We use experiments to assess the impact of different savings mechanisms in pension system design. The savings mechanisms are chosen with an eye to common features of European pension systems. We introduce a novel utility function in our experiments incorporating habit formation and loss...

Despite widespread criticism, credit ratings continue to be commissioned and paid for by the firms they ought to scrutinize, raising concerns about the reliability of these issuer-paid ratings. We evaluate whether financial reputation concerns can effectively alleviate rating inflation and find...

In this paper, we provide unique experimental evidence of depositors’ behaviour in presence of a possibility to convert commercial bank deposits into central bank digital currency (CBDC). Theoretically and experimentally we analyse whether such an option incentivises bank runs. We find that...

Purpose The purpose of this paper is to create a universal (asset-class-independent) portfolio risk index for a global private investor. Design/methodology/approach The authors first discuss existing risk measures and desirable properties of a risk index. Then, they construct a universal...