decreases investment substantially. Theseresults are neither in line with expected utility theory norwith psychologically …This paper experimentally investigates investment behavior.We find that global risk – i.e. risk independent of an agent …’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment …

cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm's investment is … increasing prevention. We determine the investment in safety under No Liability, Strict Liability and Negligence, and compare it … the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence …

I study how different types of subsidization affect investment decisions in a laboratory experiment. Even though the … investment alternatives get subsidized with tax credits the willingness to invest in the subsidized alternative increases …

It is well-known that taxes affect risky investment decisions. Analytical studies indicate that tax rate increases can … foster (accelerate) investment if there is flexibility, in particular when an exit option is available. We design an … underlying model, we find accelerated investment, which is often considered as an increased willingness to invest, on tax rate …