We study the role of stress induced by time constraints on investors’ decision making. The need to perform contemporaneous tasks and external interference such as arriving unexpectedly late to work, might exacerbate acute stress and its impact on decision making. Accumulated laboratory...

Psychological evidence predicts that sunny weather is associated with an upbeat mood. Although standard economic theory presumes invariant preferences and full rationality, the finance literature has documented a strong relationship between morning sunshine in the city of a country's stock...

The Braess' Paradox (Braess (1968)) exhibits, counterintuitively, that adding capacity to a noncooperative network may reduce its overall performance. Using an analogy between networks and production economies, we demonstrate that an improvement in the production technology of an intermediate...

Standard economic theory presumes invariant preferences. We refute this presumption on chronobiological grounds, documenting seasonal affective impact on investors' demand for Initial Public Offerings (IPOs). We find that seasonal mood substantially influences short-, mid-, and long-run IPO...

This article introduces the special issue Empirical Behavioral Finance in the Journal of Economic Behavior and Organization (Volume 107, Part B, November 2014). It includes the results of a survey among reviewers and authors into the relative importance of different types of research within the...

We address the role of impression on decisions to employ corporate job candidates. Specifically, we focus on the effect of phrasing the job candidate’s CV in the third person (passive voice), as opposed to the first person, on its readers’ impression and decisions regarding the candidate,...

We invoke the famous Louis XIV quote “L'État, c'est moi,” applying it to the corporate world, and introduce the novel idea that a self-serving bias, which we define as “I Am The Firm,” is infused within the culture of certain companies. We hypothesize that the owners of eponymous firms...

We investigate return patterns of lottery-type-stocks around FDA announcements regarding New-Drug-Applications (NDAs), Biological-Licensing-Applications (BLAs), and New-Molecule-Entities (NMEs). Focusing on post-event returns, we document negative abnormal returns (‘bio-run-down’) for the...

Empirically, mutual fund flows depend on past performance. It is unclear, however, whether this behavior is rational. Using the experimental approach we analyze behavior without confronting measurement problems of real data. We detect two anomalies: quot;Absolute Performance Effectquot; --...

Common wisdom in economics asserts that technological innovations in the production process of goods increase their supply and the demand for their inputs. We demonstrate that is not always necessarily the case. Specifically, we show that an improvement in the production technology of an...