In an experiment with 739 subjects, we study whether and how different interventions might have influence on the degree of moral behavior when subjects make decisions that can generate negative externalities uninvolved parties. Particularly, either take money for themselves or donate it to UNICEF measles vaccines. By considering two fairly institutional regimes—one individual decision making, one a double-auction market—we expose kind robustness check. We find threat monetary punishment...

We experimentally compare fast and slow decisions in a series of experiments on financial risk taking three countries involving over 1700 subjects. To manipulate decisions, subjects were randomly allocated to responding within 7 seconds (time pressure) or waiting for at least 20 delay) before responding. control different effects time pressure delay measurement noise, we estimate separate parameters noise preferences random utility framework. find that increases aversion gains losses...

There is a heated debate on whether markets erode social responsibility and moral behavior. However, it challenging task to identify measure behavior in markets. Based theoretical model, we examine an experiment the relation between trading volume, prices by setting up that either impose negative externality third parties or not. We find reveals itself lower volume with externality, while mostly depend market structure. further investigate individual characteristics explain externalities.

With the rise of experimental research in social sciences, numerous methods to elicit and classify people's risk attitudes laboratory have evolved. However, evidence suggests that towards may vary considerably when measured with different methods. Based on a within-subject design using four widespread preference elicitation tasks, we find indeed give varying estimates individual aggregate level preferences. Conducting simulation exercises obtain benchmarks for subjects' behavior, observed...

Financial literacy and economic preferences are considered to be important drivers of health, income, general well-being. We bridge the gap between studies on financial research by investigating how they interplay with each other field behavior adolescents. First, we report that scores positively associated patience, male gender, educational level father. Second, observe risky like smoking gambling is various measures risk-tolerance, negatively patience. Finally, discuss implications for...

Abstract Based on artefactual field experiments, we investigate whether finance professionals differ from a sample of the working population in terms industry-relevant preferences and personality traits. When adjusting for socioeconomic characteristics, find only few less marked differences: are risk averse, trustworthy, show higher levels psychopathy more competitive than participants general population. In an additional survey, experts with hiring experience consider industry selection,...

Based on an online experiment with a sample of finance professionals and participants from the general population (acting as clients), we examine drivers motives clients’ choices to delegate investment decisions agents. We find that clients favor delegation algorithms, followed by compensated aligned incentive scheme, lastly receiving fixed payment for investing behalf others. show trust in algorithms or professionals, propensity shift blame others increase likelihood delegation, whereas own...

The integration of ethnical minorities has been a hotly discussed topic in the political, societal, and economic debate. Persistent discrimination can hinder successful integration. Given that unequal access to investment financing opportunities cause social disparities due inferior prospects, we conducted field experiment on finance sector with 1,218 banks seven European countries. We contacted via e-mail, either domestic or Arabic sounding names, asking for contact details only. find...

We analyze the lead time syndrome (LTS), which describes a positive feedback loop between updating and increasing order quantities. While previous studies have focused on theoretical analysis anecdotal evidence, we examine impact of human decision making with help controlled laboratory using novel experimental design simple two tier supply chain. show that theoretically postulated phenomenon LTS can be reproduced in lab including makers. find dynamic (load dependent) chain serves as...

Rankings are intended as incentive tools on labor markets. Yet, when agents perform multiple tasks, rankings might have unintended side-effects, especially if not all tasks can be ranked with respect to performance. We analyze the dynamics of multi-tasking and present an experiment 286 finance professionals in which we identify hidden ranking costs performance one task is while another prosocial it not. find that subjects lagging behind (leading) devote less (more) effort task. discuss...

Since the financial crisis, behavior and personality traits of finance professionals have come under scrutiny. As comprehensive scientific findings are lacking, we run artefactual field experiments with a random sample working population to investigate differences across industry-relevant economic preferences traits. We report that more risk tolerant, selfish, less trustworthy, show higher levels narcissism, psychopathy, Machiavellianism. However, find many these disappear after adjusting...

Based on an online experiment with a sample of finance professionals and participants from the general population (acting as clients), we examine drivers motives clients' choices to delegate investment decisions agents. We find that clients favor delegation algorithms, followed by compensated aligned incentive scheme, lastly receiving fixed payment for investing behalf others. show trust in algorithms or professionals, propensity shift blame others increase likelihood delegation, whereas own...

With the rise of experimental methods in social sciences, numerous to elicit and classify people's risk attitudes laboratory have evolved. However, evidence suggests that towards may change considerably when measured with different methods. Based on a with-subject design using four widespread elicitation methods, we find procedures indeed give varying estimates individual aggregate level preferences. Conducting simulation exercises obtain benchmarks for subjects' behavior, observed...

We run an online experiment with 408 finance professionals (money managers) and 550 subjects from the general population in Sweden (clients). examine drivers of clients' delegation decisions, differences decision-making quality between both groups, professionals' ability to implement investment portfolios that suit risk attitudes. find trust money managers increases likelihood delegating their whereas is associated a decrease. further show not significantly higher compared when controlling...

We run an investment experiment with 408 finance professionals (agents) and 550 participants from the general population (clients). vary mode of decision-making (investment on one’s own account vs. behalf clients) agents' incentives (aligned fixed). find that show higher quality than when investing for themselves. However, deciding clients, professionals' does not differ their irrespective incentives. Our results further identify challenges in risk communication, as professionals’ portfolios...

With the rise of experimental research in social sciences, numerous methods to elicit and classify people's risk attitudes laboratory have evolved. However, evidence suggests that towards may change considerably when measured with different methods. Based on a within-subject design using four widespread preference elicitation methods, we find procedures indeed give varying estimates individual aggregate level preferences. Conducting simulation exercises obtain benchmarks for subjects'...

In an experiment with 739 subjects we study whether and how different interventions might have influence on the degree of moral behavior when make decisions that can generate negative externalities uninvolved parties. Particularly, either take money for themselves or donate it to UNICEF measles vaccines. By considering two fairly institutional regimes – one individual decision making, a double-auction market expose kind robustness check. We find threat monetary punishment promotes in both...

Markets are ubiquitous in our daily life and, despite many imperfections, they a great source of human welfare. Nevertheless, there is heated recent debate on whether markets erode social responsibility and moral behavior. In fact, competitive pressure may create strong incentives for unethical practices (like using child labor) to increase competitiveness. While have been considered as detrimental behavior, it has turned out challenging task identify where behavior reflected market. Recent...

Download This Paper Open PDF in Browser Add to My Library Share: Permalink Using these links will ensure access this page indefinitely Copy URL DOI