Showing 1 - 10 of 146
In this paper we investigate individual overconfidence within the context of an experimental asset market. Overall, 72 participants traded one risky asset on six markets of 12 participants each. Our results indicate that participants are not generally prone to overconfidence. A comparison of two...
Persistent link: https://www.econbiz.de/10012754671
This paper investigates (i) the robustness of hindsight bias in experimental asset markets, (ii) the time invariance of the different experimental risk elicitation methods of certainty equivalents and binary lottery choices, and (iii) their correspondence. The results of our within-subjects...
Persistent link: https://www.econbiz.de/10012712168
Some rational decision theorists argue that moral considerations would introduce inefficiency to investment decisions. However, market demand for socially responsible investment is increasing. We test the suitability of (a) multiple attribute utility theory, (b) theory of planned behavior, and...
Persistent link: https://www.econbiz.de/10012711920
In phase 1 of our experiment every participant plays the ultimatum game with each of the other five group members, each taking the role of proposer and responder. For each of the offers one learns how many participants would have accepted it. The pie is 30 times larger in phase 2. It thus pays...
Persistent link: https://www.econbiz.de/10005515330
In this paper we investigate individual overconfidence within the context of an experimental asset market. Overall, 72 participants traded one risky asset on six markets of 12 participants each. Our results indicate that participants are not generally prone to overconfidence. A comparison of two...
Persistent link: https://www.econbiz.de/10005542775
Persistent link: https://www.econbiz.de/10005388553
Businesses that rely heavily on cash transactions have been found to be particularly susceptible to low tax ethics. Recent research indicates that cash is a highly powerful and tempting reward, which elicits a strong emotional response. In this article, we investigate how emotions affect tax...
Persistent link: https://www.econbiz.de/10010868396
In this paper we investigate four hypotheses which are inconsistent with expected utility theory, but may well be explained by prospect theory. It deals with framing, the non-linearity of subjective probabilities, the disposition effect, and the correspondence of different experimental risk...
Persistent link: https://www.econbiz.de/10010956363
We investigate (i) whether traders on an experimental asset market form different and separate mental accounts for sale revenues and for dividend earnings and whether (ii) an increase in tax penalty or (iii) an increase in audit frequency increases tax compliance. The results indicate that...
Persistent link: https://www.econbiz.de/10010956538
From an economic point of view, legal considerations apart, tax avoidance, tax evasion and tax flight have similar effects, namely a reduction of revenue yields, and are based on the same desire to reduce the tax burden. Due to legal differences and moral concerns it is, however, likely that...
Persistent link: https://www.econbiz.de/10010956595