We use experiments to assess the impact of different savings mechanisms in pension system design. The savings mechanisms are chosen with an eye to common features of European pension systems. We introduce a novel utility function in our experiments incorporating habit formation and loss...

In this paper, we provide unique experimental evidence of depositors’ behaviour in presence of a possibility to convert commercial bank deposits into central bank digital currency (CBDC). Theoretically and experimentally we analyse whether such an option incentivises bank runs. We find that...

Modigliani and Miller showed that the market value of the company is independent of its capital structure, and suggested that dividend policy makes no difference to this law of one price. We experimentally test the MM theorem in a complete market with two simultaneously traded assets, employing...