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 …

We describe a multiproduct barter trading experiment in which students exchange real goods in an open market based on … their own personal preference. The experiment is designed for simulating a pure exchange market in order to demonstrate the …