The Paper reports a basic Experiment on the option pricing approach. Each trader with an increasing utility for money values the option with his arbitrage free price, which is independent of the probability of the stock movement. The experimental data show that the traiders learn to exploit more...

This paper reports an option pricing experiment on the binomial model, which has been conducted with professional traders of financial assets. The experimental results are compared to a corresponding experiment with students. The data show that professional traders achieve lower arbitrage...

The paper presents a favorable trading environment for the binomial option pricing model, which allows to study optimal trading strategies, and incorporates the core feature that all traders with an increasing utility for money value the option with its arbitrage free price. We study three...

Many important economic and political decisions are made by teams. In the economic literature, however, the decision units are frequently modeled as individual economic agents. The paper experimentally investigates the question to what extent observed team decisions under risk are actually...

Two players bargain over the allocation of a sum of money. They are only incompletely informed about the opponent's alternative in case of conflict. The paper investigates two different experimental approaches: the spontaneous behavior of subjects in a game playing experiment and the strategies...

The German federal government intends to introduce regular staff rotation as a precautionary measure against corruption in public administrations. To test the effectiveness of this instrument, we conduct an experiment using the bribery game by Abbink, Irlenbusch, and Renner (1999), in which...

This paper reports on RatImage, a toolbox specifically developed to simplify the programming of software used in computerized human behavior experiments. RatImage contains Borland Turbo Pascal constans, variables, functions, and procedures which, when used, relieve programmers of many tedious...

We report an experiment on a decision task by SAMUELSON and BAZERMAN (1985). Subjects submit a bid for an item with an unknown value. A winner’s curse phenomenon arises when subjects bid too high and make losses. Learning direction theory can account for this. However, other influences on...