Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 9, 2021 erstellt
Description:
We study indefinitely-lived assets in experimental markets and find that the traded prices ofthese assets are on average about 40% of the risk neutral fundamental value. Neither uncertaintyabout the value of total dividend payments nor horizon uncertainty about the duration of tradecan account for this low traded price, while the temporal resolution of payoff uncertainty plays acrucial role. We show that an Epstein and Zin (1989) recursive preference specification togetherwith probability weighting can rationalize the low traded prices observed in our indefinitehorizon asset markets, while risk attitudes do not play such an important role