Price Fads In Experimental Asset Markets

JAN PIETER KRAHNEN University of Frankfurt; Centre for Economic Policy Research (CEPR) CHRISTIAN RIECK SerCom IBM Global Services - General ERIK THEISSEN University of Bonn - Institute of Business Administration I

Abstract:

Previous research suggests that overpricing is a common phenomenon in experimental asset markets. We argue, however, that the experimental design, in particular the fundamental value which steadily declines in the course of the experiment, facilitates the emergence of overpricing. In our experiments a more "realistic" fundamental value process was employed. The results do not confirm the previous findings: positive and negative price deviations are equally likely and similar in magnitude. Mispricing seems to be more pronounced in call markets than in continuous auctions. Surprisingly, price and value expectations noted by experimental subjects do not help to explain the price deviations.

Facts on IBM Software

Version 2 of the ObjectGrid is currently under development for shipping in XD 6.0.1. It will add significant function to the component as well as widen JDK level support. The intent is to allow customers to build large grids of JVMs in to which they can connect applications and store objects at various qualities of service. The grid is being designed to scale to 1000s of JVMs and hold a large quantity of data.

Lotus was founded in 1982 by partners Mitch Kapor and Jonathan Sachs. Lotus' first product was presentation software for the Apple II known as Lotus Executive Briefing System. Soon after they produced a greatly improved version of VisiCalc for the PC, releasing 1-2-3 in January 1983. 1-2-3 not only beat a PC version of VisiCalc to market, but was also much more powerful. The name refered to the way the product could be used, or at least so they claimed, as a spreadsheet, word processor and database manager. In fact the later two functions were essentially unusable, but users were uninterested in these features anyway and used 1-2-3 as the most powerful spreadsheet available. Sales were huge.

Rational provides open, industry standard tools, best practices and services for developing business applications and building software products and systems, including embedded software for devices such as cell phones and medical systems.

This site is growing and will contain info on subjects like lotus note crm, websphere bpcs and rational choice theory.