| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059874 | Economics Letters | 2012 | 4 Pages |
Abstract
In this note we show at the example of an experimental stock market, conducted on the occasion of the World Soccer Championship 2010 in South Africa, how tournament incentives might contribute to the formation of asset price bubbles.
Graphical abstractDownload full-size imageDownload full-size imageHighlights⺠An experimental stock market was conducted on the occasion of the Soccer World Cup. ⺠On this market a bubble evolved as a consequence of communication and strong tournament incentives. ⺠The bubble was driven by numerous new traders attracted by a news headline. ⺠The stock price of Germany rose by 20% within minutes. ⺠Coincident fundamentals would have suggested just the opposite direction.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Michael Berlemann, Henning Vöpel,