Economists traditionally model choice as the maximization of a stable utility function. A simple way of modeling envy (though not the only one) is by adding a term which is a negative function of the consumption of the other agent(s) in one's own utility function. This paper briefly reviews some...

We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants) and large markets (about 100 participants). In...

We investigate expectation formation in a controlled experimental en-vironment. Subjects are asked to predict the price in a standard asset pricingmodel. They do not have knowledge of the underlying market equilibrium equa-tions, but they know all past realized prices and their own predictions....