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Investor experience and information do not discourage asset price bubbles

Kopányi-Peuker, Anita and Weber, Matthias (2022) Investor experience and information do not discourage asset price bubbles. LSE Business Review (19 Jan 2022). Blog Entry.

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Abstract

It is often believed that markets with more experienced investors exhibit fewer bubbles. The same is believed of markets where investors have additional information about fundamentals. Anita Kopányi-Peuker and Matthias Weber provide evidence that these beliefs are not necessarily true. In contrast, bubbles may rise faster in markets with more experienced investors. This is in line with a model in which naïve investors extrapolate trends, which sophisticated investors take into account when making decisions.

Item Type: Online resource (Blog Entry)
Official URL: https://blogs.lse.ac.uk/businessreview/
Additional Information: © 2022 The Author(s)
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Date Deposited: 25 Mar 2022 15:48
Last Modified: 25 Mar 2022 15:48
URI: http://eprints.lse.ac.uk/id/eprint/114111

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