Experiment Center

Economic experiments – be it in the lab or the field – provide a valuable method to explore the foundations, mechanisms, and implications of economic decision-making in financial contexts and institutions. Researchers at the SAFE Experiment Center use this method to study key questions, for example, in household finance, corporate governance, or financial markets. Experiments help to identify causal relations, measure “behavioral heterogeneity” (e.g., in economic preferences or beliefs), as well as assist policymakers in evaluating the effects of particular interventions and institutions.

The SAFE Experiment Center is a collaboration between the Leibniz Institute for Financial Research SAFE and the Frankfurt Laboratory for Experimental Economic Research FLEX.


Publications

Published Title Author/s Program Area Keywords Published
2019

Peer Effects and Risk Sharing in Experimental Asset Markets

Sascha Baghestanian, Paul Gortner, Joël van der Weele European Economic Review Household Finance, Financial Markets, Experiment Center peer effects, laboratory experiments, risk taking, asset markets 2019
2017

Bank Rescues and Bailout Expectations: The Erosion of Market Discipline During the Financial Crisis

Florian Hett, Alexander Schmidt Journal of Financial Economics Financial Intermediation, Transparency Lab, Experiment Center Bailout, Implicit Guarantees, Too-Big-To-Fail, Market Discipline 2017
2017

Compensation Schemes, Liquidity Provision, and Asset Prices: An Experimental Analysis

Sascha Baghestanian, Paul Gortner, Baptiste Massenot Experimental Economics Law and Finance, Experiment Center compensation, liquidity, experimental asset markets, bubbles 2017
2017

Incentive-Based Capital Requirements

Christian Eufinger, Andrej Gill Management Science Law and Finance, Transparency Lab, Experiment Center Basel III, capital regulation, compensation, leverage, risk 2017
2017

Add-On Pricing in Retail Financial Markets and the Fallacies of Consumer Education

Michael Kosfeld, Ulrich Schüwer Review of Finance Household Finance, Experiment Center consumer education,financial literacy, bounded rationality, competition, regulation 2017
2015

Performance Benefits of Tight Control

Andrej Gill, Nikolai Visnjic The Journal of Private Equity Law and Finance, Transparency Lab, Experiment Center private equity, leveraged buyouts, active shareholders, ownership concentration, corporate governance 2015
2015

Anchoring in Experimental Asset Markets

Sascha Baghestanian, Todd B. Walker Journal of Economic Behavior & Organization Financial Markets, Experiment Center Experimental Asset Markets, Anchoring, Bubbles 2015

Working Papers

Title Author/s No. Program Area Year Keywords Published

Incentive-Based Capital Requirements

Christian Eufinger, Andrej Gill 9 Transparency Lab, Law and Finance, Experiment Center 2013 Basel III, capital regulation, compensation, leverage, risk 201301

Insight Private Equity

Andrej Gill, Nikolai Visnjic 23 Law and Finance, Transparency Lab, Experiment Center 2013 private equity, leveraged buyouts, active shareholders, corporate restructuring, operational performance 201301

Performance Benefits of Tight Control

Andrej Gill, Nikolai Visnjic 24 Law and Finance, Transparency Lab, Experiment Center 2013 private equity, leveraged buyouts, active shareholders, ownership concentration, corporate governance 201301

Bank Rescues and Bailout Expectations: The Erosion of Market Discipline During the Financial Crisis

Florian Hett, Alexander Schmidt 36 Transparency Lab, Financial Intermediation, Experiment Center 2013 Bailout, Implicit Guarantees, Too-Big-To-Fail, Market Discipline 201301

Add-On Pricing in Retail Financial Markets and the Fallacies of Consumer Education

Michael Kosfeld, Ulrich Schüwer 47 Household Finance, Experiment Center 2014 consumer education,financial literacy, bounded rationality, competition, regulation 201401

Anchoring in Experimental Asset Markets

Sascha Baghestanian, Todd B. Walker 54 Financial Markets, Experiment Center 2014 Experimental Asset Markets, Anchoring, Bubbles 201401

