THE SABE NEWSLETTER
THE SOCIETY FOR THE
ADVANCEMENT OF BEHAVIORAL ECONOMICS
Statement
of Purpose
SABE is an association of scholars who
are committed to rigorous economic analysis and are interested in learning how
other disciplines – for example, psychology, sociology, anthropology, history,
political science, and biology - further our understanding of economic
behavior. An important function of SABE is to serve as a forum for research
which may not find either comprehension or acceptance in conventional economics
societies. SABE also aims at facilitating communication between economists and
scholars trained in related disciplines.
Vol. 12,
No. 1
Spring 2004
Editor: Simon James
School of Business and
Economics, University of Exeter, Streatham Court, Exeter EX4 4PU
United Kingdom
Contributions for the next
issue are very welcome – email: S.R.James@ex.ac.uk
Shlomo Maital, President Elect 2
SABE/IAREP 2004 Conference 2
IAREP 2005 Conference in Prague 17
Behavioral Economics Handbook 18
The Journal of Socio-Economics 19
Hugh
Schwartz – latest book 19
Books
of Interest 19
SABE
Officers and Board 22
If you have a change of email or regular
mail address please e-mail Nancy Rekart at
nrekart@unl.edu or send her a note – to Nancy Rekart, Office Supervisor,
102 Filley Hall, University of Nebraska-Lincoln, NE 68583-0922, USA.
Society
for the Advancement of Behavioral Economics (SABE) /
International
Association for Research in Economic Psychology (IAREP)
Drexel University, Philadelphia, PA,
USA
July
15 - July 18, 2004
Theme: “Cross-Fertilization
Between Economics and Psychology”
The psychological
influence on economics can be found in the development of mainstream economics,
such as “self-interest” dictates decision-making (Adam Smith), utility based on
the human emotion of happiness (Jeremy Bentham), “animal spirit” driving
volatile investment behavior (John Maynard Keynes), “rational expectations”
rendering public policy ineffective (Robert Lucas), to name just a few.
Although the position of the rational choice model in contemporary economics
has seemed to be unshakable, a challenge to that model has been emerging. In
1978 the importance of behavioral economics was first recognized officially by
the granting of the Nobel Prize to Herbert Simon for conceptualizing bounded
rationality and has garnered more attention recently. Thus it is not surprising
that the 2001 John Bates Clark Medal was awarded to Matthew Rabin, a behavioral
economist. It is encouraging that Daniel Kahneman, a psychologist who
introduced the concepts of preference reversal and framing, along with Vernon
Smith, a pioneering experimental economist, obtained the Nobel Prize in 2002
for their accomplishments in enhancing behavioral economics. It is time for
scholars in the social sciences who are interested in the development of
economic psychology, behavioral economics, experimental economics and game
theory to get together to foster cross-fertilization between economics and
psychology in order to enrich the broader field of social science. The European
and North American associations most concerned with these developments welcome
colleagues from the rest of the world to convene in Philadelphia in 2004 in
order to explore further the continuing collaboration of research that draws on
both economic and psychological perspectives.
Conference Website:
http://www.lebow.drexel.edu/sabe-iarep
Highlights of the Conference:
Conference
Hotel Arrangements:
Conference participants are expected to make their own
arrangements and pay for hotels at the following hotels. Please identify
yourself as members of SABE or IAREP for a discount rate:
1.
Hilton Inn at Penn, 3600 Samson Street, Philadelphia, PA, 19104 (located near
the conference site). Toll free reservation number: 1-800-Hiltons (or local
number: 215-222-0200). Fax: 215-222-4600. Basic room rate: $115.00 per
night plus 14% taxes. Check-in time: after 3pm. Checkout time: by noon.
2. Sheraton University, 36th and Chestnut Street,
Philadelphia, PA, 19104 (located near the conference site). Toll free
reservation number: 877-459-1146 (or regular number: 215-387-8000). Fax:
215-387-7920. Basic room rate: $99.00 per night plus 14% taxes. Check-in time:
after 3pm. Checkout time: before noon.
3. Penn Tower Hotel, Civic Center Boulevard at 34th Street,
Philadelphia, PA 19104-4385 (located near the
conference site). Reservation number: 215-387-8333. Fax: 215.386.8306.
