There is extensive evidence documenting the economic consequences of discrimination patterns between individuals belonging to the same or different group identities. However, many group identities rely on convictions and beliefs that are non-observable, and therefore, might be uncertain. This...

In the context of supply function competition with private information, we test in the laboratory whether—as predicted in Bayesian equilibrium—costs that are positively correlated lead to steeper supply functions and less competitive outcomes than do uncorrelated costs. We find that the...

We design a laboratory experiment to test the importance of wealth as a channel for financial contagion across markets with unrelated fundamentals. Specifically, in a sequential global game, we analyze the decisions of a group of investors that hold assets in two markets. We consider two...

We study how inflated credit ratings affect investment decisions in bond markets using experimental coordination games. Theoretical models that feature a feedback effect between capital markets and the real economy suggest that inflated ratings can have both positive and negative real effects....

We examine the competition between a transparent exchange organized as a limit order book and an opaque dark pool in the presence of asymmetric information. We show that the coexistence of a dark pool with an exchange not only enlarges traders' strategy set but may also induce trading venue...

In a laboratory experiment with supply function competition and private information about correlated costs we study whether cost interdependence leads to greater market power in relation to when costs are uncorrelated in the ways predicted by Bayesian supply function equilibrium. We find that...

We study quality-enhancing R&D, price competition, and welfare in markets with asymmetric passive partial ownership (PPO) holdings. The asymmetries in PPOs generate a positive re-allocation effect which, in some cases, can increase consumer and total surplus in markets with no spillovers

We design a laboratory experiment to test the importance of wealth as a channel for financial contagion across markets with unrelated fundamentals. In a sequential global game,we analyze the decisions of a group of investors that hold assets in two markets. We considertwo treatments that vary...

In the context of supply function competition with private information, we test in the laboratory whether, as predicted in Bayesian equilibrium, costs that are positively correlated lead to steeper supply functions and less competitive outcomes than do uncorrelated costs. We find that the...

We study a market with competition in schedules, such as in asset auctions or wholesale electricity markets, with boundedly rational sellers that partially neglect the informational content of the price. Using the cursed equilibrium concept, we find that the unique symmetric linear equilibrium...