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

PublishedTitleAuthor/sProgram AreaKeywordsPublished
2019

Peer Effects and Risk Sharing in Experimental Asset Markets

European Economic Review
Sascha Baghestanian, Paul Gortner, Joël van der Weele Household Finance, Financial Markets, Experiment Center peer effects, laboratory experiments, risk taking, asset markets2019
2017

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

Journal of Financial Economics
Florian Hett, Alexander Schmidt Financial Intermediation, Transparency Lab, Experiment Center Bailout, Implicit Guarantees, Too-Big-To-Fail, Market Discipline2017
2017

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

Experimental Economics
Sascha Baghestanian, Paul Gortner, Baptiste Massenot Law and Finance, Experiment Center compensation, liquidity, experimental asset markets, bubbles2017
2017

Incentive-Based Capital Requirements

Management Science
Christian Eufinger, Andrej Gill Law and Finance, Transparency Lab, Experiment Center Basel III, capital regulation, compensation, leverage, risk2017
2017

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

Review of Finance
Michael Kosfeld, Ulrich Schüwer Household Finance, Experiment Center consumer education,financial literacy, bounded rationality, competition, regulation2017
2015

Performance Benefits of Tight Control

The Journal of Private Equity
Andrej Gill, Nikolai Visnjic Law and Finance, Transparency Lab, Experiment Center private equity, leveraged buyouts, active shareholders, ownership concentration, corporate governance2015
2015

Anchoring in Experimental Asset Markets

Journal of Economic Behavior & Organization
Sascha Baghestanian, Todd B. Walker Financial Markets, Experiment Center Experimental Asset Markets, Anchoring, Bubbles2015

Working Papers

TitleAuthor/sNo.Program AreaYearKeywordsPublished

Incentive-Based Capital Requirements

Christian Eufinger, Andrej Gill9 Law and Finance, Transparency Lab, Experiment Center 2013Basel III, capital regulation, compensation, leverage, risk Jan 2013

Insight Private Equity

Andrej Gill, Nikolai Visnjic23 Law and Finance, Transparency Lab, Experiment Center 2013private equity, leveraged buyouts, active shareholders, corporate restructuring, operational performance Jan 2013

Performance Benefits of Tight Control

Andrej Gill, Nikolai Visnjic24 Law and Finance, Transparency Lab, Experiment Center 2013private equity, leveraged buyouts, active shareholders, ownership concentration, corporate governance Jan 2013

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

Florian Hett, Alexander Schmidt36 Financial Intermediation, Transparency Lab, Experiment Center 2013Bailout, Implicit Guarantees, Too-Big-To-Fail, Market Discipline Jan 2013

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

Michael Kosfeld, Ulrich Schüwer47 Household Finance, Experiment Center 2014consumer education,financial literacy, bounded rationality, competition, regulation Jan 2014

Anchoring in Experimental Asset Markets

Sascha Baghestanian, Todd B. Walker54 Financial Markets, Experiment Center 2014Experimental Asset Markets, Anchoring, Bubbles Jan 2014

Measuring Ambiguity Aversion: A Systematic Experimental Approach

Jan Pieter Krahnen, Peter Ockenfels, Christian Wilde55 Financial Intermediation, Financial Markets, Transparency Lab, Experiment Center 2014ambiguity, valuation discount, experimental economics Jan 2014

Peer Effects and Risk Sharing in Experimental Asset Markets

Sascha Baghestanian, Paul Gortner, Joël van der Weele67 Household Finance, Financial Markets, Experiment Center 2014peer effects, laboratory experiments, risk taking, asset markets Jan 2014

Credit Cycles: Experimental Evidence

Baptiste Massenot104 Macro Finance, Experiment Center 2015- Jan 2015

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

Sascha Baghestanian, Paul Gortner, Baptiste Massenot108 Law and Finance, Experiment Center 2015compensation, liquidity, experimental asset markets, bubbles Jan 2015

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

Markus Kröll, Devesh Rustagi134 Law and Finance, Experiment Center 2016Motivation for honesty, asymmetric information, cheating, informal markets, die game, milk, India Jan 2016

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

Florian Hett, Felix Schmidt203 Household Finance, Experiment Center 2018heterogeneity, competitiveness; contest; rank feedback, relative performance evaluation Apr 2018

Leverage and Bubbles: Experimental Evidence

Paul Gortner, Baptiste Massenot239 Macro Finance, Experiment Center 2018 Dec 2018

Belief Formation and Belief Updating under Ambiguity: Evidence from Experiments

Wenhui Li, Christian Wilde251 Financial Markets, Experiment Center 2019ambiguity, learning strategy, belief updates, non-Bayesian updates, pessimism, laboratory experiments Jun 2019

The Terminator of Social Welfare? The Economic Consequences of Algorithmic Discrimination

Benjamin M. Abdel-Karim, Kevin Bauer, Oliver Hinz, Michael Kosfeld, Nicolas Winfried Pfeuffer287 Financial Intermediation, Experiment Center 2020 Algorithmic Discrimination, Artificial Intelligence, Game Theory, Economics, Batch Learning Sep 2020

