Project Details
Projekt
Regulation and taxation of financial markets (B07)
Subject Area
Accounting and Finance
Term
since 2017
Project identifier
Deutsche Forschungsgemeinschaft (DFG) - Project number 280092119
This project analyses the interactive effects of incentives and behavioral traits on financial market stability. In the first funding phase, we established experimentally that moral-hazard incentives change the beliefs of subjects, and lead them to overestimate their probability of success. We showed theoretically that manager overconfidence further increases the incentives of banks to offer high bonuses. Our research agenda for the next funding phase builds on these results. We shall analyze how overconfidence affects matching of managers and firms, we want to study the formation of asset market bubbles, and we want to engage in an empirical study on overconfidence using the SOEP.
DFG Programme
CRC/Transregios
Subproject of
TRR 190:
Rationality and Competition: The Economic Performance of Individuals and Firms
Applicant Institution
Humboldt-Universität zu Berlin
Project Heads
Professor Dr. Andreas Haufler; Professor Dr. Frank Heinemann
