I investigate the behavior of individual investors in an experimental asset market that features a bubble. Subjects trade a risky asset at prices that do not change in response to their trades. The prices are taken from the outcome of a previous asset market experiment. This unique setup makes it possible to identify behavioral di¤erences between subjects who understand asset fundamentals and t...

Standard optimzing models of consumption postulate that consumption is a function of wealth and implicitly assume that wealth is comprised of assets whose market price coincides with the fundamental price, defined as the expected present value of future dividends. We use a simple theoretical framework to show that when the market price deviates from the fundamental price, consumption behavior w...

Copper-nickel sulfide ores are one of the main sources platinum. One ways to extract precious metals from such involves melting a concentrate in electric ore smelting furnaces, where melt is divided into matte and slag. Platinum generally concentrated matte; however, some it remains slag, thus leading metal losses. In order reduce platinum losses, forms these phases should be studied. It was fo...

We investigate the generality of the bubble and crash price pattern observed in previous asset market experiments. The deviation of prices from fundamental values can be explained by either a failure of subjects to backward induct, a learning effect, or some other explanation. We conduct experiments with a longer horizon – 200 periods – to find a possible reason for the timing of the crash. If ...

Asset prices and returns are known to vary signi®cantly more than output or aggregate consumption growth, and an order of magnitude in excess of what is justi®ed by innovations to fundamentals. We study excess price volatility in a lifecycle economy with two assets (claims on capital and a public debt bubble), heterogeneous agents, and increasing returns to ®nancial intermediation. We show that...

The round and arc-shaped formations are known in some galaxies, the Bubble complex (the Hodge object) in NGC 6946 being the most remarkable. The rim of the complex has a form of a regular arc in which a part of a hexagonal structure is embedded. A similar morphology is recognized in NGC 7421 galaxy, in that part of its rim which is leading in the galaxy motion through the intergalactic gas, as ...

We present a simple model of the macroeconomy that includes a role for an assetprice bubble, and derive optimal monetary policy settings for two policy-makers. The first policy-maker, a sceptic, does not attempt to forecast the future possible paths for the asset-price bubble when setting policy. The second policy-maker, an activist, takes into account the complete stochastic implications of th...

We develop a new asset price model where the dynamic structure of the asset price, after the fundamental value is removed, is subject to two different regimes. One regime reflects the normal period where the asset price divided by the dividend is assumed to follow a mean-reverting process around a stochastic long run mean. This latter is allowed to account for possible smooth structural change....