Show simple item record

dc.contributor.authorHolmén, Martin
dc.contributor.authorKirchler, Michael
dc.contributor.authorKleinlercher, Daniel
dc.date.accessioned2012-09-18T11:32:15Z
dc.date.available2012-09-18T11:32:15Z
dc.date.issued2012-11 (revised)
dc.identifier.issn1403-2465
dc.identifier.urihttp://hdl.handle.net/2077/30294
dc.description.abstractOne potential reason for bubbles evolving prior to the financial crisis was excessive risk taking stemming from option-like incentive schemes in financial institutions. By running laboratory asset markets, we investigate the impact of option-like incentives on price formation and trading behavior. We observe (i) that option-like incentives induce significantly higher market prices than linear incentives. We further find that (ii) option-like incentives provoke subjects to behave differently and to take more risk than subjects with linear incentives. We finally show that (iii) trading at inflated prices is rational for subjects with option-like incentives since it increases their expected payout.sv
dc.format.extent38 pagessv
dc.language.isoengsv
dc.relation.ispartofseriesWorking Papers in Economicssv
dc.relation.ispartofseries540 (revised)sv
dc.subjectmispricingsv
dc.subjectincentivessv
dc.subjectmarket efficiencysv
dc.subjectexperimental financesv
dc.titleDo Option-like Incentives Induce Overvaluation? Evidence from Experimental Asset Marketssv
dc.typeTextsv
dc.type.svepreportsv
dc.contributor.organizationDept of Economics, University of Gothenburgsv


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record