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projects to several managers can not only reduce overload costs, but also reduce the moral hazard problem of external financing …
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A recent theory by Gennaioli, Shleifer, and Vishny (2015) proposes that trust is an important component for delegated … investing. This paper tests the theory in a laboratory experiment. Participants first play a trust game. Participants then act … increasing in the difference in trustworthiness of the two money managers. This finding is robust to different specifications of …
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The tendency of humans to shy away from using algorithms - even when algorithms observably outperform their human counterpart - has been referred to as algorithm aversion. We conduct an experiment to test for algorithm aversion in financial decision making. Participants acting as investors can...
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Asset owners (principals) typically do not manage their own investments and leave this job to delegated managers …
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