How high is the price we would pay for justice?

A sense of justice and injustice is an evolved moral emotion to signal to others that if exchanges are not fair there will be a price to pay. In the Ultimatum Game, in which one person is given a sum of money to divide with another person — with the stipulation that if the offer is accepted both keep the money, but if the offer is rejected no one gets any money — offers less than 30 percent of the sum are typically rejected. That is, we are willing to pay 30 percent to punish an offender. This is called moralistic punishment.

It would be of great value to investors if there were a good method to sense the oncoming of the end of a bubble. However, this would not apply to those who believe the bubble will have no end. Unfortunately, there does not seem to be any reliable process for sensing that the end is near. However, there does seem to be some indication that high volatility with wild swings upward and downward may presage the end of a stock bubble.