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Investment, Resolution of Risk, and the Role of Affect

van Winden, Frans; Krawczyk, Michal; Hopfensitz, Astrid - 2008

This experimental study is concerned with the impact of the timing of the resolution of risk onpeople's willingness to … inferred from decisions regarding hypothetical choiceproblems, we had participants put their own money at risk in a real … under delayed resolution (which involved two days). Affective traits and risk attitudes weremeasured through a web …

Persistent link: https://www.econbiz.de/10010325960

Bubble Formation and (In)Efficient Markets in Learning-to-Forecast and -optimise Experiments

Bao, Te; Hommes, Cars; Makarewicz, Tomasz - 2015

This experiment compares the price dynamics and bubble formation in an asset market with a price adjustment rule in three treatments where subjects (1) submit a price forecast only, (2) choose quantity to buy/sell and (3) perform both tasks. We find deviation of the market price from the...

Persistent link: https://www.econbiz.de/10011403565

Bubbles, crashes and information contagion in large-group asset market experiments

Hommes, Cars H.; Kopányi-Peuker, Anita; Sonnemans, Joep - 2019

We study the emergence of bubbles in a laboratory experiment with large groups of individuals. The realized price is the aggregation of the forecasts of a group of individuals, with positive expectations feedback through speculative demand. When prices deviate from fundamental value, a random...

Persistent link: https://www.econbiz.de/10012114769

Do financial advisors exploit responsible investment preferences?

Laudi, Marten; Smeets, Paul; Weitzel, Utz - 2021

An unprecedented number of investors are giving their financial advisors a mandate for socially responsible investing (SRI). Yet, the impact of SRI mandates on consumers is unclear. In a pre-registered lab-in-the-field experiment with 345 professional advisors, we find that advisors charge a...

Persistent link: https://www.econbiz.de/10012797228

Dynamic Choice, Independence and Emotions

Hopfensitz, Astrid; van Winden, Frans - 2006

problem involves the presence of a “global risk,” that is, a chance of losing everything whichever safe or risky option is … variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk …

Persistent link: https://www.econbiz.de/10010325272

Performance Measurement, Expectancy and Agency Theory: An Experimental Study

Sloof, Randolph; van Praag, Mirjam - 2007

Theoretical analyses of (optimal) performance measures are typically performed within the realm of the linear agency model. This model implies that, for a given compensation scheme, the agent’s optimal effort is unrelated to the amount of noise in the performance measure. In contrast,...

Persistent link: https://www.econbiz.de/10010325571

Errors in Judicial Decisions

Sonnemans, Joep; van Dijk, Frans - 2008

In criminal cases the task of the judge is to transform the uncertainty about the facts into the certainty of the verdict. In this experiment we examine the relationship between evidence of which the strength is known, subjective probability of guilt and verdict for abstract cases. We look at...

Persistent link: https://www.econbiz.de/10010325809

Separating Real Incentives and Accountability

Vieider, Ferdinand M. - 2008

reversals between frames, for which incentives have no effect. Incentives on the other hand are found to reduce risk seeking for …

Persistent link: https://www.econbiz.de/10010326033

A Dynamic Model of Investor Decision-Making: How Adaptation to Losses affects Future Selling Decisions

Lee, Carmen; Kraeussl, Roman; Lucas, André; Paas, … - 2008

We conduct an experiment to test whether the size of a loss and the time in a losing position affect investors’ adaptation to the loss situation and, subsequently, whether this adaptation affects future investment decisions. As investors adapt to losses, their neutral reference point shifts...

Persistent link: https://www.econbiz.de/10010326067

Information at a Cost: A Lab Experiment

Robalo, Pedro; Sayag, Rei S. - 2012

economic literature. In this paper we explore whether individual decision making under risk is affected by the cost of the …

Persistent link: https://www.econbiz.de/10010326404