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Kaivik: A Free Online Asset Market Cellphone Interface Experiment with Financial Bubbles

Author

Listed:
  • Kyle Hampton

    (Department of Economics, University of Alaska Anchorage)

  • Paul Johnson

    (Department of Economics, University of Alaska Anchorage)

Abstract

The authors present Kaivik, a free online asset auction classroom experiment platform that works with cellphones. Students use cellphones to trade units of a financial asset (shares in a single company) by submitting bid and ask prices plus the number of asset units they are offering to buy or sell per transaction. In this "order book" system the liquidity of the asset market at any point in time is variable. Trading can generate asset market bubbles. Instructors set key experiment parameters. Results are recorded and can be presented on a screen for discussion. Students are given an experiment report template to complete.

Suggested Citation

  • Kyle Hampton & Paul Johnson, 2021. "Kaivik: A Free Online Asset Market Cellphone Interface Experiment with Financial Bubbles," Working Papers 2021-04, University of Alaska Anchorage, Department of Economics.
    • Handle: RePEc:ala:wpaper:2021-04
    as

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    File URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA202104.pdf
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    References listed on IDEAS

    as
    1. Sheryl B. Ball & Charles A. Holt, 1998. "Classroom Games: Speculation and Bubbles in an Asset Market," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 207-218, Winter.
    2. Robert J. Shiller, 2010. "How Should the Financial Crisis Change How We Teach Economics?," The Journal of Economic Education, Taylor & Francis Journals, vol. 41(4), pages 403-409, September.
    3. AJ A. Bostian & Charles A. Holt, 2009. "Price Bubbles with Discounting: A Web-Based Classroom Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 40(1), pages 27-37, January.
    4. Sophie Moinas & Sébastien Pouget, 2016. "The bubble game: A classroom experiment," Southern Economic Journal, John Wiley & Sons, vol. 82(4), pages 1402-1412, April.
    5. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70(2), pages 111-111.
    6. repec:wly:soecon:v:82:4:y:2016:p:1402-1412 is not listed on IDEAS
    7. Smith, Vernon L & Suchanek, Gerry L & Williams, Arlington W, 1988. "Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets," Econometrica, Econometric Society, vol. 56(5), pages 1119-1151, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic Education and Teaching of Economics; Portfolio Choice; Investment Decisions; Financial Bubbles; Asset Markets; Information and Market Efficiency;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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