Measuring Ambiguity Aversion: A Systematic Experimental Approach

Jan Pieter Krahnen, Peter Ockenfels, Christian Wilde 55 Financial Intermediation, Financial Markets, Transparency Lab, Experiment Center 2014 ambiguity, valuation discount, experimental economics 201401

Peer Effects and Risk Sharing in Experimental Asset Markets

Sascha Baghestanian, Paul Gortner, Joël van der Weele 67 Household Finance, Financial Markets, Experiment Center 2014 peer effects, laboratory experiments, risk taking, asset markets 201401

Credit Cycles: Experimental Evidence

Baptiste Massenot 104 Macro and Finance, Experiment Center 2015 - 201501

Compensation Schemes, Liquidity Provision, and Asset Prices: An Experimental Analysis

Sascha Baghestanian, Paul Gortner, Baptiste Massenot 108 Law and Finance, Experiment Center 2015 compensation, liquidity, experimental asset markets, bubbles 201501

Reputation, Honesty, and Cheating in Informal Milk Markets in India

Markus Kröll, Devesh Rustagi 134 Law and Finance, Experiment Center 2016 Motivation for honesty, asymmetric information, cheating, informal markets, die game, milk, India 201601

Pushing Through or Slacking Off? Heterogeneity in the Reaction to Rank Feedback

Florian Hett, Felix Schmidt 203 Household Finance, Experiment Center 2018 heterogeneity, competitiveness; contest; rank feedback, relative performance evaluation 201804

Leverage and Bubbles: Experimental Evidence

Paul Gortner, Baptiste Massenot 239 Macro and Finance, Experiment Center 2018 201812

Belief Formation and Belief Updating under Ambiguity: Evidence from Experiments

Wenhui Li, Christian Wilde 251 Financial Markets, Experiment Center 2019 ambiguity, learning strategy, belief updates, non-Bayesian updates, pessimism, laboratory experiments 201906

Policy Papers

Year Title Author/s Program Area Keywords Year
July 2018

Measuring Time Inconsistency Using Financial Transaction Data

Andrej Gill, Florian Hett, Johannes Tischer Household Finance, Experiment Center financial transaction data, financial decision-making, time inconsistency, present bias 2018-07
September 2017

Undermined Market Discipline: The Role of Bank Rescues and Bailout Expectations

Florian Hett, Johannes Kasinger Financial Intermediation, Experiment Center bailout, market discipline, financial institutions, financial crisis, banks 2017-09

Research Projects

Category Project Researcher Project Duration Keywords Project ID Publication Count
Household Finance, Experiment Center

Moral (Mis)Behavior in the Era of Big Data

Victor Klockmann, Marie-Claire Villeval, Alicia von Schenk 2020 232402 0
Household Finance, Experiment Center

Moral Decisions and the Externality of AI Usage

Victor Klockmann, Marie-Claire Villeval, Alicia von Schenk 2020 232401 0
Financial Intermediation, Experiment Center

Digitalization of the Financial System

Kevin Bauer, Oliver Hinz 2020 Digital economics; Artificial intelligence; Human machine interaction; Algorithmic Unfairness; Hybrid human-machine behavior; Algorithms; Machine Learning, Decision Making; 123101 0
Financial Markets, Experiment Center

Experimental Asset Markets - Price Formation in the Presence of Ambiguity

Wenhui Li, Peter Ockenfels, Christian Wilde 2019 Experimental asset markets, information transmission, price formation, ambiguity 133102 1
Household Finance, Experiment Center

Using Behavioral Experiments to Capture Time Inconsistency in Households Financial Decision Making

Andrej Gill, Florian Hett 2019 financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences, online experiment, preference heterogeneity 21337 0
Household Finance, Experiment Center

Heterogeneity in the Sensitivity to Dynamic Incentives

Florian Hett, Felix Schmidt 2018 Peer Effects, Laboratory Experiments, Experimental Finance, Tournaments, Behavioral Finance, Rank Incentives 21329 1
Law and Finance, Experiment Center

Gender Diversity, Decision Rules, and the Risk Appetite of Teams

Renée Adams, Andreas Grunewald, Ferdinand von Siemens 2017 Corporate Boards, Gender Diversity, Risk Taking, Banking, Teams 21223 0
Household Finance, Experiment Center

