In this paper we investigate to what extent the decrease in the willingness to take risks with age can be traced to the cognitive ageing process. We use data from the Survey of Health, Ageing and Retirement in Europe (SHARE) that includes both a measure of financial risk preference and measures...

This paper examines the life-cycle impact of preference factors as experience, loss aversion, and narrow framing on explaining the empirical low stock market participation, low stock share conditional on participation, and positive relationships between financial wealth and participation as well...

By using laboratory experimental data, we test the uncertainty of strategy type in various competing environments with two person constant sum 2x2 game in the social system. It firstly shows that, in these competing game environments, the outcome of human's decision-making obeys the principle of...

We provide new evidence on the link between beauty and hiring practices in the labor market. Specifically, we study if people with less attractive faces are less likely to be contacted after submitting a resume. Our empirical strategy is based on an experimental approach. We sent fictitious...

This is the first paper to test the asset pricing implication of leverage in a laboratory. We show that as theory predicts, leverage increases asset prices: When an asset can be used as collateral (that is, when the asset can be bought on margin), its price goes up. This increase is significant,...

In randomized field experiments, we embedded one- to two-sentence anchoring, goal-setting, or savings threshold cues in emails to employees about their 401(k) savings plan. We find that anchors increase or decrease 401(k) contribution rates by up to 1.9% of income. A high savings goal example...