The Atlantic has a very interesting piece on discussing what experimental economics has to say about bubbles (via Knowledge Problem). Exactly what I wanted! I would like to see more popularization of experimental economics, especially with regards to what experimental economics has to say about bubbles.

Many people have suggested more economic regulation to ensure that this sort of crisis does not reoccur, and I find it totally plausible that regulation could improve outcomes by discouraging or limiting bubbles. However, without understanding the mechanism by which bubbles form, it is unlikely that we will stumble across regulation which actually does so, because the space of possible economic regulations is huge.

Much of this understanding will come from experimental economics (p=.7), because the formation of bubbles require non-rational behavior from at least some market participants, and it does not seem obvious exactly what sort of irrationality leads to bubbles and how it does so.