Handbook of Experimental Finance

Ernan and I edited the Handbook of Experimental Finance. You can find the official page here. We thank all contributors and referees for a great job!

Contents

Introduction to the Handbook of Experimental Finance 1
Sascha Füllbrunn, Ernan Haruvy

PART ONE BASIC RESEARCH

1 Current and possible future research directions in experimental finance 12
Charles Noussair

2 Experiments in finance: From no to maybe to yes! 17
Pascal Kieren, Martin Weber

3 The complementarity of experimental and archival finance research 26
Lucy F. Ackert, Hong Qu

4 Physiological measures in experimental finance 41
Eyal Ert, Abigail Hurwitz, Sven Nolte

5 Ambiguity, experience and unforeseen events in experimental finance 54
Stefan T. Trautmann

6 Experimental finance and financial professionals 64
Sascha Füllbrunn, Christoph Huber, Christian König-Kersting

7 Cognitive finance 73
Ciril Bosch-Rosa, Brice Corgnet

8 The perils of a blanket model: Financial anomalies and loss aversion 89
Eldad Yechiam

9 Testosterone and financial risk taking 98
John Dinsmore, Eric Stenstrom, Marcelo Vinhal Nepomuceno

10 On attention to information: The checking paradox 105
Yefim Roth, Ofir Yakobi

11 The double-channeled effects of experienced payoffs in investment decisions 117
Peiran Jiao

12 Investing other people’s money 132
Sascha Füllbrunn, Ola Kvaløy, Wolfgang Luhan

13 From the field to the lab: Professionals and bidding aggression 145
Timo Heinrich, Matthew James Walker

14 Coordination games: Escaping the straitjacket 152
Christos A. Ioannou

PART TWO APPLIED RESEARCH

15 Perishable goods versus re-tradable assets: A theoretical reappraisal of a fundamental dichotomy 162
Sabiou M. Inoua, Vernon L. Smith

16 Pairing multi-market theory with experiments 172
Elena Asparouhova, Peter Bossaerts, Sean Crockett

17 The effect of favorable and unfavorable information on asset prices 194
Charles Noussair, Steven Tucker, Mark Ryan

18 Market experiments with multiple assets: A survey 213
John Duffy, Jean Paul Rabanal, Olga A. Rud

19 Individual evolutionary learning and zero-intelligence in the continuous double auction 225
Jasmina Arifovic, Anil Donmez, John Ledyard, Megan Tjandrasuwita

20 Using results from learning to forecast laboratory experiments to predict the effect of futures markets on spot market stability 250
Johan de Jong, Joep Sonnemans, Jan Tuinstra

21 Are you experienced? How the time spacing of traders’ market experience impacts bubble formation in experimental asset markets 267
Jason Shachat, Hang Wang

22 Monetary policy and cash flow irregularity as drivers of asset price bubbles: An experimental study 281
Dragana Draganac, Miloš Božović

23 Algorithmic trading in experimental markets with human traders: A literature survey 302
Te Bao, Elizaveta Nekrasova, Tibor Neugebauer, Yohanes E. Riyanto

24 Asset market experiments with diverse information 323
Dominik Schmidt, Thomas Stöckl

25 Experimental bank runs 347
Hubert J. Kiss, Ismael Rodriguez-Lara, Alfonso Rosa-Garcia

26 Experiential learning in finance education – Applying experimental finance methodology 362
Éva Kaczkó, Michael Razen

27 Experimental research in financial accounting 375
Daniel Reimsbach, Karen De Meyst

28 Corporate governance experiments 384
Ernan Haruvy

29 Nudging and RCTs in finance: A review of recent literature 395
Réka Heim, Jürgen Huber

30 A critical perspective on the conceptualization of risk in behavioral and experimental finance 408
Felix Holzmeister, Christoph Huber, Stefan Palan

31 Stated risk preference predicts risk appetite in structured investment 414
Doron Sonsino, Yaron Lahav, Yefim Roth