All Outputs (39)

Contingent payments in procurement interactions: Experimental evidence (2024)
Journal Article
Shachat, J., Walker, M. J., & Wei, L. (2024). Contingent payments in procurement interactions: Experimental evidence. European Economic Review, 170, Article 104886. https://doi.org/10.1016/j.euroecorev.2024.104886

A primary objective of creating competition among suppliers is the procurement of higher quality goods and services at lower prices. When procuring non-standard goods, it is often difficult to write a complete specification of desired quality in the... Read More about Contingent payments in procurement interactions: Experimental evidence.

Speed traps: algorithmic trader performance under alternative market balances and structures (2023)
Journal Article
Peng, Y., Shachat, J., Wei, L., & Zhang, S. S. (2024). Speed traps: algorithmic trader performance under alternative market balances and structures. Experimental Economics, 27(2), 325-350. https://doi.org/10.1007/s10683-023-09816-8

Using double auction market experiments with both human and agent traders, we demonstrate that agent traders prioritising low latency often generate, sometimes perversely so, diminished earnings in a variety of market structures and configurations. W... Read More about Speed traps: algorithmic trader performance under alternative market balances and structures.

On the generalizability of using mobile devices to conduct economic experiments (2023)
Journal Article
Guo, Y., Shachat, J., Walker, M. J., & Wei, L. (2023). On the generalizability of using mobile devices to conduct economic experiments. Journal of Behavioral and Experimental Economics, 106, Article 102057. https://doi.org/10.1016/j.socec.2023.102057

Mobile devices enable experimental economists to collect decision-making data from more heterogeneous samples, thereby increasing the generalizability of their results. This generalizability may be compromised if the device is a relevant behavioural... Read More about On the generalizability of using mobile devices to conduct economic experiments.

A test of the Modigliani-Miller theorem, dividend policy and algorithmic arbitrage in experimental asset markets (2023)
Journal Article
Neugebauer, T., Shachat, J., & Szymczak, W. (2023). A test of the Modigliani-Miller theorem, dividend policy and algorithmic arbitrage in experimental asset markets. Journal of Banking and Finance, 154(September), Article 106814. https://doi.org/10.1016/j.jbankfin.2023.106814

Modigliani and Miller showed the market value of the company is independent of its capital structure, and suggested that dividend policy makes no difference to this law of one price. We experimentally test the Modigliani-Miller theorem in a complete... Read More about A test of the Modigliani-Miller theorem, dividend policy and algorithmic arbitrage in experimental asset markets.

Arbitrage bots in experimental asset markets (2022)
Journal Article
Angerera, M., Neugebauer, T., & Shachat, J. (2023). Arbitrage bots in experimental asset markets. Journal of Economic Behavior and Organization, 206, 262-278. https://doi.org/10.1016/j.jebo.2022.12.004

Trading algorithms are an integral component of modern asset markets. In twin experimental markets for long-lived correlated assets we examine the impact of alternative types of arbitrage-seeking algorithms. These arbitrage robot traders vary in thei... Read More about Arbitrage bots in experimental asset markets.

Are you experienced? How the time spacing of traders' market experience impacts bubble formation in experimental asset markets (2022)
Book Chapter
Shachat, J., & Wang, H. (2022). Are you experienced? How the time spacing of traders' market experience impacts bubble formation in experimental asset markets. In S. Füllbrunn, & E. Haruvy (Eds.), Handbook of Experimental Finance (267-280). Edward Elgar Publishing. https://doi.org/10.4337/9781800372337.00028

We demonstrate when market experience is spaced out over a longer period of time (weeks instead of minutes), the increase in pricing efficiency is very small - if at all - for the same population of traders. However pricing efficiency gains are subst... Read More about Are you experienced? How the time spacing of traders' market experience impacts bubble formation in experimental asset markets.

How auctioneers set reserve prices in procurement auctions (2022)
Journal Article
Shachat, J., & Tan, L. (2022). How auctioneers set reserve prices in procurement auctions. European Journal of Operational Research, 304(2), 709-728. https://doi.org/10.1016/j.ejor.2022.04.025

We introduce a behavioral model that effectively predicts auctioneers’ reserve choice patterns in English clock auctions across varying reserve price formats (whether reserve prices are set ex-ante or ex-post auction events), number of bidders and th... Read More about How auctioneers set reserve prices in procurement auctions.

