Economics at your fingertips  

Cash versus Extra-Credit Incentives in Experimental Asset Markets

Steven Tucker (), Shuze Ding (), Volodymyr Lugovskyy (), Daniela Puzzello () and Arlington Williams ()
Additional contact information
Shuze Ding: Indiana University

Working Papers in Economics from University of Waikato

Abstract: The research community in experimental economics has been increasingly encouraged to replicate studies and increase the sample size. While these suggestions have strong advantages, they also potentially increase the financial costs associated with data collection and, as a result, tamper the growth of experimental economics and limit the questions that may be addressed using experimental methods. In this paper, we explore the effectiveness of extra-credit as a reward medium, since it is financially less taxing. We focus on experimental asset markets since data is more costly to collect for these experiments, for example, a market (consisting of 8 to 12 traders) is an observation. Our treatment variable is the reward medium, either extra-credit or cash. We compare bubble measures in the two treatments and we find that bubbles observed in the extra-credit sessions are not significantly different from bubbles observed in the cash sessions. These results suggest that extra-credit is an effective reward medium in experimental asset markets.

Keywords: asset market experiments; experiment incentives (search for similar items in EconPapers)
JEL-codes: C91 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2017-10-08
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Journal Article: Cash versus extra-credit incentives in experimental asset markets (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers in Economics from University of Waikato Private Bag 3105, Hamilton, New Zealand, 3240. Contact information at EDIRC.
Bibliographic data for series maintained by Geua Boe-Gibson ().

Page updated 2022-01-16
Handle: RePEc:wai:econwp:17/21