“Emotions and market activity: Causes or consequences?” w. Daniel Gotsman and Charles Noussair, revise & resubmit at the Economic Journal [pdf]
Abstract: Many observers have asserted that there is a correlation between emotions and asset market behavior, with Joviality associated with high prices and Fear with low prices. In this paper, we conduct a laboratory experiment to examine the direction of causality in this relationship. The results show that incidental emotions, induced by videos shown in virtual reality, do not influence market prices. However, there is a strong relationship between market activity and subsequent emotional states, suggesting that the correlation between emotions and market activity is driven by the influence of market activity on emotions, not the other way around.
“Minimum-effort game under stochastic monitoring” second year paper, accepted at the Journal of Behavioral and Experimental Economics [pdf]
Abstract: In this paper, I designed a coordination device in minimum-effort games called “stochastic monitoring” and tested its effectiveness in the lab. This device is characterized by: (1) stochastic (negative) material consequences, and (2) non-deterrence, in the sense that the coordination device does not remove any pure-strategy Nash equilibria in the basic minimum-effort game. The results show that stochastic monitoring significantly improved coordination among groups stuck at inefficient outcomes. This effect was stronger under a relatively high punishment, low monitoring probability scheme compared to other low punishment, high probability alternatives. Further analysis reveals that stochastic monitoring functioned as a coordination device, despite having the feature of material incentives.
Qu, Yiwei, and Ying Zhang. “The change of demand structure in the process of economic development: Cross-economy comparative analysis in the middle-income stage,” Economic Review, 2018, (05), 160-170. (in Chinese)