Tighter capital requirements and mandatory deferral of compensation are among the most prominently advocated regulatory measures to reduce excessive risk-taking in the banking industry. We analyze the interplay of the two instruments in an economy with two heterogenous banks that can fund...

We use a laboratory experiment to test the impacts of uncertainty, the magnitude of fines and aversion against making type-I and type-II errors on legal decision making. Measuring uncertainty as the noise of a signal on the defendant's guilt observed by legal decision makers, we observe that a...

Apart from an extensive survey of the literature on the economics of corporate bankruptcy law, this thesis contains three own contributions: First, a model is presented where a firm's manager acquires some private information about whether a firm should be liquidated or stay in business....

Apart from an extensive survey of the literature on the economics of corporate bankruptcy law, this thesis contains three own contributions: First, a model is presented where a firm's manager acquires some private information about whether a firm should be liquidated or stay in business....

This paper analyzes asymmetrically informed litigants' incentives to settle when they anticipate the possibility of appeals. It identifies a strategic effect, which induces a litigant to negotiate pretrial so as to optimize her posttrial bargaining position, and an information effect, which...

Die Möglichkeit einer straferleichternden Selbstanzeige vor der Entdeckung durch Strafverfolgungsbehörden oder eines Straferlasses für geständige Angeklagte in Gerichtsverhandlungen ist weitverbreitet in den meisten Rechtssystemen. Die Diskussion in den Rechtswissenschaften konzentriert sich...

We study competition among market designers who create new trading platforms, when boundedly rational traders learn to select among them. We ask whether ‘Walrasian’ platforms, leading to market-clearing trading outcomes, will dominate the market in the long run. If several market designers...

Recent developments in virtual reality (VR) technology have the potential to revolutionize the way economists do experimental research. With Oculus’ light and affordable head mounted display (HMD) human subjects can literally move and use objects in virtual spaces and interact with others....

Experimental economics uses controlled and incentivized lab and field experiments to learn about economic behavior. By means of three examples, we illustrate how experiments conducted in immersive virtual environments can benefit (experimental) economic research.

Experimental economics uses controlled and incentivized lab and field experiments to learn about economic behavior. By means of three examples, we illustrate how experiments conducted in immersive virtual environments emerge as a new methodological tool that can benefit behavioral economic research.