Financial Decision Making and Present Bias

Andrej Gill, Florian Hett, Johannes Tischer 2017 financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences, online experiment, randomized controlled trial, preference heterogeneity, commitment devices, nudging 21321 1
Experiment Center, Financial Intermediation

Measuring Time Inconsistency by Using Bank Account Data

Andrej Gill, Florian Hett 2016 financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences 21640 1
Household Finance, Experiment Center

Financial Networks in the Field

Paul Gortner, Joël van der Weele 2016 21650 1
Macro and Finance, Financial Markets, Experiment Center

Bailouts and Financial Stability: Experimental Evidence

Paul Gortner, Baptiste Massenot 2016 21650 1
Financial Markets, Experiment Center

Experimental Asset Markets – Regulation and Design of Fragmented Markets

Peter Ockenfels, Christian Wilde 2016 21620 1
Financial Intermediation, Experiment Center

Financial Interactions in the Presence of Ambiguity

Wenhui Li, Peter Ockenfels, Christian Wilde 2016 21650 1
Macro and Finance, Financial Intermediation, Law and Finance, Financial Markets, Experiment Center

Capital Requirements and Financial Stability: Experimental Evidence

Paul Gortner, Baptiste Massenot 2016 21650 1
Financial Intermediation, Experiment Center

Banking Structure and Dynamics of Small and Medium Sized Enterprises

Douglas Cumming, Christian Eufinger, Andrej Gill, David Heller, Jan Krzyzanowski, Uwe Walz 2016 21640 1
Macro and Finance, Experiment Center

Fragility of Credit Markets

Sascha Baghestanian, Baptiste Massenot 2014 Experimental Loan Markets, Gambler's Fallacy, House Money Effect, Break Even Effect 11528 1
Transparency Lab, Experiment Center, Household Finance

Non-Standard Preferences and Financial Decision Making

Sascha Baghestanian, Paul Gortner, Matthias Heinz, Heiner Schumacher, Joël van der Weele 2014 Social Preferences, Financial Institutions, Incentives 11223 1
Experiment Center, Financial Markets

Excessive Risk Taking, Compensation Schemes and Financial Market Stability

Sascha Baghestanian, Paul Gortner, Baptiste Massenot 2014 Compensation Schemes, Bubbles, Risk Seeking, Liquidity, Experimental Asset Markets 11226 1
Experiment Center, Financial Markets

Non-Standard Preferences in Experimental Asset Markets

Matthias Blonski, Paul Gortner, Heiner Schumacher, Joël van der Weele 2014 laboratory experiments, experimental asset markets, peer effects, social preferences 11231 1
Law and Finance, Experiment Center

Corruption in the Lab and in the Field: Evidence from a Market for Credence Goods

Markus Kröll, Devesh Rustagi 2014 Corruption, economic experiments, India, Milkmen 11228 1
Financial Intermediation, Transparency Lab, Experiment Center

Experimental Studies on Ambiguity and Ambiguity Aversion

Jan Pieter Krahnen, Peter Ockenfels, Christian Wilde 2013 ambiguity, ambiguity aversion, valuation discount, experimental economics 11125 1
Transparency Lab, Systemic Risk Lab, Experiment Center, Financial Intermediation

Corporate Governance in Banks

Tim Eisert, Christian Eufinger, Andrej Gill, Christian Hirsch, Uwe Walz 2013 Corporate Governance, Financial Institutions, Management Compensation, Moral Hazard, Ownership Structure, Risk Shifting 11221 1

Current Research Team

Researcher Position
Bauer, Kevin Junior Researcher
Gill, Andrej External Researcher
Hett, Florian External Researcher
Klockmann, Victor External Researcher
Kosfeld, Michael Senior Researcher, SAFE Fellow
Laudenbach, Christine External Researcher
Li, Wenhui Research Assistant
Ockenfels, Peter Senior Researcher, SAFE Fellow
Poensgen, David External Researcher
Sabet, Navid External Researcher
von Schenk, Alicia External Researcher
von Siemens, Ferdinand External Researcher, SAFE Fellow
Wilde, Christian External Researcher, Research Affiliate