Providing a historical appraisal of bubble investments, and blending theory with field observations, this insightful work will benefit academics, researchers and professionals observing the nexus of relationships between speculation, states and markets. The book presents an analysis of the development and decline of investment bubbles and helps develop the models that inform the risk assessment of bubble behaviour. By identifying particular trends and consequences, the book presents insight into the operation of speculative activity and its social, economic and political repercussions.
Contents: Introduction; Pascal and the gambler: the theory of speculative advantage; Fear and risk: without a net; Action and reaction: the psychology of bubbles; Tulipomania: bubbles, mysteries and cycles; The South Sea bubble: from the Mississippi to the high seas; Bubbles in the near past; Electronic bubbles: dotcoms and telecoms; The role of institutions and the response to malfeasance; Rhythms and interventions: studying the ebbs and flows of bubbles; Reflections and recriminations: the end of all bubbles?; Bibliography; Index.