Gehrig, Thomas P.Levínský, René2018-09-182018-09-182018-04http://hdl.handle.net/10230/35459The present study contributes to the ongoing debate on possible costs and benefis of leverage requirements. In particular, we run two series of electronic call auctions with heterogeneous agents in the laboratory where we change the leverage bounds as a treatment variable. Over the two treatments, participants in our experiment realise about forty percent of the possible gains from trade. We show, in accordance the theory, leverage bounds do affect the efficiency of the market and the price of the asset.application/pdfengThis is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.Leverage boundsAsset pricingBehavioural financeinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess