[HTML][HTML] From behavioural economics to neuroeconomics to decision neuroscience: the ascent of biology in research on human decision making
Here, we briefly review the evolution of research on human decision-making over the past
few decades. We discern a trend whereby biology moves from subserving economics …
few decades. We discern a trend whereby biology moves from subserving economics …
Experimental research on asset pricing
Experimental Research on Asset Pricing Page 1 9 EXPERIMENTAL RESEARCH ON ASSET
PRICING Charles N. Noussair Tilburg University Steven Tucker The University of Waikato 1 …
PRICING Charles N. Noussair Tilburg University Steven Tucker The University of Waikato 1 …
Low interest rates and risk-taking: Evidence from individual investment decisions
How do low interest rates affect investor behavior? We demonstrate that individuals “reach
for yield,” that is, have a greater appetite for risk-taking when interest rates are low. Using …
for yield,” that is, have a greater appetite for risk-taking when interest rates are low. Using …
Using neural data to test a theory of investor behavior: An application to realization utility
We conduct a study in which subjects trade stocks in an experimental market while we
measure their brain activity using functional magnetic resonance imaging. All of the subjects …
measure their brain activity using functional magnetic resonance imaging. All of the subjects …
Ambiguity in asset markets: Theory and experiment
This paper studies the impact of ambiguity and ambiguity aversion on equilibrium asset
prices and portfolio holdings in competitive financial markets. It argues that attitudes toward …
prices and portfolio holdings in competitive financial markets. It argues that attitudes toward …
Estimating ambiguity aversion in a portfolio choice experiment
We report a portfolio‐choice experiment that enables us to estimate parametric models of
ambiguity aversion at the level of the individual subject. The assets are Arrow securities that …
ambiguity aversion at the level of the individual subject. The assets are Arrow securities that …
[HTML][HTML] Cortisol and testosterone increase financial risk taking and may destabilize markets
It is widely known that financial markets can become dangerously unstable, yet it is unclear
why. Recent research has highlighted the possibility that endogenous hormones, in …
why. Recent research has highlighted the possibility that endogenous hormones, in …
Gender differences and dynamics in competition: The role of luck
In a real effort experiment with repeated competition we find striking differences in how the
work effort of men and women responds to previous wins and losses. For women, losing per …
work effort of men and women responds to previous wins and losses. For women, losing per …
CAPM: an absurd model
The Capital Asset Pricing Model (CAPM) is about expected return. If you find a formula for
expected returns that works well in the real markets, would you publish it? Before or after …
expected returns that works well in the real markets, would you publish it? Before or after …
Exploring the nature of “trader intuition”
Experimental evidence has consistently confirmed the ability of uninformed traders, even
novices, to infer information from the trading process. After contrasting brain activation in …
novices, to infer information from the trading process. After contrasting brain activation in …