Structured investment funds showed an important growth in the mutual fund industry. We analyze this type of fund’s demand using the experimental methodology which gives us perfect control over the characteristics of the funds and the information provided to the investor. Different types of...

In this experiment, structured funds are sequentially offered to investors as an alternative to bonds. Our results show that the order in which information is presented generates significant biases in decision-making. These biases can have both positive and negative consequences on investors'...

We consider the relationship between the emotional state of asset traders and market prices. We create experimental asset markets with the structure first studied by Smith, Suchanek and Williams (1988), which is known to generate price bubbles and crashes. We analyze participants' facial...

We report results from an asset market experiment, in which we investigate how the time path of the fundamental value trajectory affects the level of adherence to fundamentals. In contrast to previous experiments with long-lived assets, there is a phase in which fundamental values are constant...

Asymmetric information is a common characteristic of economic relationships and often provides incentives to deceive. Being aware of previous findings showing that ex ante transparency about conflicts of interest leads to even more deception, we hypothesize that the timing of disclosing a...

In the context of a quantity setting duopoly we experimentally test the ability of managerial compensation schemes to provide a commitment device leading to a more aggressive behavior in the product market. In line with our model, Relative Performance-based rewards are chosen more frequently...

Asymmetric information in economic relationships often provides incentives to deceive. Previous findings show that ex ante disclosure of conflicts of interest not only fails to improve these relationships but also leads to even more deception. This study proposes that providing ex post...

Hotelling's (1929) principle of minimum differentiation and the alternative prediction that firms will maximally differentiate from their rivals in order to relax price competition have not been explicitly tested so far. We report results from experimental spatial duopolies designed to address...