculative demand causes lower near future returns, while recent hi...

Speculative execution attacks present an enormous security threat, capable of reading arbitrary program data under malicious speculation, and later exfiltrating that over microarchitectural covert channels. This paper proposes speculative taint tracking (STT), a high performance hardware mechanism to block these attacks. The main idea is it safe execute selectively forward the results instructi...

Ambiguous beliefs may lead to speculative trade and bubbles. We demonstrate this by showing that the classical Harrison Kreps (1978) example of among agents with heterogeneous can be replicated having common but ambiguous beliefs. More precisely, we show same asset prices pattern obtained in equilibrium agents' recursive multiple-prior expected utilities set priors. While learning about true pr...