• Media type: E-Book
  • Title: Trivial Fundamentals Are Not Trivial : Experiments on Assets with Non-positive Fundamental Values
  • Contributor: Bao, Zhengyang [Author]; Leibbrandt, Andreas [Author]
  • Published: [S.l.]: SSRN, [2022]
  • Extent: 1 Online-Ressource
  • Language: English
  • DOI: 10.2139/ssrn.4016440
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 24, 2022 erstellt
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  • Description: This experimental study investigates the trading of assets that lack positive fundamental values (FV). We randomize groups of traders into asset markets where the FV of assets is either positive, zero, or negative. The data indicates the presence of more severe overpricing in markets with non-positive FV assets than in those with positive FV assets, with assets generating either risky or risk-free cashflows. We show that these findings are consistent with trader expectations but not with loss aversion and complexity. This study provides experimental evidence supporting the need to scrutinize markets with assets that have no positive FV
  • Access State: Open Access