Behavior of Financial Markets under Experimental Economic Analysis

Abstract

Behavioral aspects play an important role, and an experimental analysis of financial markets allows studying the psychological and behavioral factors that are affecting participants. The aim of the article is to analyze the interaction of financial market participants in a controlled experimental environment in order to identify and reveal the peculiarities of their behavior, strategies and mutual influence. The information base of the research is official information and scientific publications. Research was conducted using the following methods: monographic; analysis, synthesis, induction, deduction; system analysis. Systematic changes in consumer demand, production and other spheres of economy determine not only household habits, but also affect decision-making by participants in economic relations. The identified calendar anomalies indicate that economic entities react to time factors and seasonal changes, which is important for management and forecasting strategies. Price bubbles are an expression not only of objective market conditions, but also of psychological and socio-cultural influences on the behavior of market participants. Understanding and predicting price bubbles requires a comprehensive approach that combines economic, psychological and social aspects. This will allow more accurate analysis and management of risks associated with price fluctuations and their possible consequences for economic stability. As part of the experimental economic analysis, it is found that calendar and seasonal effects play a significant role in the formation of economic trends. The study of the phenomenon of price bubbles and adaptive expectations in experimental economic analysis reveals deep structures of market dynamics.

Keywords

• finance
• behavior of markets
• behavioral economics
• experimental economic analysis