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dc.contributor.authorButler, David
dc.contributor.authorCheung, Stephen
dc.contributor.editorGigi Foster
dc.date.accessioned2019-05-29T13:07:53Z
dc.date.available2019-05-29T13:07:53Z
dc.date.issued2019
dc.identifier.isbn9780128130926
dc.identifier.doi10.1016/B978-0-12-813092-6.00003-4
dc.identifier.urihttp://hdl.handle.net/10072/382546
dc.description.abstractAsset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to animal spirits or irrational exuberance, their source remains imperfectly understood. Experimental methods can isolate systematic deviations from an asset’s fundamental value in a manner not possible on the trading floor. In this chapter, we review evidence from dozens of laboratory experiments that investigate the measurement and manipulation of an array of psychological and biophysical attributes. Measures of emotion self-regulation and interoceptive ability are informative, as is cognitive ability, and the level and fluctuation of hormones. Rules that promote deliberative decision making can improve market efficiency, while incidental emotions can impair it. Signals in specific brain areas can be a trigger precipitating a bubble’s collapse. We conclude that trading decisions are profoundly biophysical in a manner not captured by efficient markets models, and close with speculations on implications for algorithmic trading.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherElsevier (Academic Press)
dc.publisher.placeUnited Kingdom
dc.relation.ispartofbooktitleBiophysical Measurement in Experimental Social Science Research
dc.relation.ispartofchapter7
dc.relation.ispartofchapternumbers9
dc.relation.ispartofpagefrom167
dc.relation.ispartofpageto196
dc.subject.fieldofresearchExperimental economics
dc.subject.fieldofresearchFinancial economics
dc.subject.fieldofresearchcode380106
dc.subject.fieldofresearchcode380107
dc.titleMind, Body, Bubble! Psychological and Biophysical Dimensions of Behavior in Experimental Asset Markets
dc.typeBook chapter
dc.type.descriptionB2 - Chapters (Other)
dc.type.codeB - Book Chapters
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.hasfulltextNo Full Text
gro.griffith.authorButler, David


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