Expectations and bubbles in asset market experiments

This thesis presents laboratory experiments to examine various aspects of bubble formation in asset markets. The experimental approach provides a controlled environment that allows for studying the interaction between individual expectations, group behavior and market outcomes. The experiments investigate the impact of group size in experimental asset markets, the efficacy of monetary policy aimed at deflating asset price bubbles, and the influence of past experiences with bubbles on future market dynamics. The goal of the thesis is to gain insight into how expectations are formed and when these expectations lead to the stabilization or destabilization of asset markets, and to explore if policy interventions can improve individual and aggregate behavior.