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This is an experimental study of a three-player power-to-take game where a take authority is matched with two responders. The game consists of two stages. In the first stage, the take authority decides how much of the endowment of each responder that is left after the second stage will be...
Persistent link: https://www.econbiz.de/10010261421
period and individuals are not too risk averse. This paper tests the POUM hypothesis by means of a within subjects experiment … inequality aversion are (partially) controlled for via either the experiment design or the information collected during the … experiment. We find that the POUM hypothesis holds under alternative specifications, even when we control for individual fixed …
Persistent link: https://www.econbiz.de/10010261622
Myopic loss aversion (MLA) has been established as one prominent explanation for the equity premium puzzle. In this paper we address two issues related to the effects of MLA on risky investment decisions. First, we assess the relative impact of feedback frequency and investment flexibility (via...
Persistent link: https://www.econbiz.de/10010263139
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This paper experimentally explores group decision-making in a two-player power-to-take game. Discussions preceding group decisions are video taped and analyzed. Each subject first earns an income in an individual effort task preceding the game. The game consists of two stages. First, one group...
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investment behavior. In our experiment, subjects decide about investments into real-life mutual funds. We find that subjects …
Persistent link: https://www.econbiz.de/10011416914
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Time preferences drive decisions in many economic situations, such as investment contexts or salary negotiations. These situations are characterized by a very short time frame for decision making. Preferences are potentially susceptible to the confounding effects of time pressure, as proposed by...
Persistent link: https://www.econbiz.de/10011523286