Outputs (36)

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

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

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

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.

How auctioneers set reserve prices in procurement auctions (2022)
Journal Article

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

Adolescents, Cognitive Ability, and Minimax Play (2015)
Journal Article

We conduct experiments with adolescent participants on repeated fixed play in three different zero-sum games which have mixed strategy minimax solutions. Further, we collect subject information on cognitive abilities and participation rates in compet... Read More about Adolescents, Cognitive Ability, and Minimax Play.

A Hidden Markov Model for the Detection of Pure and Mixed Strategy Play in Games (2014)
Journal Article

We propose a statistical model to assess whether individuals strategically use mixed strategies in repeated games. We formulate a hidden Markov model in which the latent state space contains both pure and mixed strategies. We apply the model to data... Read More about A Hidden Markov Model for the Detection of Pure and Mixed Strategy Play in Games.

Experiments on Learning, Methods and Voting (2014)
Journal Article

An Experimental Investigation of Auctions and Bargaining in Procurement (2014)
Journal Article

In reverse auctions, buyers often retain the right to bargain further concessions from the winners. The optimal form of such procurement is an English auction followed by an auctioneer's option to engage in ultimatum bargaining with the winners. We s... Read More about An Experimental Investigation of Auctions and Bargaining in Procurement.

The Impact of Asymmetric and Public Information on Pricing Bubbles in Experimental Asset Markets. (2013)
Journal Article

Auctioning the Right to Play Ultimatum Games and the Impact on Equilibrium Selection (2013)
Journal Article

We auction scarce rights to play the Proposer and Responder positions in ultimatum games. As a control treatment, we randomly allocate these rights and charge exogenous participation fees. These participation fee sequences match the auction price seq... Read More about Auctioning the Right to Play Ultimatum Games and the Impact on Equilibrium Selection.

Learning about learning in games through experimental control of strategic interdependence. (2012)
Journal Article

We report results from an experiment in which humans repeatedly play one of two games against a computer program that follows either a reinforcement or an experience weighted attraction learning algorithm. Our experiment shows these learning algorith... Read More about Learning about learning in games through experimental control of strategic interdependence..

Procuring Commodities: First-Price Sealed-Bid or English Auctions? (2012)
Journal Article

We use laboratory experiments to examine the relative performance of the English auction (EA) and the first-price sealed-bid auction (FPA) when procuring a commodity. The mean and variance of prices are lower in the FPA than in the EA. Bids and price... Read More about Procuring Commodities: First-Price Sealed-Bid or English Auctions?.

Procurement Auctions for Differentiated Goods. (2010)
Journal Article

We consider two mechanisms to procure differentiated goods: a sealed-bid buyer-determined auction and a dynamic-bid price-based auction with bidding credits. The sealed-bid buyer-determined auction is analogous to the “request for quote” procedure co... Read More about Procurement Auctions for Differentiated Goods..

Information aggregation in a catastrophe futures market. (2006)
Journal Article

We experimentally examine a reinsurance market in which participants have differing information regarding the probability distribution over losses. The key question is whether the market equilibrium reflects traders maximizing value with respect to t... Read More about Information aggregation in a catastrophe futures market..

Do we detect and exploit mixed strategy play by opponents? (2004)
Journal Article

We conducted an experiment in which each subject repeatedly played a game with a unique Nash equilibrium in mixed strategies against some computer-implemented mixed strategy. The results indicate subjects are successful at detecting and exploiting de... Read More about Do we detect and exploit mixed strategy play by opponents?.

Unobserved heterogeneity and equilibrium: an experimental study of Bayesian and adaptive learning in normal form games. (2004)
Journal Article

We describe an experiment based on a simple two-person game designed so that different learning models make different predictions. Econometric analysis of the experimental data reveals clear heterogeneity in the subjects’ learning behavior. But the s... Read More about Unobserved heterogeneity and equilibrium: an experimental study of Bayesian and adaptive learning in normal form games..

Hide and seek in Arizona. (2003)
Journal Article

Laboratory subjects repeatedly played one of two variations of a simple two-person zero-sum game of “hide and seek”. Three puzzling departures from the prescriptions of equilibrium theory are found in the data: an asymmetry related to the player’s ro... Read More about Hide and seek in Arizona..

Trust, the Internet, and the digital divide (2003)
Journal Article

The Internet is expected to have a positive impact on economic growth, and its adoption rate will determine the extent of this impact. In this paper, we examine how differences in willingness to trust influence Internet adoption rates across countrie... Read More about Trust, the Internet, and the digital divide.

Mixed Strategy Play and the Minimax Hypothesis (2002)
Journal Article

This paper reports on a set of experiments designed to discriminate among the possible sources of the failure of the unique mixed strategy minimax equilibrium of the O'Neill (1987) game. This is accomplished by introducing a new methodology for elici... Read More about Mixed Strategy Play and the Minimax Hypothesis.

On the Irrelevance of Risk Attitudes in Repeated Two-Outcome Games. (2001)
Journal Article

We study equilibrium and maximin play in supergames consisting of the sequential play of a finite collection of stage games, where each stage game has two outcomes for each player. We show that for two-player supergames in which each stage game is st... Read More about On the Irrelevance of Risk Attitudes in Repeated Two-Outcome Games..

An Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play. (2001)
Journal Article

We report on an experiment designed to evaluate the empirical implications of Jordan's model of Bayesian learning in games of incomplete information. A finite example is constructed in which the model generates unique predictions of subjects' choices... Read More about An Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play..

An Experimental Investigation of the Incentives to Form Agricultural Marketing Pools. (1998)
Journal Article

This paper presents theoretical extensions and laboratory tests of Hoffman and Libecap's (1994) model of individual firms' incentives to form agricultural marketing pools. The key incentives are lower variance in output prices and economies in scale... Read More about An Experimental Investigation of the Incentives to Form Agricultural Marketing Pools..