We investigate the impact of trader and cash inflow on bubble formation in asset markets with a novel design featuring heterogeneous information and a constant fundamental value. Implementing seven treatments we find that (i) only the joint inflow of traders and cash triggers bubbles...

There is a heated debate on whether markets erode social responsibility and moral behavior. However, it is a challenging task to identify and measure moral behavior in markets. Based on a theoretical model, we examine in an experiment the relation between trading volume, prices and moral...

To study whether clients benefit from delegating financial investment decisions to an agent, we run an investment allocation experiment with 408 finance professionals (agents) and 550 participants from the general population (clients). In several between subjects treatments, we vary the mode of...

We run an online experiment with finance professionals and subjects from the general population (clients) to examine drivers and implications of clients' delegation decisions. We find that clients favor delegation to investment algorithms, followed by delegation to finance professionals with...

Financial literacy and economic preferences are considered to be important drivers of health, income, and general well-being. We bridge the gap between studies on financial literacy and research on economic preferences by investigating how they interplay with each other and with the field...

Rankings are intended as incentive tools on labor markets. Yet, when agents perform multiple tasks - not all of which can be ranked with respect to performance -, rankings might have unintended side-effects. Based on a dynamic model of multi-tasking, we present an experiment with financial...

Since the financial crisis, the behavior and personality traits of finance professionals have come under scrutiny. As comprehensive scientific findings are lacking, we run artefactual field experiments with finance professionals and a random sample of the working population to investigate...

With the rise of experimental research in the social sciences, numerous methods to elicit and classify people's risk attitudes in the laboratory have evolved. However, evidence suggests that people's attitudes towards risk may change considerably when measured with different methods. Based on a...

The question of optimal presentation format and choice architecture for investment decisions has gained momentum among researchers, policy makers, and practitioners alike. Motivated by the question how to provide information to investors in a way to improve financial decision-making, we conduct...

The term greed has become very popular in the public debate. It is regularly argued, for instance, that greed is one of the deep rooted reasons for the financial crisis, numerous incidents of fraud and growing inequalities in wealth. Despite its prominent role in the current debates, however,...