Prior research documents that many investors disproportionately hold on to losing stocks while selling stocks which have gained in value. This systematic behavior is labeled the quot;disposition effectquot;. The phenomenon can be explained by prospect theory's idea that subjects value gains and...

This paper reports the results of 13 experimental asset markets with 161 subjects that explore the effects of liquidity and aggregation of information with and without insider trading. Compared to most financial market experiments, reality is met by introducing long-living assets and integrating...

This paper reports the results of 18 experimental asset markets with 262 subjects that explore the effects of liquidity and aggregation of information. The main focus lies on the comparison of different trading mechanisms of stock exchanges. Compared to most of financial markets experiments,...

Prior research documents that many investors disproportionately hold on to losing stocks while selling stocks which have gained in value. This systematic behavior is labeled the quot;disposition effectquot;. The phenomenon can be explained by prospect theory's idea that subjects value gains and...

The valuation of credit derivatives has for a long time been based on the assumption of default free counterparties. However, credit derivatives are not traded at an exchange and less than half of the OTC market participants are rated “A” or above. Hence, the consideration of counterparty...