Final answer:
In experiment 3, Mayer and Massa investigated the effects of environmental uncertainty on corporate investment decisions.
Step-by-step explanation:
In their third experiment, Mayer and Massa aimed to explore how environmental uncertainty influences corporate investment decisions. They conducted a study where they manipulated the level of uncertainty faced by participants through providing varying sets of information regarding future market conditions. Participants were then tasked with making investment decisions for a hypothetical firm. By analyzing these decisions across different uncertainty levels, the researchers aimed to discern patterns in investment behavior.
Their findings suggested that higher uncertainty led to more conservative investment choices, as participants tended to opt for less risky investment strategies when facing greater ambiguity about the future market conditions. This experiment shed light on the crucial role that environmental uncertainty plays in shaping corporate investment behavior, emphasizing the cautious approach adopted by firms in uncertain business landscapes.
So, in experiment 3, Mayer and Massa examined the impact of environmental uncertainty on corporate investment decisions.