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oTree: The bubble game

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  • Huber, Christoph

Abstract

Bubbles and speculative behavior have been documented in real-world and experimental asset markets alike. Moinas and Pouget (2013) introduce the bubble game representing a sequential market with both bubble and no-bubble equilibria, in which speculative behavior can be analyzed using concepts from game theory. This article presents a ready-to-use software application for oTree (Chen et al., 2016) which allows to easily conduct the game in various settings within a modern web-programming framework. Researchers can adapt the game to their needs in a straightforward way by modifying thoroughly-documented variables in a single file. The software module supports responsive graphical designs and is prepared for multilingual use on any device with a web browser, allowing the implementation in the field, the laboratory, the classroom, or online.

Suggested Citation

  • Huber, Christoph, 2019. "oTree: The bubble game," Journal of Behavioral and Experimental Finance, Elsevier, vol. 22(C), pages 3-6.
    • Handle: RePEc:eee:beexfi:v:22:y:2019:i:c:p:3-6
    DOI: 10.1016/j.jbef.2018.12.001
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    References listed on IDEAS

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    1. Sophie Moinas & Sébastien Pouget, 2016. "The bubble game: A classroom experiment," Southern Economic Journal, John Wiley & Sons, vol. 82(4), pages 1402-1412, April.
    2. Brunnermeier, Markus K. & Oehmke, Martin, 2013. "Bubbles, Financial Crises, and Systemic Risk," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, volume 2, chapter 0, pages 1221-1288, Elsevier.
    3. Holzmeister, Felix, 2017. "oTree: Ready-made apps for risk preference elicitation methods," Journal of Behavioral and Experimental Finance, Elsevier, vol. 16(C), pages 33-38.
    4. Sophie Moinas & Sebastien Pouget, 2013. "The Bubble Game: An Experimental Study of Speculation," Econometrica, Econometric Society, vol. 81(4), pages 1507-1539, July.
    5. Chen, Daniel L. & Schonger, Martin & Wickens, Chris, 2016. "oTree—An open-source platform for laboratory, online, and field experiments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 9(C), pages 88-97.
    6. Smith, Vernon L & Suchanek, Gerry L & Williams, Arlington W, 1988. "Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets," Econometrica, Econometric Society, vol. 56(5), pages 1119-1151, September.
    7. Hong, Jieying & Moinas, Sophie & Pouget, Sébastien, 2018. "Learning in Speculative Bubbles: An Experiment," TSE Working Papers 18-882, Toulouse School of Economics (TSE).
    8. Tom Engsted, 2016. "Fama On Bubbles," Journal of Economic Surveys, Wiley Blackwell, vol. 30(2), pages 370-376, April.
    9. repec:wly:soecon:v:82:4:y:2016:p:1402-1412 is not listed on IDEAS
    10. Stefan Palan, 2013. "A Review Of Bubbles And Crashes In Experimental Asset Markets," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 570-588, July.
    11. Holzmeister, Felix & Pfurtscheller, Armin, 2016. "oTree: The “bomb” risk elicitation task," Journal of Behavioral and Experimental Finance, Elsevier, vol. 10(C), pages 105-108.
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    Cited by:

    1. Andraszewicz, Sandra & Friedman, Jason & Kaszás, Dániel & Hölscher, Christoph, 2023. "Zurich Trading Simulator (ZTS) — A dynamic trading experimental tool for oTree," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
    2. Hoyer, Karlijn & Zeisberger, Stefan & Breugelmans, Seger M. & Zeelenberg, Marcel, 2023. "A culture of greed: Bubble formation in experimental asset markets with greedy and non-greedy traders," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 32-52.

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