Archive for 2009-03-17

Bubbles 2: Glubba glubba in the puddles

(Random topic courtesy of Dressy Bessy) A couple more thoughts on Sunday’s post. In comments, Brendan Scott asks “Why would a trader extrapolate against their estimate v valuation?” But there’s actually a broader question — why would anyone trade at all? The initial scenario provided infinite supply at $500 per item, and gave a randomly […]