All Outputs (7)

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.