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Hens, Thorsten; Vogt, Bodo - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

Based on an experimental analysis of a simple monetary economy we argue that a monetary system is more stable than one would expect from individual rationality. Weshow that positive reciprocity stabilizes the monetary system, provided everyparticipant considers accepting money as a reasonable...

Persistent link: https://www.econbiz.de/10005858586

Declining Valuations and Equilibrium Bidding in Central Bank Refinancing Operations

Christian Ewerhart; Nuno Cassola; Natacha Valla - Institut für Schweizerisches Bankwesen <Zürich> - 2007

and the development of interest rate spreads. To explain these observations, we considera standard divisible-good auction …

Persistent link: https://www.econbiz.de/10005858044

Why Government Bonds are sold by Auction and Corporate Bonds by Posted-Price Selling

Habib, Michel A.; Ziegler, Alexandre - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

information. No such prevention is possible in the case of an auction. Clearly, a discount is costly to the seller. We establish …

Persistent link: https://www.econbiz.de/10005858705

The Emergence of Information Sharing in Credit Markets

Brown, Martin; Zehnder, Christian - Institut für Schweizerisches Bankwesen <Zürich> - 2007

We examine how asymmetric information and competition in the credit market affect voluntary information sharing between lenders. We study an experimental credit market in which information sharing can help lenders to distinguish goodborrowers from bad ones, because borrowers may exogenously...

Persistent link: https://www.econbiz.de/10005858065

The Leverage Effect without Leverage: An Experimental Study

Hens, Thorsten; Steude, Sven C. - Institut für Schweizerisches Bankwesen <Zürich> - 2006

Experimental stock markets are used to add some more evidence that Blacks (1976) leverage effect in financial markets does not necessarily stem from the financial leverage of the firm. We surprisingly find a large number of markets in which the leverage effect is observed although the underlying...

Persistent link: https://www.econbiz.de/10005858378

On the Micro-foundations of Money : The Capitol Hill Baby-Sitting Co-op

Hens, Thorsten; Schenk-Hoppe, Klaus Reiner; Vogt, Bodo - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

This paper contributes to the micro-foundation of money in centralizedmarkets with idiosyncratic uncertainty. It shows existence of stationarymonetary equilibria and ensures that there is an optimum quantity ofmoney. The rational solution of our model is compared with actual be-havior in a...

Persistent link: https://www.econbiz.de/10005858589

Soft landing of a stock market bubble : An experimental study

Becker, Ralf; Fischbacher, Urs; Hens, Thorsten - Institut für Schweizerisches Bankwesen <Zürich>; … - 2007

experimental stock markets. In a series of experiments, participants trade an asset over 15 periods. Alternatively, the …

Persistent link: https://www.econbiz.de/10005859101

Coordination in a Repeated Stochastic Game with Imperfect Monitoring

Gerber, Anke; Hens, Thorsten; Vogt, Bodo - Institut für Schweizerisches Bankwesen <Zürich>; … - 2006

We explain excess volatility, short-term momentum and long-term reversal of asset prices by a repeated game version of Keynes beauty contest. In every period the players can either place a buy or sell order on the asset market. The actual price movement is determined by average market orders and...

Persistent link: https://www.econbiz.de/10005859323

Limited Rationality and Strategic Interaction : The Impact of the Strategic Environment on Nominal Inertia

Fehr, Ernst; Tyran, Jean-Robert - Institut für Schweizerisches Bankwesen <Zürich>; … - 2002

The evidence from many experiments suggests that people are heterogeneous with regard to their abilities to make … important economic problem the adjustment of nominal prices after an anticipated money shock. Our experiments show that when … because price expectations are very flexible under substitutability and very sticky under complementarity. Our results suggest …

Persistent link: https://www.econbiz.de/10005859327

Will investors adapt their investment behavior whenfaced with a change in information feedback and investmentflexibility?

Zeisberger, Stefan; Langer, Thomas; Weber, Martin - Institut für Schweizerisches Bankwesen <Zürich> - 2011

Assuming investors are loss averse, repeated risky investments are less attractive inmyopic evaluation. A theoretical foundation for this effect is given by the behavioralconcept of myopic loss aversion (MLA). The consequences of MLA have been confirmedin several between-subject experimental...

Persistent link: https://www.econbiz.de/10009354101