Behavioral economicsClassroom · multi-user
The Bubble Game — Speculation & Herding
Trade a single asset whose true value is fixed and known. Each round, buy, hold, or sell — and watch the price detach from fundamentals, climb on herd buying, then crash. A vivid lesson that 'the price went up' isn't the same as 'it's worth more'.
You’ll learn: See how an asset with a known value can trade far above it — driven by the hope of reselling to a greater fool — and why chasing a rising price is risky.
- Speculative bubbles
- Herding & the greater-fool theory
- Market (in)efficiency
- Fundamental value vs. price
Teacher guide
Students will learn to
- See a price detach from a known fundamental value, inflate, and crash.
- Feel the greater-fool pull: buying not because it's worth more, but because you expect to resell higher.
- Connect the price path to real bubbles, FOMO, and the risk of chasing rising prices.
Before the session — ask
- If everyone knows an asset is worth 20, could it still trade at 60? Why might someone pay that?
- What's the difference between 'the price went up' and 'it became more valuable'?
After the session — discuss
- How far did the price climb above the fundamental, and what happened at the end?
- Who ended up holding shares when the price crashed — and why did they buy so high?
- Where have you seen this pattern in real markets — crypto, housing, meme stocks?
Timing
- Briefing & the rules3–5 min
- Eight trading rounds8–12 min
- Debrief & discussion8–10 min
Run it with your class
Students join with a code or QR — no account needed. Teachers start a session from the dashboard.