Although now widespread in financial markets, circuit breakers remain controversial among researchers and professional investors. We formalize the popular argument that circuit breakers provide a “cooling-off” period for investors during market runs and we test it in the laboratory. Our...

Understanding the tradeoff between preferences for redistribution and efficiency is a central question in public finance. Existing experimental work examining this question formalize efficiency in “leaky bucket” choice tasks where possible redistribution schemes are exogeneously pre-selected...

A longstanding criticism of the core is that it is too sensitive to small changes in player numbers, as in a well known example where one extra seller (resp. buyer) causes the entire surplus to go to the buyer's (seller's) side. We test this example in the lab, using several different trading...

There is a large literature evaluating the dual process model of cognition, including the biases and heuristic it implies. To advance this literature, we focus on what triggers decision makers to switch from the intuitive process (aka System 1) to the more deliberative process (aka System 2)....

Using a laboratory experiment, we investigate whether a variety of behaviors in repeated games are related to an array of individual characteristics that are popular in economics: risk attitude, time preference, trust, trustworthiness, altruism, strategic skills in one-shot matrix games,...

We introduce a novel approach to studying behavior in repeated games - one that is based on the psychology of play. Our approach is based on the following six "aspects" of a player's behavior: round-1 cooperation, lenience, forgiveness, loyalty, leadership, and following. Using a laboratory...