Policy Papers

YearTitleAuthor/sProgram AreaKeywordsYear
Jul 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 Jul 2018
Sep 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 Sep 2017

Research Projects

CategoryProjectResearcherProject DurationKeywordsProject IDPublication Count
Household Finance, Experiment Center

Social Identity Bias in Information Processing and Information Demand

Kevin Bauer, Yan Chen, Florian Hett, Michael Kosfeld20202324051
Household Finance, Experiment Center

Experiential Learning Through FinTech Applications

Andrej Gill, Florian Hett2020experiential learning, goal setting, personal finance management, financial literacy, overconfidence2324041
Household Finance, Experiment Center

Collective Action and Institution Formation - The Role of Group Size

Julian Detemple, Michael Kosfeld20202324031
Household Finance, Experiment Center

Moral (Mis)Behavior in the Era of Big Data

Victor Klockmann, Marie-Claire Villeval, Alicia von Schenk20202324021
Household Finance, Experiment Center

Moral Decisions and the Externality of AI Usage

Victor Klockmann, Marie-Claire Villeval, Alicia von Schenk20202324011
Financial Intermediation, Experiment Center

Digitalization of the Financial System

Kevin Bauer, Oliver Hinz2020Digital economics; Artificial intelligence; Human machine interaction; Algorithmic Unfairness; Hybrid human-machine behavior; Algorithms; Machine Learning, Decision Making;1231011
Financial Markets, Experiment Center

Experimental Asset Markets - Price Formation in the Presence of Ambiguity

Wenhui Li, Peter Ockenfels, Christian Wilde2019Experimental asset markets, information transmission, price formation, ambiguity1331021
Household Finance, Experiment Center

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

Andrej Gill, Florian Hett2019financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences, online experiment, preference heterogeneity213371
Household Finance, Experiment Center

Heterogeneity in the Sensitivity to Dynamic Incentives

Florian Hett, Felix Schmidt2018Peer Effects, Laboratory Experiments, Experimental Finance, Tournaments, Behavioral Finance, Rank Incentives213291
Law and Finance, Experiment Center

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

Renée Adams, Andreas Grunewald, Ferdinand von Siemens2017Corporate Boards, Gender Diversity, Risk Taking, Banking, Teams212231
Household Finance, Experiment Center

Financial Decision Making and Present Bias

Andrej Gill, Florian Hett, Johannes Tischer2017financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences, online experiment, randomized controlled trial, preference heterogeneity, commitment devices, nudging213211
Financial Intermediation, Experiment Center

Measuring Time Inconsistency by Using Bank Account Data

Andrej Gill, Florian Hett2016financial mistakes, transaction data, household finance, time-inconsistency, present bias, time preferences216401
Household Finance, Experiment Center

Financial Networks in the Field

Paul Gortner, Joël van der Weele2016216501
Financial Markets, Experiment Center

Experimental Asset Markets – Regulation and Design of Fragmented Markets

Peter Ockenfels, Christian Wilde2016216201
Financial Intermediation, Experiment Center

Financial Interactions in the Presence of Ambiguity

Wenhui Li, Peter Ockenfels, Christian Wilde2016216501
Financial Intermediation, Law and Finance, Financial Markets, Macro Finance, Experiment Center

Capital Requirements and Financial Stability: Experimental Evidence

Paul Gortner, Baptiste Massenot2016216501
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 Walz2016216401
Macro Finance, Experiment Center

Fragility of Credit Markets

Sascha Baghestanian, Baptiste Massenot2014Experimental Loan Markets, Gambler's Fallacy, House Money Effect, Break Even Effect115281
Household Finance, Transparency Lab, Experiment Center

Non-Standard Preferences and Financial Decision Making

Sascha Baghestanian, Paul Gortner, Matthias Heinz, Heiner Schumacher, Joël van der Weele2014Social Preferences, Financial Institutions, Incentives112231
Financial Markets, Experiment Center

Excessive Risk Taking, Compensation Schemes and Financial Market Stability

Sascha Baghestanian, Paul Gortner, Baptiste Massenot2014Compensation Schemes, Bubbles, Risk Seeking, Liquidity, Experimental Asset Markets112261
Financial Markets, Experiment Center

Non-Standard Preferences in Experimental Asset Markets

Matthias Blonski, Paul Gortner, Heiner Schumacher, Joël van der Weele2014laboratory experiments, experimental asset markets, peer effects, social preferences112311
Law and Finance, Experiment Center

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

Markus Kröll, Devesh Rustagi2014Corruption, economic experiments, India, Milkmen112281
Financial Intermediation, Transparency Lab, Experiment Center

Experimental Studies on Ambiguity and Ambiguity Aversion

Jan Pieter Krahnen, Peter Ockenfels, Christian Wilde2013ambiguity, ambiguity aversion, valuation discount, experimental economics111251
Financial Intermediation, Systemic Risk Lab, Transparency Lab, Experiment Center

Corporate Governance in Banks

Tim Eisert, Christian Eufinger, Andrej Gill, Christian Hirsch, Uwe Walz2013Corporate Governance, Financial Institutions, Management Compensation, Moral Hazard, Ownership Structure, Risk Shifting112211

Current Research Team

ResearcherPosition
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