Chen, Paul; Richardson, Martin
Vertical integration in providing financial products and advice is not uncom-mon. We conduct an experiment in which a financial advisor recommendsto a client one of two potential assets to purchase and an asset purchase price.In one setting, the players’ incentives are aligned. In another, a conflict ofinterest exists with the advisor’s remuneration favouring one particular asset.We find that conflict influences the advisor’s asset recommendation awayfrom the asset that would better serve the...[Show more]
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.