text: Olivier Blanchard and Mark Watson showed how these phenomena can occur among rational actors if the transversality condition does not hold.
full_question: Olivier Blanchard and Mark Watson showed how these phenomena can occur among rational actors if the transversality condition does not hold. A 1720 law in England tried to prevent these phenomena by outlawing all unchartered joint-stock companies. Vernon Smith's experiments studying these things found they continued to exist even when subjects were completely informed. An example of these phenomena occurred when John Law sold stock for his Mississippi Company. Robert Walpole became prime minister during a financial crisis caused by the aftermath of one of these. A high P/E ratio may be evidence for them. One of these phenomena existed in the US housing market before 2007, and the "dot-com" one ended in the early 2000s. For 10 points, name these phenomena in which an asset's price greatly exceeds its fundamental value until a "burst."
first_sentence: Olivier Blanchard and Mark Watson showed how these phenomena can occur among rational actors if the transversality condition does not hold.
raw_answer: bubbles