Self-regulation and Government Oversight: First Experimental Test
|Author:||Bc. Vojtěch Mravec|
|Year:||2009 - summer|
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This paper provides empirical evidence on the Demarzo, Fishman and Hagerty (2004) Self-regulation and Government Oversight model through an economic experiment. The model predicts that, for some parameterisations of the model, self-regulation organisations on the securities market set higher regulation than needed in order to pre-empt governmental intervention. In order to experimentally test this theoretical outcome, I derive a game with 2 players and 2 actions from the model and run an experiment with 30 participants, which has confirmed the predictions of the model.
Moreover, I also test a side-hypothesis that experiment participants perform differently when choosing between column and row strategies. The experimental results do not support the side-hypothesis.
|Downloadable:|| Bachelor Thesis of Mravec