In this paper we investigate how volatility shocks influence investors' perceptions about a stock's risk, its future … development, and investors' investment propensity. We ran artefactual field experiments with two participant pools (finance … professionals and students) that had to take investment decisions, differing in (i) the direction of the shock (down, up, straight …

by a large literature. Here we test whether the occurrence of bubbles depends on the experimental subjects' cognitive … sophistication. In a two-part experiment, we first run a battery of tests to assess the subjects' cognitive sophistication and …

We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 … employers. Employers can observe investment behavior, but not investors' ability types. Thereby, reputational incentives may …

, defined as the composition of the investor's attitudes for risk and her attitudes for ambiguity. Bulls and bears are defined …

experimental approach, we analyze the impact of risk, imprecision in probabilities (ambiguity), imprecision in outcomes, and a …

We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 … employers. Employers can observe investment behavior, but not investors' ability types. Thereby, reputational incentives may …