The number of online experiments conducted with subjects recruited via platforms has grown considerably in the recent past. While one commercial crowdworking platform – Amazon's Mechanical Turk basically established and since dominated this field, new alternatives offer services explicitly targeted at researchers. In article, we present www.prolific.ac lay out its suitability for recruiting social economic science experiments. After briefly discussing key advantages challenges relative to...

Peer review is a well-established cornerstone of the scientific process, yet it not immune to biases like status bias, which we explore in this paper. Merton described bias as prominent researchers getting disproportionately great credit for their contribution, while relatively unknown get little [R. K. Merton, Science 159, 56-63 (1968)]. We measured extent peer-review process through preregistered field experiment. invited more than 3,300 finance research paper jointly written by author (a...

Sustainable investing is characterized by considerations of both financial returns and ESG (Environmental, Social Governance) impacts. We investigate how information about these two aspects, individually in combination, affects investors' decision to invest sustainably their satisfaction with the they received. also test whether different preference elicitation modes affect investment decisions satisfaction. conduct an incentivized online experiment samples, experienced retail investors a...

We explore how individual risk perception influences prices and trading behavior in a market setting. Specifically, our study lets experimental participants trade assets characterized by varying shapes of return distributions. While common mean-variance models predict identical for most assets, we find to differ significantly. Assets that are perceived as being less risky on average (despite having volatility) at significantly higher prices. Individually, traders who perceive certain asset...

In this article we lay out requirements for an experimental market software financial and economic research. We then discuss existing solutions. Finally, introduce GIMS, open source which is characterized by extensibility ease of use, while offering nearly all the required functionality.

When the information of many individuals is pooled, resulting aggregate often a good predictor unknown quantities or facts. This frequently outperforms forecasts experts even best individual forecast included in aggregation process ("wisdom crowds"). However, an appropriate mechanism considered crucial to reaping benefits "wise crowd". Of possible ways forecasts, we compare (uncensored and censored) arithmetic geometric mean median, continuous double auction market prices sealed bid-offer...

Peer-review is a well-established cornerstone of the scientific process, yet it not immune to status bias. Merton identified problem as one in which prominent researchers get disproportionately great credit for their contribution while relatively unknown little (Merton, 1968). We measure extent this effect peer-review process through pre-registered field experiment. invite more than 3,300 review paper jointly written by author - Nobel laureate and an early-career research associate -,...

Reciprocation of monetary gifts is well-understood in economics. In contrast, there little research on reciprocal behavior following immaterial like compliments. We narrow this gap and investigate how employees reciprocate after receiving material over time. purchase (1) ice cream from fast food restaurants, (2) durum doner, a common lunch snack, independent vendors. Prior to the food's preparation, we either compliment or tip salesperson. find that salespersons compliments with higher...

Backers and opponents argue over the pros cons of legislation forbidding trading by informed insiders. Yet a lack reliable empirical data about effects such inhibits conclusive scientific evaluation. We overcome this problem resorting to laboratory markets find that insider has significant negative on multiple market dimensions: under legislation, (1) are less liquid, (2) informationally efficient, (3) uninformed traders׳ earnings (before redistribution illicit gains) lower.

Modern capital markets are subject to many interventions and regulations, some of which curtail the implementation specific trading strategies in a market. While we understand much these regulations' individual effects, picture is less clear about their joint effects. This paper considers interaction two namely rules limiting shorting assets cash, insider trading. For prior research shows spikes short-selling activity around revelation information, different studies trace causes. Among other...

We experimentally investigate whether human subjects are willing to give up individual freedom in return for the benefits of improved coordination. conduct a modified iterated public goods game which each period first decide two groups join. One group employs voluntary contribution mechanism, other an allocator mechanism. The setup mechanism differs between treatments. In coordinator treatment, randomly selected can set uniform all members, including herself. dictator choose different...

Discussions about insider trading regulation veer between the poles of forbidding to protect market integrity and allowing foster informational efficiency. We study traders' preferences for by offering them concurrent markets with different regulatory regimes in an experimental setting. find that informed preference unregulated causes both uninformed traders be more active market. This market, thus, sees volume, lower spreads, less mispricing. Nevertheless, suffer greater losses markets,...