I am an assistant professor of finance at the Vrije Universiteit Amsterdam. In my research I combine laboratory experiments, field experiments, and naturally occurring data to better understand human decision making, primarily in the areas of risk and uncertainty and strategic interaction.
My work has appeared in leading economic and interdisciplinary journals such as the Review of Economics and Statistics, Management Science, Nature Human Behaviour, and the American Economic Review. It has, amongst others, been covered by the Wall Street Journal, Newsweek, the Financial Times, the Independent, the Times, and the Daily Mail.
I am a research fellow at Tinbergen Institute and an external fellow at the Centre for Decision Research and Experimental Economics (CeDEx) at the University of Nottingham.
PhD in economics, 2014
Erasmus University Rotterdam
MSc in behavioural economics, 2009
University of Nottingham
MSc in sociology and social research, 2008
BSc in sociology, 2006
Cathleen A. Johnson, Aurélien Baillon, Han Bleichrodt, Zhihua Li, Dennie van Dolder, Peter P. Wakker
This paper introduces the Prince incentive system for measuring preferences. Prince clarifies consequences of decisions and incentive compatibility of experimental choice questions to subjects. It combines the efficiency and precision of matching with the improved clarity and validity of choice questions. It helps distinguish between (a) genuine deviations from classical economic theories (such as the endowment effect) and (b) preference anomalies due to fallible measurements (such as preference reversals). Prince avoids the opaqueness in Becker-DeGroot Marschak and strategic behavior in adaptive experiments. It helps reducing violations of isolation in the random incentive system. Using Prince we shed new light on willingness to accept and the major components of decision making under uncertainty: utilities, subjective beliefs, and ambiguity attitudes.
Uyanga Turmunkh, Martijn J. van den Assem, Dennie van Dolder
We investigate the credibility of non-binding pre-play statements about cooperative behavior, using data from a high-stakes TV game show in which contestants play a variant on the classic Prisoner’s Dilemma. We depart from the conventional binary approach of classifying statements as promises or not, and propose a more fine-grained two-by-two typology inspired by the idea that lying aversion leads defectors to prefer statements that are malleable to ex-post interpretation as truths. Our empirical analysis shows that statements that carry an element of conditionality or implicitness are associated with a lower likelihood of cooperation, and confirms that malleability is a good criterion for judging the predictive power of cheap talk.
Marc B.J. Schauten, Martijn J. van den Assem, Dennie van Dolder, Remco C.J. Zwinkels
This paper documents a strong violation of the law of one price surrounding a large-size rights issue. If prices are right, the relation between the prices of shares and rights follows the outcome of a simple calculation. In the case of Royal Imtech N.V. prices deviated sharply from the theoretical prediction. Throughout the term of the rights, investors were buying shares at prices that were up to nine times what they should have been given the price of the rights. The most likely explanation for the sizeable and persistent mispricing is the limited availability of shares for short selling.
At the VU Amsterdam I teach Behavioral Finance and Real Estate (3rd year undergraduate). This course provides a behavioral perspective on real estate decision making and markets. Students learn how behavioral biases affect the decisions of participants in real estate markets, and how the bounded rationality of market participants can explain real estate market dynamics. In my part of the course, I provide students with a psychological perspective on negotiations, property valuations, and mortgage choices.
In addition, I provide tutorials in Finance (2nd year undergraduate). In this course we build the foundation for the study of corporate finance and investments. The focus is on financial decision-making in theory and practice. Our coverage of core finance topics includes: i) capital budgeting, ii) asset pricing, and iii) financial investment.
Finally, I supervise MSc theses on topics related to behavioral finance. Interested students can contact me by email.
Previously, I taught tutorials in behavioural economics and supervised BSc and MSc theses on topics related to behavioral economics and behavioral finance at Erasmus University Rotterdam.