# trade: positive effects of bubbles during innovations

AA << study is the first to look at the occurrence of bubbles in association with a large set of specific innovations introduced across two centuries, and to measure bubbles using statistical tests. [AA] are also the first to show that firms can benefit from bubbles driven by innovation. This is in contrast to the conventional thinking that that bubbles are detrimental that have few, if any, positive effects. >>

Ashley Kilgore. Innovation and speculation drive stock market bubble activity, according to new study. Institute for Operations Research and the Management Sciences.  Aug 1, 2018.

https://m.phys.org/news/2018-08-speculation-stock.html

<< Using a sample of 51 major innovations introduced between 1825 and 2000, [AA] test for bubbles in the stock prices of parent firms subsequent to the commercialization of these innovations. [AA] identify bubbles in 73% of the cases. >>

Alina Sorescu, Sorin M. Sorescu, et al. Two Centuries of Innovations and Stock Market Bubbles. Marketing Science 37 (4) Jul 16, 2018 doi: 10.1287/mksc.2018.1095

https://pubsonline.informs.org/doi/abs/10.1287/mksc.2018.1095