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Stock Market Quality in the Prescence of a Traded Option
de Jong, Cyriel; Koedijk, Kees; Schnitzlein, Charles - C.E.P.R. Discussion Papers - 2002
We use a controlled economic experiment to examine the implications of asymmetric information for informational linkages between a stock market and a traded call option on that stock. The setting is based on the Kyle model and Back (1993). We find that an insider trades aggressively in both the...
Persistent link: https://www.econbiz.de/10005789115
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A Theory of Fairness, Competition and Cooperation
Fehr, Ernst; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 1998
There is strong evidence that people exploit their bargaining power in competitive markets but not in bilateral bargaining situations. There is also strong evidence that people exploit free-riding opportunities in voluntary cooperation games. Yet, when they are given the opportunity to punish...
Persistent link: https://www.econbiz.de/10005504682
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Gender and Competition
Booth, Alison L - C.E.P.R. Discussion Papers - 2009
In almost all European Union countries, the gender wage gap is increasing across the wages distribution. In this lecture I briefly survey some recent studies aiming to explain why apparently identical women and men receive such different returns and focus especially on those incorporating...
Persistent link: https://www.econbiz.de/10005082540
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Social Identity and Preferences over Redistribution
Klor, Esteban F; Shayo, Moses - C.E.P.R. Discussion Papers - 2007
We design an experiment to study the effects of social identity on preferences over redistribution. The experiment highlights the trade-off between social identity concerns and maximization of monetary payoffs. Subjects belonging to two distinct natural groups are randomly assigned gross incomes...
Persistent link: https://www.econbiz.de/10005114256
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On Public Opinion Polls and Voters' Turnout
Klor, Esteban F; Winter, Eyal - C.E.P.R. Discussion Papers - 2006
This paper studies the effects that the revelation of information on the electorate's preferences has on voters' turnout decisions. The experimental data show that closeness in the division of preferences induces a significant increase in turnout. Moreover, for closely divided electorates (and...
Persistent link: https://www.econbiz.de/10005661831
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No Trade
Carrillo, Juan D; Palfrey, Thomas R - C.E.P.R. Discussion Papers - 2007
We investigate, in a simple bilateral bargaining environment, the extent to which asymmetric information can induce individuals to engage in exchange where trade is not mutually profitable. We first establish a no-trade theorem for this environment. A laboratory experiment is conducted, where...
Persistent link: https://www.econbiz.de/10005661979
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Budget Processes: Theory and Experimental Evidence
Ehrhart, Karl-Martin; Gardner, Roy J; Keser, Claudia; … - C.E.P.R. Discussion Papers - 2001
bottom-up budget process. We show, using structurally induced equilibrium theory, that this need not be the case. To test the … implications for budget processes of structurally induced equilibrium theory, we conduct a series of experiments. The evidence from … these experiments supports the predictions of structurally induced equilibrium theory, both at the aggregate and at the …
Persistent link: https://www.econbiz.de/10005662099
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Strategic Asset Allocation in Money Management
Basak, Suleyman; Makarov, Dmitry - C.E.P.R. Discussion Papers - 2011
Money managers behave strategically when competing for fund flows within relatively small groups. We study strategic interaction between two risk-averse managers in continuous time, characterizing analytically their unique equilibrium dynamic investments. Driven by chasing and contrarian...
Persistent link: https://www.econbiz.de/10009144728
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Laws and Norms
Bénabou, Roland; Tirole, Jean - C.E.P.R. Discussion Papers - 2011
), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and … social norms arise from individuals’ behaviors and inferences, and how they interact with material incentives. It then … also what shapes social judgements and moral sentiments. Setting law thus means both imposing material incentives and …
Persistent link: https://www.econbiz.de/10009371470
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Incentive and Insurance Effects of Tax Financed Unemployment Insurance
Andersen, Torben M - C.E.P.R. Discussion Papers - 2010
The potential distortions of job-search incentives caused by unemployment benefits and their financing are well known … (incentives) and equity (insurance). This implies that an increase in both benefits and the tax rate up to some point may increase …
Persistent link: https://www.econbiz.de/10008677233