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
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
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)
Journal Article: Cash versus extra-credit incentives in experimental asset markets (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:17/21
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 ().