Research Symposium

BIO

Hayden Damelincourt is a freshman at Florida State University. Originally from Parkland, Florida, he is currently pursuing a Bachelor's degree in Finance and Real Estate. He is interested in pursuing a career in banking. Having received the Florida Bright Futures Scholarship, Hayden is committed to academic excellence. In the past, Hayden has conducted research on the use of emissions data to optimize cruise ship performance and sustainability, and he has also examined how dangerous behaviors among sports fans can be amplified during professional matches. During this semester, he conducted research with Dr. Mark Isaac on experimental economics and the development of market bubbles. Through this work, Hayden hopes to design his own experimental economics study that he can develop into a future research project. He is particularly interested in how experimental economics can test whether conventional economic theory translates into real-world asset markets. He also enjoys exploring how financial markets, behavioral economics, and real-world decision-making intersect. His interests include soccer, golf, and Star Wars.

Analyzing the Development of Market Bubbles in Experimental Economics​

Abstract

This paper is a literature review of market bubbles within sports betting and traditional trading markets. This research is being conducted to help gain insights into the activities of the current AI market bubble and how modern market bubbles are forming and acting. This research is relevant because with the new AI bubble and transforming market dynamics, it is essential to understand the potential outcomes and behaviors of the market to help mitigate any market crash and outcomes. In this research, we conducted labs and a literature review of past works on experimental economic market bubbles through mixed methods. We used data straight from past papers to act as precedents compared to past data. We also helped to conduct lab experiments within the testing lab for similar research, helping to gain a better grasping of the research process. Our results showed that market bubbles tend to occur regardless of past experiences, despite traders with experience. the mix of information and inside traders further adds to these spikes in markets. This means that with evolving market dynamics, crashes are likely to become increasingly common. Next steps are to further investigate these new market dynamics to further understand the modern market. The results of the study yield that market bubbles are ever present in modern trading markets. The implication of this research is that all these studies were tested in lab settings making it hard to perfectly replicate real trading markets.

Keywords: Economics, Experimental Economics, Assets, Markets, Finance