Showing 1 - 10 of 361
Many decisions in economics and finance have to be made under severe time pressure. Furthermore, payoffs frequently depend on the speed of decision-making, like, for instance, when buying and selling stocks. In this paper, we examine the influence of time pressure and time-dependent incentive...
Persistent link: https://www.econbiz.de/10012737437
We study whether information about imminent future dividends can abate bubbles in experimental asset markets. Using the seminal design of Smith et al. (1988) we find that markets where traders are asymmetrically informed about future dividends have smaller, and shorter, bubbles than markets with...
Persistent link: https://www.econbiz.de/10012723138
We study the impact of advice or observation on the depth of reasoning in an experimental beauty-contest game. Both sources of information trigger faster convergence to the equilibrium. Yet, we find that subjects who receive naiuml;ve advice outperform uninformed subjects permanently, whereas...
Persistent link: https://www.econbiz.de/10012731034
Experimental studies on bidding in auctions have so far relied on individual bidders, even though teams are often involved in real auctions. We examine the bidding behaviour of individuals and teams. Our experimental results show that teams stay longer in an (ascending sealed-bid English)...
Persistent link: https://www.econbiz.de/10012757655
Peer effects arise in situations where workers observe each others’ work activity. In this paper we disentangle the effect of observing a peer from that of being observed by a peer, by setting up a real effort experiment in which we manipulate the observability of performance. In particular,...
Persistent link: https://www.econbiz.de/10010734336
We experimentally investigate the Jackson and Moselle (2002) model where legislators bargain over policy proposals and the allocation of private goods. Key comparative static predictions of the model hold with the introduction of private goods, including "strange bedfellow" coalitions. Private...
Persistent link: https://www.econbiz.de/10010735252
We examine whether the ‘Level-k’ model of strategic behavior generates reliable cross-game predictions within an individual. We find no correlation in subjects’ estimated levels of reasoning across two families of games. Furthermore, estimating a higher level for Ann than Bob in one family...
Persistent link: https://www.econbiz.de/10010877731
We investigate whether the perception of economy-wide inflation is affected by the frequency with which various goods׳ prices are observed. We provide novel experimental evidence that consumers׳ perceptions of aggregate inflation are systematically biased toward the perceived inflation rates...
Persistent link: https://www.econbiz.de/10011048571
I design and test a simple English auction and two English auctions with resale, but with different informational backgrounds. All three treatments theoretically have the same equilibrium. I find, however, that the possibility of resale alters behavior significantly. In the two treatments with...
Persistent link: https://www.econbiz.de/10009249711
We study auctions with resale based on Hafalir and Krishna's (2008) [6] model. As predicted, weak bidders bid more with resale than without, so that average auction prices tend to increase. When the equilibrium calls for weak types to bid higher than their values with resale they do, but not...
Persistent link: https://www.econbiz.de/10008860922