ABSTRACT
The purpose of this chapter is to test how the entry of inexperienced subjects affects asset prices in an experimental double-auction asset market. We have run one session where 25 percent of the experienced subjects were replaced by inexperienced subjects in the fourth round. Our experimental data suggest that this replacement does not have a significant influence upon market price dynamics. Hence, we conjecture that a larger portion of inexperienced subjects may be needed for the market to exhibit larger bubbles and crashes than a market consisting of only experienced subjects.
