Max R. P. Grossmann: Research

AI-generated imagery visualizing this project

z-Tree unleashed: A novel client-integrating architecture for conducting z-Tree experiments over the Internet

with Duch, M. L. & Lauer, T. Journal of Behavioral and Economic Finance, 2020. Published version

▸ Abstract

We present z-Tree unleashed, a novel approach and set of scripts to aid the implementation of computerized behavioral experiments outside the laboratory. z-Tree unleashed enables subjects to join the experiment using a web portal that requires no software apart from a web browser. Experimenters are likewise enabled to administer their experiments from anywhere in the world. Except for z-Tree itself, z-Tree unleashed is entirely based on free and open-source software. In this paper we give a high-level overview of z-Tree unleashed’s features and benefits and its design. We also show how to set up the server and demonstrate the steps required for conducting an entire experiment. We subsequently explain how to leverage the security and routing features of a virtual private network with z-Tree unleashed, enabling servers to securely run behind routers.

Knowledge and Freedom: Evidence on the Relationship Between Information and Paternalism

Working paper · New version coming soon! · Replication package

▸ Abstract

We study the relationship between information and paternalism. When is autonomy granted to a decision-maker conditional on their knowledge, and if no autonomy is granted, what form will intervention take? Our analysis is concerned with the behavior of policymakers (“Choice Architects”). We use a simple experimental design to vary the amount of ambiguity inherent in a binary lottery. In this experiment, we examine to which degree decision-maker knowledge matters in terms of restrictions on the decision-maker's freedom of choice. We find that less ambiguity leads to fewer interventions on the extensive margin. Which option is imposed is a matter of personal Choice Architect preference, replicating previous results in the literature. A second reveals highlights that if Choice Architects do not know better, they rely on their own preference when choosing the intensive margin, with beliefs about others' behavior having a small but statistically significant effect. When Choice Architects are informed about the decision-maker’s hypothetical full-information choice, this information is used to determine the intensive margin. However, the null hypothesis that Choice Architects employ their own preference to the same extent as the decision-maker’s counterfactual choice cannot be rejected. Further analyses show that Choice Architects are more willing to impose a riskless option, as if it were a bliss point. This is an important qualification to what has been termed “projective paternalism.” Choice Architects disproportionately want the decision-maker to decide informedly, even when they would be able to strategically exploit the decision-maker's ignorance. However, the minority of Choice Architects that does not provide information to the decision-maker is vastly more likely to intervene. This work highlights the nuanced relationship between autonomy, paternalism and knowledge on the part of decision-makers and policymakers.

Paternalism and Deliberation: An Experiment on Making Formal Rules

Data collection completed · Preregistration · Working paper coming soon! · Replication package

▸ Abstract

This paper studies the relationship between soft and hard paternalism by examining two kinds of restriction: a waiting period and a hard limit (cap) on risk-seeking behavior. Mandatory waiting periods have been instituted for medical procedures, gun purchases and other consequential decisions. Are these policies substitutes for hard restrictions, and are delayed decisions more respected? We address these questions using a general population survey experiment in which Choice Architects make rules for decision-makers. Decision-makers are informed about an impending high-stakes decision. We vary when the decision is made: on the spot or after one day, and whether the initial decision can be revised. Given a decision's intertemporal structure, Choice Architects can decide on a cap to the decision-maker's risk taking. In another treatment, Choice Architects can implement the mandatory waiting period in addition to the cap. This allows us to study the substitutional relationship between waiting periods and paternalistic action and respect for more contemplated high-stakes decisions. We find that exogenous deliberation has no effect on the cap, endogenously prescribed waiting periods represent add-on restrictions that do not substitute for the cap and Choice Architects believe that, with time, the average decision-maker will take less risk and---because of the distribution of Choice Architects' bliss points---come closer to Choice Architects' subjectively preferred option. These results highlight the complementarity of policy tools in targeting various groups of decision-makers.

Paternalism in Data Sharing

with Ockenfels, A.

Integrating Machine Behavior into Human Subject Experiments

with Engel, C. & Ockenfels, A. · revise & resubmit

Working paper · GitHub

▸ Abstract

Large Language Models (LLMs) have the potential to profoundly transform and enrich experimental economic research. We propose a new software framework, "alter_ego", which makes it easy to design experiments between LLMs and to integrate LLMs into oTree-based web experiments with human subjects. Our toolkit is freely available at github.com/mrpg/ego. To illustrate, we run simple differently framed prisoner's dilemmas with interacting machines as well as with human-machine interaction.

Making Rules

Working paper coming soon!

The Role of Knowledge in Public Support: The Case of the German Heating Law

with Dertwinkel-Kalt, M.

▸ Abstract

When policies are unpopular, it is often claimed that this is due to poor communication and a lack of the transmission of facts in the public debates of these policies. We investigate this claim at the hand of a recent controversial policy in Germany in Germany, the so-called Heating Law. We conduct a survey experiment in which we experimentally vary participants' factual knowledge of the Law. We find that knowledge plays no role for participants' attitudes and reaction to the Law. Instead, a pre-existing pro-environmental policy preference and socio-demographic factors are significantly predictive of attitudes and behaviors. These results suggest public support for climate policy is more strongly anchored in ideological beliefs and values than in understanding of policy details. We also find evidence for motivated reasoning and false consensus bias. Our findings have implications for public administration and research on misinformation: communicating facts may be insufficient to resolve policy disagreements.

uproot

with Gerhardt, H.

Project website

Incentivizing Lab Signups: Evidence from a Field-in-the-Lab Experiment

with Apffelstaedt, A.

Reproducibility in Management Science

by Fišar, M., Greiner, B., Huber, C., Katok, E., Ozkes, A. and the Management Science Reproducibility Collaboration (consortium co-authorship). Management Science, 70(3):1343-1356. Published version

Stochastic volatility with mixed frequency data

Master’s thesis, University of Cologne. September 16, 2019.

▸ Abstract

This thesis focuses on two extensions to the stochastic volatility (SV) model: First, explanatory variables are introduced in the form of a low-frequency mixed-data sampling (MIDAS) term along with the daily autoregressive component of the SV model. Second, we consider a model in which an additional autoregressive term is introduced, but it evolves in a low-frequency manner compared to the daily term. Additional macro variables permit the identification of this supplementary term. Chapter 1 introduces the basic models and provides an overview of previous approaches. Chapter 2 presents the new models and discusses some of their properties. All SV models are estimated using the Kálmán filter; moreover, it is shown how volatility forecasts can be obtained. In chapter 3, we study the models using Monte Carlo simulations. In chapter 4, we apply the models to financial series. Finally, we summarize the results in chapter 5. Proofs, additional figures and tables, and the code of the reference implementation are provided.

Technological Transition and Price Discrimination

Bachelor’s thesis, University of Cologne. June 6, 2017. Download

Sophomore’s Dream: 1,000,000 digits

Computation (world record). 2017. Download (sig)

▸ Abstract

See here for further information. The previous world record computation (from 2013, also by me) can be downloaded here.

Max R. P. Grossmann

Research

Research areas

Publications in peer-reviewed journals

Selected work-in-progress

Other publications