| 11. |
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| 12. |
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| 13. |
- Kleinlercher, D., et al.
(författare)
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The impact of different incentive schemes on asset prices
- 2014
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921. ; 68, s. 137-150
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Tidskriftsartikel (refereegranskat)abstract
- How people are incentivized is one of the main drivers of how they behave. In laboratory asset markets we evaluate the impact of four trader incentive bonus, bonus with cap, linear, and penalty - on asset prices and trader behavior. We find that (i) an asset with identical expected dividend shows price levels which differ by more than 100 percent depending on the incentive scheme subjects face. In particular, prices of markets populated by subjects with bonus incentives show the highest prices, whereas those with penalty-like incentivized subjects exhibit the lowest. (ii) However, subjects act approximately rational as different incentives generate different optimal price levels. (iii) In markets where different subjects have different incentive schemes we find that those with bonus incentives exhibit a riskier investment behavior and prefer the riskier asset, whereas subjects with penalty incentives invest conservatively and mainly hold cash. Since we find no difference in risk attitude of subjects prior to the experiment, differences in investment behavior are induced by the applied incentives. Our results highlight that incentives on financial markets have a huge impact on asset prices and investment behavior. (C) 2014 Elsevier B.V. All rights reserved.
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| 14. |
- Stoeckl, Thomas, et al.
(författare)
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Bubble measures in experimental asset markets
- 2010
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Ingår i: EXPERIMENTAL ECONOMICS. - 1386-4157. ; 13:3, s. 284-298
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Tidskriftsartikel (refereegranskat)abstract
- We review bubble measures which are commonly used in the experimental asset market literature. It seems sensible to require that measures of mispricing should (i) relate the fundamental value and price, (ii) be monotone in the difference between fundamental value and price, and (iii) be independent of the total number of periods and the absolute level of fundamental value. We show that none of the measures currently used fulfills all these criteria. To facilitate comparability across different experimental settings with different parameterizations we propose two alternative measures which fulfill all evaluation criteria. The measure for mispricing, RAD (relative absolute deviation), is calculated by averaging absolute differences between the (volume-weighted) mean price and the fundamental value across all periods and normalizing it with the absolute value of the average FV of the market. The measure for overvaluation, RD (relative deviation), is calculated analogously, but uses raw difference between (volume-weighted) mean prices and fundamental values. Hence, it provides information on whether the mispricing stems from over- or undervaluation of the asset.
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| 15. |
- Stöckl, T., et al.
(författare)
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Trading behavior and profits in experimental asset markets with asymmetric information
- 2014
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Ingår i: Journal of Behavioral and Experimental Finance. - : Elsevier. - 2214-6350. ; 2, s. 18-30
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Tidskriftsartikel (refereegranskat)abstract
- We study trading behavior and its profitability in experimental asset markets with asymmetrically informed traders. We find that insiders make most of their profits from trades which are initiated by their limit orders. The average informed lose most with market orders and their losses are highest when they pick up insiders' limit orders. Uninformed traders act as liquidity providers. They place the highest number of limit orders and end up with the market return. © 2014 Elsevier B.V.
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| 16. |
- Sutter, Matthias, 1968, et al.
(författare)
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Bubbles and information. An experiment
- 2012
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Ingår i: Management Science. - : Institute for Operations Research and the Management Sciences (INFORMS). - 0025-1909 .- 1526-5501. ; 58:2, s. 384-393
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Tidskriftsartikel (refereegranskat)abstract
- A symmetric distribution of information, although omnipresent in real markets, is rarely considered in experimental economics. We study whether information about imminent future dividends can abate bubbles in experimental asset markets. We find that markets with asymmetrically informed traders have significantly smaller bubbles than markets with symmetrically informed or uninformed traders. Hence, fundamental values are better reflected in market prices—implying higher market efficiency—when some traders know more than others about future dividends. This suggests that bubbles are abated when traders know that a subset of them have an edge (in information) over others.
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| 17. |
- Tinghög, Gustav, 1979-, et al.
(författare)
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Intuition and cooperation reconsidered
- 2013
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Ingår i: Nature. - : Nature Publishing Group. - 0028-0836 .- 1476-4687. ; 498:7452, s. E1-E2
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Tidskriftsartikel (refereegranskat)abstract
- Rand et al.1 reported increased cooperation in social dilemmas after forcing individuals to decide quickly1. Time pressure was used to induce intuitive decisions, and they concluded that intuition promotes cooperation. We test the robustness of this finding in a series of five experiments involving about 2,500 subjects in three countries. None of the experiments confirms the Rand et al.1 finding, indicating that their result was an artefact of excluding the about 50% of subjects who failed to respond on time.
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