Trust and Trustworthiness in Procurement Contracts with Retainage (2022)
Journal Article
Walker, M. J., Katok, E., & Shachat, J. (2023). Trust and Trustworthiness in Procurement Contracts with Retainage. Management Science, 69(6), 3492–3515. https://doi.org/10.1287/mnsc.2022.4516

In complex procurement projects, it is difficult to write enforceable contracts that condition price upon quality. Supplier non-performance becomes an acute risk, particularly when there is intense competition for the contract. An established incenti... Read More about Trust and Trustworthiness in Procurement Contracts with Retainage.

Informational price cascades and non-aggregation of asymmetric information in experimental asset markets (2022)
Journal Article
Shachat, J., & Srinivasan, A. (2022). Informational price cascades and non-aggregation of asymmetric information in experimental asset markets. Journal of Behavioral Finance, 23(4), 388-407. https://doi.org/10.1080/15427560.2022.2081970

We report on experimental markets which generate an abject failure of the aggregation of asymmetric information. While realized prices have zero correlation with fundamental values, surprisingly, these are not highly volatile. The non-aggregation of... Read More about Informational price cascades and non-aggregation of asymmetric information in experimental asset markets.

An experimental study of intra- and international cooperation: Chinese and American play in the Prisoner's Dilemma Game (2022)
Journal Article
Kuroda, M., Li, J., Shachat, J., Wei, L., & Zhu, B. (2022). An experimental study of intra- and international cooperation: Chinese and American play in the Prisoner's Dilemma Game. China Economic Review, 74, Article 101807. https://doi.org/10.1016/j.chieco.2022.101807

We study whether intra- and international groups have different cooperation rates in the Prisoner's Dilemma Game. We report on an experiment in which university students in China and America engage in a single iteration of the game, complete belief e... Read More about An experimental study of intra- and international cooperation: Chinese and American play in the Prisoner's Dilemma Game.

Cognitive stress and learning economic order quantity inventory management: An experimental investigation (2022)
Journal Article
Pan, J., Shachat, J., & Wei, S. (2022). Cognitive stress and learning economic order quantity inventory management: An experimental investigation. Decision Analysis, 19(3), 229-254. https://doi.org/10.1287/deca.2022.0450

We use laboratory experiments to evaluate the effects of cognitive stress on inventory management decisions in a finite horizon economic order quantity (EOQ) model. We manipulate two sources of cognitive stress. First, we vary individuals’ participat... Read More about Cognitive stress and learning economic order quantity inventory management: An experimental investigation.

Individual Rationality and Market Efficiency (2021)
Journal Article
Gjerstad, S., & Shachat, J. (2021). Individual Rationality and Market Efficiency. Nonlinear Dynamics, Psychology, and Life Sciences, 25(4), 395-406

Smith’s (1962) demonstration that prices and allocations quickly converge to the competitive equilibrium in the continuous double auction (CDA) remains one of the most important results in experimental economics. Market experiments and exchange model... Read More about Individual Rationality and Market Efficiency.

Viral social media videos can raise pro-social behaviours when an epidemic arises (2021)
Journal Article
Guo, Y., Shachat, J., Walker, M., & Wei, L. (2021). Viral social media videos can raise pro-social behaviours when an epidemic arises. Journal of the Economic Science Association, 7(2), 120-138. https://doi.org/10.1007/s40881-021-00104-w

Access to information via social media is one of the biggest differentiators of public health crises today. During the early stages of the Covid-19 outbreak in January 2020, we conducted an experiment in Wuhan, China to assess the impact of viral soc... Read More about Viral social media videos can raise pro-social behaviours when an epidemic arises.

How the onset of the Covid-19 pandemic impacted pro-social behaviour and individual preferences: Experimental evidence from China (2021)
Journal Article
Shachat, J., Walker, M., & Wei, L. (2021). How the onset of the Covid-19 pandemic impacted pro-social behaviour and individual preferences: Experimental evidence from China. Journal of Economic Behavior and Organization, 190, 480-494. https://doi.org/10.1016/j.jebo.2021.08.001

We present experimental evidence on how pro-sociality, trust and attitudes towards risk and ambiguity evolved over the six weeks following the imposition of stringent Covid-19 related lockdown measures in the Hubei province of China. We compare incen... Read More about How the onset of the Covid-19 pandemic impacted pro-social behaviour and individual preferences: Experimental evidence from China.

