This discussion paper resulted in a publication in the <A href="http://www.sciencedirect.com/science/article/pii/S0167487010000929">'Journal of Economic Psychology'</A>, 31(6), 964-84.<P>In repeated number guessing games choices typically converge quickly to the Nash equilibrium. In positive expectations feedback experiments, however, convergence to the equilibrium price tends...</p></a>

We investigate expectation formation in a controlled experimental en-vironment. Subjects are asked to predict the price in a standard asset pricingmodel. They do not have knowledge of the underlying market equilibrium equa-tions, but they know all past realized prices and their own predictions....