We report the results of an experiment designed to study whether or not having experienced booms and crashes in naturally occurring asset markets affects subjects’ trading behavior in the lab. Active investors in the Shanghai Stock Exchange were recruited to participate in either the Boom...

Trust is fragile. It is hard to build but easy to destroy. In this paper, we explore the fragility of trust in a stylized laboratory environment. We ask whether transgression outside a direct send-and-return relationship destroys trust and, if so, whether a competition against outsiders or an...

Empirical research has revealed some regularities regarding the innovation that takes place over the industry life-cycle. First, innovation is high when an industry is young and low when the industry matures, and second, product innovation decreases with industry maturity, while process...