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Rankings and risk-taking in the finance industry

Kirchler, Michael; Lindner, Florian; Weitzel, Utz - 2016

Rankings are a pervasive feature of the finance industry. Although they have no direct monetary consequences, rankings provide utility for intrinsic (positive self-image) and extrinsic (status) reasons. We recruit a unique subject pool of 204 financial professionals and investigate how anonymous...

Persistent link: https://www.econbiz.de/10011417442

Second-Degree Moral Hazard in a Real-World Credence Goods Market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013 - This version: 16 October 2013

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard - the tendency of the supply...

Persistent link: https://www.econbiz.de/10010193289

Reveal it or conceal it : on the value of second opinions in a low-entry-barriers credence goods market

Bindra, Parampreet Christopher; Kerschbamer, Rudolf; … - 2020

Credence goods markets with their asymmetric information between buyers and sellers are prone to large inefficiencies. In theory, poorly informed consumers can protect themselves from maltreatment through sellers by asking for second opinions from other sellers. Yet, empirical evidence whether...

Persistent link: https://www.econbiz.de/10012220084

Monetary and social incentives in multi-tasking : the ranking substitution effect

Stefan, Matthias; Huber, Jürgen; Kirchler, Michael; … - 2020

Rankings are prevalent information and incentive tools in labor markets with strong competition for talent. In a dynamic model of multi-tasking and an accompanying experiment with financial professionals, we identify hidden ranking costs when performance in one task is incentivized and ranked...

Persistent link: https://www.econbiz.de/10012220112

The effect of priming on fraud: Evidence from a natural field experiment

Bindra, Parampreet Christopher; Pearce, Graeme - 2020

We present a natural field experiment designed to examine the extent to which priming can influence the behaviour of sellers in a real world market for credence goods. We employed 40 testers to take 600 taxi journeys in and around Vienna, Austria. Using a between-subject design we vary the...

Persistent link: https://www.econbiz.de/10012228204

Financial literacy, risk and time preferences : results from a randomized educational intervention

Sutter, Matthias; Weyland, Michael; Untertrifaller, Anna; … - 2020 - This version: 1 August 2020

We present the results of a randomized intervention in schools to study how teaching financial literacy affects risk and time preferences of adolescents. Following more than 600 adolescents, aged 16 years on average, over about half a year, we provide causal evidence that teaching financial...

Persistent link: https://www.econbiz.de/10012256256

Credence goods markets and the informational value of new media : a natural field experiment

Kerschbamer, Rudolf; Neururer, Daniel; Sutter, Matthias - 2019

Credence goods markets are characterized by pronounced informational asymmetries between consumers and expert sellers. As a consequence, consumers are often exploited and market efficiency is threatened. However, in the digital age, it has become easy and cheap for consumers to self-diagnose...

Persistent link: https://www.econbiz.de/10011980932

Incentives for dishonesty : an experimental study with internal auditors

Balafoutas, Loukas; Czermak, Simon; Eulerich, Marc; … - 2017 - This version: 20 April 2017

the nature of provided incentives. We conduct a 'lab in the field' experiment with internal auditors during two large … performance of the unit that they are auditing. We vary incentives in the experiment from individual (piece rate) to competitive … that incentive-based compensation increases dishonest behavior among internal auditors: competitive incentives lead to …

Persistent link: https://www.econbiz.de/10011639592

Co-managing common pool resources : do formal rules have to be adapted to traditional ecological norms

Vollan, Björn; Prediger, Sebastian; Frölich, Markus - 2013

We examine the effectiveness of three democratically chosen rules that alleviate the coordination and cooperation problems inherent in collectively managed common-pool resources. In particular we investigate how rule effectiveness and rule compliance depends on the prevailing local norms and...

Persistent link: https://www.econbiz.de/10009764816

Household decision making and the influence of spouses' income, education, and communist party membership : a field experiment in rural China

Carlsson, Frederik; Martinsson, Peter; Qin, Ping; … - 2009 - This version: 17 April 2009

We study household decision making in a high-stakes experiment with a random sample of households in rural China. Spouses have to choose between risky lotteries, first separately and then jointly. We find that spouses' individual risk preferences are more similar the richer the household and the...

Persistent link: https://www.econbiz.de/10009733209