Basic room rate: $125.00 per night plus 14% taxes. Check-in time: after 3pm.
Checkout time: by noon.
4.
Holiday Inn Express Midtown, 1305 Walnut Street, Philadelphia, PA, 19107
(located in the downtown area, 13 blocks from the conference site). Reservation
number: 215-735-9300, Fax: 215-732-2593. Email: midtown@himidtown.com. Basic room rate:
$92.00 per night plus 14% taxes. Check-in time: after 3pm. Checkout time: 1pm.
Taxis and subway can provide transportation to and from the conference site.
5.
Student housing at Drexel University is available at the following rate:
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Traditional Dorm |
Suite Style |
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Double Room |
$28 |
$35 |
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Single Room |
$34 |
$41 |
Thursday,2:00-3:30pm
SABE Board Meeting
Thursday,
3:30-5:00pm
IAREP Board Meeting
Thursday,
3:00-5:00pm
Registration (Pearlstein Center, Drexel
University)
3.
The Use of the Words Intuition, and Intuitive (and Some Synonyms) in Economic
Literature, by
Roger Frantz
2. Credible
signaling as a mechanism for maintaining cooperation: Evidence from real-time
trust dilemmas, by Ryan O. Murphy, Amnon Rapoport, and J. Neil
Bearden
2.
The generalized secretary problem: An experimental study, by J. Neil
Bearden Amnon Rapoport, and Ryan O. Murphy
1.
The Euro: Perception of a Loss in
Purchasing Power, by Bernadette Kamleitner, Erich Kirchler, and
Eva Hofmann
4.
Time Frame, Value Orientation, Study Orientation and Attitudes Toward Different
Aspects of Joining to European Union, by Renata
Kranjcec and Marko Polic
1.
Cross-Fertilization Between Economics,
Psychology and Institutional Design or Institutional Ergonomics for
CPR-problems, by Dr. Martin
Beckenkamp
3. Inflexible hours: A
behavioral economic foundation for oversupplied hours of labor, by Morris Altman and Lonnie Golden
3.
Heterogeneous agents in public goods experiments, by Roberto M. Burlando
and Francesco Guala
2. Departing from versus
returning to the status quo: Income framing, spending, and saving, by Nicholas
Epley, Lorraine Chen Idson, and Dennis Mak
IAREP
CONFERENCE IN PRAGUE 2005
'ABSURDITY
IN THE ECONOMY'
The Jubilee IAREP Congress, the 30th,
will be held in Praha, Czechia, on the site of the oldest University in Central
Europe: Charles University (founded in 1348). The organiser will be Karel
Riegel, with the Institute of Psychology Charles U. and Cappa (Czech
association of work and organizational Psychology)
The main theme will cover all aspects of
rationality and absurdity: from pure rational thinking, through bounded
rationality, to the non-rational - or irrational - so well described by the
writer Franz Kafka, who was a citizen of Prague and clerk of an assurance
agency. The transition of
economies was not like a walk through a
rosarium (as in beautiful Bath for example), but rather more like a laboratory
of economic thought. Independent variables were not only the euphoria that came
from new freedoms, but also naivity and inexperience on the one hand and legal
and
moral deficits on the other. The
resulting profound changes brought not only the standard, functioning market
economy, but also emotions, depressions, disenchantment and, even a sense of
absurdity. Underestimation, in the same way as overestimation of market
possibilities,
leads as a rule to a whole family of
economic consequences like bankruptcy, corruption,, unemployment, and its
psychological co-(Johny)walkers: distrust (of currency, or stocks and shares
for example), dissocialization (not only children, but adults too), an increase
in the proportion of risky and hazardous behaviors (such as gambling etc). So
there is a wide range of
general and specific research problems to
be approached from theoretical, methodological and applied perspectives, and
members of IAREP are invited to address these. Another aim of the Congress is
to contribute to ways of solving the problems emerging in practice. For that
reason, some of the thematic sessions will be focused on specific topics. There
will be an 'Internet Conference' on the web as a special forum for those who
will not be able to
join the meeting in person.
