An important feature of bond markets is the relationship between the initial public offering (IPO) price and the probability that the issuer defaults. On the one hand, the default probability affects the IPO price; on the other hand, the IPO price affects the default probability. It is a priori unclear whether agents can competitively price such assets. Our paper is the first to explore this question. To do so, we use laboratory experiments. We develop two flexible bond market models that are easily implemented in the laboratory. We find that subjects learn to price the bonds well after only a few repetitions.

We study whether gender influences credit attribution for group work using observational data and two experiments. We use data from academic economists to test whether coauthorship matters differently for tenure for men and women. We find that, conditional on quality and other observables, men are tenured similarly regardless of whether they coauthor or solo author. Women, however, are less likely to receive tenure the more they coauthor. We then conduct two experiments that demonstrate that biases in credit attribution in settings without confounds exist. Taken together, our results are best explained by gender and stereotypes influencing credit attribution for group work.