I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers' perception of a "fair wage" may depend on their previous wage, their reference point. Using a laboratory experiment, I...

I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers' perception of a “fair wage” may depend on their previous wage, their reference point. Using a laboratory experiment,...

Predominant finance theories by academics suggest that achieving consistent outsized returns in the stock market is not possible because the market is efficient. Can legal insider trading disclosure data reported to the SEC provide an effective tool for identifying investments?

This study investigates experimentally the disclosure of verifiable information in settings with and without seller competition. Sellers often choose to report a selected set of information and buyers account for this – even though not fully – by bidding skeptically. As expected, competition...