Vernon Smith and Experiments Concerning Stock Market Bubbles
Vernon Smith and his stock market experiments are featured in an article in this week's issue (November 10, 2003) of Forbes----Professor Bubble.
However, I scooped Forbes. You first read about it in my 7/4/03 blog post as noted below.
7/4/03. This week I had the opportunity to sit in on three mornings of conversations between Vernon Smith and a group of teachers.
It is nice to have an economist recognize that we don't always make the economic choices that maximize our economic benefits.
His Stock Market Experiment. After losing two times, participants were ready to consider the underlying fundamental value of the asset. His experiments, Bubbles and Crashes, are explained in detail here and here.
With experience, after bubbles and crashes, investors will finally look at fundamentals. So, it seems to me, it would save a lot of hassle, anxiety, and losses if investors would just do fundamental analysis ---chapters 8 through 13---at the beginning.
This picture is from my blog of 6/20/03. Vernon Smith is the gentleman in the middle.
9:34:53 PM 
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