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David Schindler
@david-schindler.de

A group of researchers has attempted to replicate our work on self-control and asset market prices published in the Review of Financial Studies (doi.org/10.1093/rfs/...) and not been able confirm our findings. See doi.org/10.2139/ssrn...

doi.orgDo experimental asset market results replicate? High-powered preregistered replications of 17 claimsExperimental asset markets provide a controlled approach to studying financial markets. We attempt to replicate 17 key results from four prominent studies, coll
David Schindler
@david-schindler.de

In our experiment, we used an experimental manipulation that reduces participant's self control and then we let them trade an asset with declining value. We find strong overpricing for participants with depleted self control.

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David Schindler
@david-schindler.de

The replication efforts closely (but not perfectly) mimic our design (we are one of three papers they attempt to replicate), have substantially more power and do not detect the main effects we report in the paper.

David Schindler
@david-schindler.de

This is disappointing news for us of course, but we are grateful that the authors spent the time, energy and money to replicate our experiment. We hope that others attempt additional replications in the future to better understand if reduced self control does or does not affect asset prices.