This paper investigates the effect of monetary policy on stock market bubbles and trading behavior in experimental asset markets. For this purpose, we introduce the possibility of investing in interest bearing bonds to the widely used laboratory asset market design of Smith, Suchanek, and...

Investor behavior was shown to be considerably different when the risk-return tradeoff is presented by experience sampling as opposed to a descriptive communication. We analyze the persistency of this difference in a setting in which investors are faced with multiple decisions over time and are...

We apply a new and innovative approach to communicating risks associated with financial products that should support investors in making better investment decisions. In our experiments, participants are able to gain “simulated experience” by random sampling of a previously described return...

The paper investigates the effect of interest rate policy on price bubbles, trading behavior, and portfolio choice in experimental stock markets. In a series of experiments, participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds....

There are people who are motivated by the non-selfish, non-strategic, and non-consequentialist“protected value” of truthfulness. We conduct an experiment directly assessing thisphenomenon. We find that people differ substantially in their truthfulness, with a largeminority powerfully...

This paper is the rst to empirically analyze the value to shareholders of the power to havea binding vote on management pay. We nd that in response to an unanticipated eventthat made it likely that an annual binding vote would become compulsory for Swiss publiccompanies, the apparent immediate...

This paper develops a structural equilibrium model with intertemporal macroeconomic risk, in-corporating the fact that ¯rms are heterogeneous in their asset composition. Compared to ¯rmswhich are mainly composed of invested assets, ¯rms with growth options have larger costs ofdebt because...