Tulipmania: How to Spot an Asset Price Bubble

Tulipmania: How to Spot an Asset Price Bubble

  • Case
  • Teaching Notes

Between December 1636 and February 1637, tulip bulbs were traded in Dutch towns at prices more than a hundred times their weight in gold. The reason was that buyers had come to expect that they would be able to resell them to other people at even higher prices. Expectations were eventually dashed, however, and many people were ruined financially. This episode, dubbed the Tulipmania, is a classic illustration of a recurring phenomenon—an asset price bubble in which there is a rapid and unsustainable increase in the price of a financial asset. This case study challenges readers to use Kindleberger and Aliber’s theory of asset price bubbles to identify factors that contributed to the mania.

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles