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Time pressure reduces financial bubbles: evidence from a forecasting experiment

Mikhail Anufriev et al.

Experimental Economics2026https://doi.org/10.1017/eec.2025.10037article
AJG 3ABDC A*
Weight
0.50

Abstract

We investigate whether time pressure exacerbates or mitigates bubbles in laboratory experiments. We find that under high time pressure price volatility is lower and market prices are closer to their fundamental value. This is due to participants using simpler adaptive forecasting strategies, instead of the self-reinforcing extrapolative expectations that they use under low time pressure, and which are conducive to the emergence of bubbles. In addition, by substantially increasing the number of decision periods in our experiment, we find that in the long run prices tend to converge to their fundamental value, also in the absence of time pressure.

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https://doi.org/https://doi.org/10.1017/eec.2025.10037

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@article{mikhail2026,
  title        = {{Time pressure reduces financial bubbles: evidence from a forecasting experiment}},
  author       = {Mikhail Anufriev et al.},
  journal      = {Experimental Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1017/eec.2025.10037},
}

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Time pressure reduces financial bubbles: evidence from a forecasting experiment

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.