In laboratory experiments we explore the effects of communication and group decision making on investment behavior and on subjects’ proneness to behavioral biases. Most importantly, we show that communication and group decision making does not impact subjects’ overall proneness to biases...

We study price efficiency and trading behavior in laboratory limit order markets with asymmetrically informed traders. Markets differ in the number of insiders present and in the subset of traders who receive information about the number of insiders present. We observe that price efficiency (i)...

Backers and opponents argue over the pros and cons of legislation forbidding insider trading. At the same time, the lack of reliable empirical data caused by the currently prevailing legal systems inhibits an exhaustive scientific evaluation. We circumvent this problem by resorting to laboratory...