We examine firm managers' incentives to commit fraud in a model where firms seek funding from investors and investors … can monitor firms at a cost in order to get more precise information about firm prospects. We show that fraud incentives … funded without committing fraud, whereas in bad times investors are more vigilant and it is harder to commit fraud …

experiment with more than 6000 subjects, including a subsample of 267 consultants from an international consulting firm. We also …) in the context of herding.-- information cascades ; herding ; network effects ; experiment ; internet …

interactive experiments in geographically separated subject pools. We apply ELD to an intercultural trust experiment with …