Stock prices during British Railway Mania reveal surprising bubble pattern.
The British Railway Mania was a huge stock market bubble in the 1840s. This study looks at how the prices of railway company stocks changed during this time. They made a daily index of stock prices and checked if the new railways caused the bubble. The researchers wanted to see if the chance of railways becoming popular made stock prices go up. But they found that this wasn't the main reason for the bubble.