We present an experimental test of a shirking model where monitoring intensity is endogenous and effort a continuous variable. Wage level, monitoring intensity and consequently the desired enforceable effort level are jointly determined by the maximization problem of the firm. As a result,...

We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...

The workforce in all industrialized countries is aging. To forecast future challenges,it is important to understand the impact of a worker's age on the labor market. In this paper, we analyze whether older workers in Germany and Norway are treated differently in the hiring process. ...

The employment relationship is characterized by incomplete contracts. Labor contracts often take the form of a fixed wage without explicit performance incentives meaning that workers have a large degree of discretion over effort levels. As a consequence, an employee’s general jobattitude...

In this paper we study information revelation on asset markets with endogenousand exogenous information. Our results indicate that superior informationcan only be exploited in the beginning of trading. Information disseminateson the market and informational advantages are counter-balancedover...

We investigate the intertemporal and interpersonal allocation behavior ofspouses with different deterministic life expectations in an experiment. In eachperiod of their life both partners propose a consumption level one of which isthen randomly implemented. In spite of the complex dynamics...

We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute their own for alternative investment choices.Overall, 149 subjects participated in two experiments, one with just one risky asset, the other with two risky assets. Overconfidence...