We present experimental evidence on the effect of adverse selection on coverage choices and pricing in corporate insurance markets. Two sets of experimental data are presented to gauge these effects. In the first set, subject behavior appears to conform to the unique equilibrium in which high...

We provide experimental evidence that non-binding pre-play communication between bidders in auctions of shares facilitates the adoption of equilibrium strategies: collusive strategies in uniform-price auctions, and the unique equilibrium in undominated strategies in discriminatory auctions. When...

It is generally agreed that stockholder/bondholder agency conflicts are an important factor in the determination of corporate debt maturity policies. It has also frequently been argued that agency considerations favor shorter debt maturities. In this paper, we show that if the locus of the...