We explore the effects of social distance on reciprocal behavior in an experiment conducted over the Internet on three continents and in classroom laboratory sessions conducted in Israel and Spain.

Assume that two risk neutral agents with asymmetric information simultaneously expect a gain from zero-sum betting. Geanakoplos and Sebenius (1983) (henceforth GS) consider the case where the agents may re-evaluate the profitability of betting successively before the payments are realized. They...

Class and field surveys revealed that personal inclination to take structured lottery-risk significantly correlates with optimism in financial forecasting. Trait optimism reflects in return predictions for successful and problematic stocks, in likelihood assessments of specific events, and even...

Previous research suggests that human reaction to risky opportunities reflects two contradicting biases: Òloss aversion", and Òlimited level of reasoning" that leads to overconfidence. Rejection of attractive gambles is explained by loss aversion, while counterproductive risk seeking is...

The experimental approach was applied to test the value of historical return series in technical prediction. Return sequences were randomly drawn cross-sectionally and over time from S&P500 records and participants were asked to predict the 13th realization from 12 preceding returns. The...