Tag Archives: Finance Bubbles
Postrel’s Corollary
One upshot of the experiments Virginia Postrel has described could be the following: the more investors believe behavioral economics to be true, the more likely bubbles will develop in markets trading in assets. As long as I’m overly confident in … Continue reading
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Not Irrational Exuberance But Irrepressible Effervescence
Meanwhile, Virginia Postrel has a fascinating article in the newest Atlantic on how bubbles develop in finance. She elucidates their nature by describing some recent findings in experimental economics. The nut: it turns out that even fully informed investors will … Continue reading
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