Social Norms and Bargaining for Others
Digital EventOnline Research Seminar 3:00 pm, Thursday, 4 November 2021 Delegating bargaining to an intermediary agent is common practice in many situations. The proposer, while not actively bargaining, sets constraints on the intermediary agent’s offer. We study ultimatum games where proposers delegate bargaining to an intermediary agent by setting boundaries on either end of the offer. We find that after accounting for truncation, intermediaries treat these boundaries similarly to a non-binding proposer suggestion. Specifically, we benchmark on a nonbinding setting where the proposer simply states the offer he would like to have made. We find that specifying a constraint on the intermediary [...]
Retail Investors’ valuation of structured investment instruments
Digital EventOnline Research Seminar 3:00 pm, Thursday, 9 December 2021 The retail interest in structured investment instruments has expanded over the last decades due to the negligible deposit interest rates and the lingering uncertainty in the stock markets. Instruments that mix capital protection with a possibility to gain from positive performance of an underlying asset appear especially popular. The first part of the talk will briefly survey the market for retail-oriented structured investment instruments and discuss the results of the accumulating research on the topic. The second part of the talk will present results from experiments aimed at characterizing the preferences of [...]