Asset prices can be much more volatile and detached from their true value because of speculative bubbles. These bubbles can lead to economic downturns when they burst. A study created a model showing how goods can carry bubbles, even if their value is not high, and why people still invest in them. Changes in the perceived risk of bubbles bursting can cause cycles of economic booms and busts, leading to asset prices that are much more unstable than the actual economy.