# Bubble

An economic bubble is a phenomenon in markets created by herd mentality, whereby people hear stories of others who bought in early and made big profits, causing those who did not buy to feel a fear of missing out. This causes irrational pricing of the asset which proceeds until the mania subsides.

Attempting to time the market on bubbles is a [zero-sum-game](zero-sum-game.md) and has a negative [expected-return](expected-return.md).

## Examples

* South Sea Bubble
* Beanie Baby Bubble
* London Rail Bubble
* Tulip Mania
* Dot-com Bubble
* Japanese Real Estate Bubble
* [Cryptoasset](cryptoasset.md) Bubble

## References

* [@mackay_extraordinary_2012]
* [@bernstein_delusions_2021]
* [@blanchard_bubbles_1982]
* [@fry_negative_2016]