Experimental Asset Pricing

Experimental Asset Pricing is a field within Experimental Finance that studies how individuals value and trade financial assets in controlled settings, like laboratory experiments. Researchers use these experiments to observe behaviors, such as how people react to information or market conditions, and how this impacts asset prices. By simulating market scenarios, they can identify patterns and anomalies in decision-making that challenge traditional financial theories. Ultimately, it helps us understand how psychological factors influence investment choices and market dynamics in the real world.