scholarly journals Forecasting Skills in Experimental Markets: Illusion or Reality?

2020 ◽  
Author(s):  
Brice Corgnet ◽  
Cary Deck ◽  
Mark DeSantis ◽  
David Porter
Keyword(s):  
Experimental Markets

Does Investors' Desire to Punish Misreporting Affect Their Litigation Decisions and Managers' and Investors' Welfare?

2016 ◽  
Vol 29 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Jason L. Brown ◽  
Donald V. Moser
Keyword(s):  
Financial Incentives ◽  
Financial Incentive ◽  
Securities Markets ◽  
Corporate Managers ◽  
Experimental Markets ◽  
Welfare Benefits ◽  
Reporting Decisions ◽  
Legal Fees ◽  
Financial Penalty ◽  
Do So

ABSTRACT Shareholder litigation is an important part of the regulation of securities markets that can influence corporate managers' reporting behavior. Prior research shows that conventional economic factors affect investors' litigation decisions. We use experimental markets to examine whether investors engage in costly litigation even without a direct financial incentive to do so and whether this affects managers' reporting decisions and managers' and investors' welfare. We find that investors frequently litigate when they can impose a financial penalty on managers for misreporting even though they cannot recover their legal fees or receive restitution for their losses. Moreover, this deters managers' shirking and misreporting and improves managers' and investors' welfare almost as effectively as when investors can recover their legal fees and receive restitution for their losses. Overall, our results indicate that, in addition to financial incentives, investors' desire to punish misreporting plays an important role in their litigation decisions, and that may yield substantial welfare benefits.

scholarly journals Vertical Foreclosure in Experimental Markets

2000 ◽  
Author(s):  
Stephen NMI Martin ◽  
Hans Theo Normann ◽  
Christopher M. Snyder
Keyword(s):  
Experimental Markets ◽  
Vertical Foreclosure

scholarly journals Experimental Markets and Environmental Policy

1993 ◽  
Vol 22 (2) ◽  
pp. 117-129 ◽  
Author(s):  
Jason F. Shogren
Keyword(s):  
Environmental Policy ◽  
Transaction Costs ◽  
Experimental Auction ◽  
Dynamic Choice ◽  
Auction Markets ◽  
Experimental Markets ◽  
Reduction Mechanisms ◽  
Sequential Reduction ◽  
The Impact ◽  
Coasian Bargaining

Experimental markets can be a useful tool to guide and evaluate environmental policy. This paper reviews four experiments to illustrate. Two institutional experiments are considered—Coasian bargaining with positive transaction costs, and a gaming experiment of dynamic choice in a conflict. Two valuation experiments are also discussed—the impact of sequential reduction mechanisms on the value of risk, and experimental auction markets to elicit the value of safer food.

scholarly journals Predictions using experimental markets

2003 ◽  
Vol 51 (6) ◽  
pp. 838-850 ◽  
Author(s):  
Michal Hlaváček ◽  
Adam Geršl ◽  
Tomáš Cahlík ◽  
Michael Berlemann
Keyword(s):  
Experimental Markets

scholarly journals Stackelberg Beats Cournot: On Collusion and Efficiency in Experimental Markets*

2001 ◽  
Vol 111 (474) ◽  
pp. 749-765 ◽  
Author(s):  
Steffen Huck ◽  
Wieland Müller ◽  
Hans-Theo Normann
Keyword(s):  
Experimental Markets

The Impact of High-Frequency Trading in Experimental Markets

2020 ◽  
Vol 29 (4) ◽  
pp. 7-18
Author(s):  
Nathanael Berger ◽  
Mark DeSantis ◽  
David Porter
Keyword(s):  
High Frequency ◽  
High Frequency Trading ◽  
Experimental Markets ◽  
The Impact
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