The Impact of an Epidemic: Experimental Evidence on Preference Stability from Wuhan (2021)
Journal Article
Shachat, J., Walker, M., & Wei, L. (2021). The Impact of an Epidemic: Experimental Evidence on Preference Stability from Wuhan. AEA Papers and Proceedings, 111, 302-306. https://doi.org/10.1257/pandp.20211002

We examine how the outbreak of the COVID-19 virus in the Hubei province of China impacted pro-social behavior and attitudes toward risk and uncertainty. The study repeatedly applies a panel of financially incentivized individual and strategic decisio... Read More about The Impact of an Epidemic: Experimental Evidence on Preference Stability from Wuhan.

The development of risk aversion and prudence in Chinese children and adolescents (2020)
Journal Article
Heinrich, T., & Shachat, J. (2020). The development of risk aversion and prudence in Chinese children and adolescents. Journal of Risk and Uncertainty, 61(3), 263-287. https://doi.org/10.1007/s11166-020-09340-7

This study experimentally evaluates the risk preferences of children and adolescents living in an urban Chinese environment. We use a simple binary choice task that tests risk aversion, as well as prudence. This is the first test for prudence in chil... Read More about The development of risk aversion and prudence in Chinese children and adolescents.

Cognitive reflection and economic order quantity inventory management: An experimental investigation (2020)
Journal Article
Pan, J., Shachat, J., & Wei, S. (2020). Cognitive reflection and economic order quantity inventory management: An experimental investigation. Managerial and Decision Economics, 41(6), 998-1009. https://doi.org/10.1002/mde.3154

We use laboratory experiments to evaluate the effects of individuals' cognitive abilities on their behavior in a finite horizon economic order quantity model. Participants' abilities to balance intuitive judgment with cognitive deliberations are meas... Read More about Cognitive reflection and economic order quantity inventory management: An experimental investigation.

Improving intergroup relations through actual and imagined contact: Field experiments with Malawian shopkeepers and Chinese migrants (2018)
Journal Article
Smyth, R., Gu, J., Mueller, A., Nielson, I., & Shachat, J. (2019). Improving intergroup relations through actual and imagined contact: Field experiments with Malawian shopkeepers and Chinese migrants. Economic Development and Cultural Change, 68(1), 273-303. https://doi.org/10.1086/700569

We examine the ability of intergroup contact to ameliorate intergroup relationship in an entrepreneurial and developing world context. Specifically, we provide a simple decision model of how an entrepreneur chooses to invest time to extend their prof... Read More about Improving intergroup relations through actual and imagined contact: Field experiments with Malawian shopkeepers and Chinese migrants.

The Hayek hypothesis and long run competitive equilibrium: an experimental investigation (2015)
Journal Article
Shachat, J., & Zhang, Z. (2017). The Hayek hypothesis and long run competitive equilibrium: an experimental investigation. The Economic Journal, 127(599), 199-228. https://doi.org/10.1111/ecoj.12249

We report on an experiment investigating whether the Hayek Hypothesis (Smith, 1982) extends to the long run setting. We consider two environments; one with a production technology having a U-shaped long run average cost curve and a single competitive... Read More about The Hayek hypothesis and long run competitive equilibrium: an experimental investigation.

An experimental study of the effect of intergroup contact on attitudes in urban China (2015)
Journal Article
Nielsen, I., Gu, J., Shachat, J., Smyth, R., & Peng, Y. (2016). An experimental study of the effect of intergroup contact on attitudes in urban China. Urban Studies, 53(14), 2991-3006. https://doi.org/10.1177/0042098015598730

A large body of literature attests to the growing social divide between urban residents and rural–urban migrants in China’s cities. This study uses a randomised experiment to test the effect of intergroup contact on attitudes between a group of urban... Read More about An experimental study of the effect of intergroup contact on attitudes in urban China.