Price Bubbles with Discounting: A Web-Based Classroom Experiment

Autor/inn/en	Bostian, AJ A.; Holt, Charles A.
Titel	Price Bubbles with Discounting: A Web-Based Classroom Experiment
Quelle	In: Journal of Economic Education, 40 (2009) 1, S.27-37 (11 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Educational Experiments; Investment; Free Enterprise System; Economics Education; Class Activities; Web Based Instruction; Undergraduate Study; Discussion (Teaching Technique) + Suchen Sie Ihr Suchwort? Schulversuch; Investments; Geldanlage; Investiton; Freie Wirtschaft; Wirtschaftskunde; Web Based Training; Grundstudium
Abstract	The authors describe a Web-based classroom experiment with two assets: cash and a stock that pays a random dividend. The interest rate on cash, coupled with a well-chosen final redemption value for the stock, induces a flat trajectory for the fundamental value of the stock. However, prices typically rise above this value during a session. The bubbles and crashes that occur in this experiment can stimulate a discussion of asset valuation, discounting, and pricing patterns that are determined by expectations and "animal spirits." (Contains 3 figures and 3 notes.) (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10