As the Prague meeting represents IAREP's
30th year, the Congress presents an opportunity both to recapitulate and
evaluate all that has already been achieved in the field of economic
psychology, as well as outlining perspectives for future development. Depending on the demand, the organiser will
prepare some pre-Congress workshops, a programme for accompanying persons,
social events (such as a visit to Karlovy Vary, a boat cruise on Vltava River,
a guided tour of ancient Prague, a University promotion ceremony and so on) as
well as some post-Congress tours.
The conference will be in September 2005.
We look forward to welcoming you all in Prague in 2005! For details of other
events, go to the IAREP web site at
http://www.ex.ac.uk/IAREP/
Behavioral
Economics Handbook
Foundations and Extensions of Behavioral
Economics: A Handbook, edited by Morris
Altman and to be published my M.E. Sharp is making good progress. Morris is
waiting for a few more manuscripts and is beginning the integration progress.
The contributors and contributions are:
Altman, Morris Introduction; X-efficiency and Efficiency Wage Theories
Antonides, Gerritt & Fergus Bolger Classroom Experiments in Behavioral
Economics
Augier, Mie Evolution
of Behavioral Economics: Contrasting Methods
Bergmann, Barbara Behavioral Approaches to Labor Market and Family Policy
Day, Richard Adaptive Economizing and Economic Behavior
Eckel, Catherine Heterogeniety and the Econonmic Agent
Field, Alexander Evolutionary Theory and Political/Economic Behavior
Folbre, Nancy Economics of the Family and Behavioral Ecology of
Gender
Frantz, Roger Intuition
George, David Preferences Formation and Metapreferences
Golden, Lonnie Labor
Guth, Werner, et al A Behavioral Approach to Distribution and
Bargaining
Hosseini, Hamid Neoclassical Theory and Behavioral Economics at Carnegie
James, Simon Taxation and the Contribution of Behavioral Economics
Kaufman, Bruce Emotions and Economic Theory
Kirchler, Erich & Eva Hofman Economic Decisions in the Household
Lea, Stephen How To Do As Well as You Can: The Psychology of
Economic Behaviour and
Behavioural Ecology
Lewis, Alan, John Cullis and Philip
Jones Ethical
Investment Preferences
Lunt, Peter Economic Psychology and Economic Theory
Lynn, Michael Tipping and Economics
Lynne, Gary Toward a Metaeconomics of the Multiple Self
MacFadyen, Alan James Belief Systems in Neo-Classical and
Behavioral Economics
Maital, Shlomo Reclaiming Moral Sentiments: Behavioral Economics and
the Ethical
Foundations of Capitalism
Perlman, Mark Authority Systems Underlying Alternative Economic Modeling
Pingle, Mark Deliberation Cost:
A Foundation for Behavioral Economics
Schwartz, Hugh Microeconomic Analyses of Real Life Decision Making
Sontheimer, Kevin Behavioral and Neoclassical Economics
Todd, Peter M. Heuristics
Tomer, John Organizational Capital and Personal Capital: the
Role of Intangible Capital
Formation in the Economy
Ulen, Thomas Behavioral law
Webley, Paul & Ellen K. Nyhus Discounting, Self-control and Saving
Yang, Bijou Lester Economics of Suicide
Yaniv, Gideon Rational Health-Compromising Behaviors and Economic
Interventions
Zaleskiewicz, Tomasz Behavioral finance
Journal of Socio-Economics
The mission of the Journal of
Socio-Economics is to promote interdisciplinary dialogue about economic
processes, institutions and policies. The core disciplines of interest to the
journal are those belonging to the social sciences. But other sciences and the
humanities are relevant and welcome. Biology, history and philosophy are of
particular interest. The journal is interested in pure theory, empirical
studies, policy analyses and literature reviews. The JSE is a widely distributed, peer
reviewed journal with a long historical association with SABE. For further
information see:
http://www.elsevier.com/homepage/sae/econworld/econbase/soceco/frame.htm
Hugh
has published his latest book Urban Renewal, Municipal Revitalization: The
Case of Curitiba, Brazil, ISBN 0-914927-43-4. This is the first major
account in English of one of the most successful urban renewals of the
Twentieth Century. It is likely to be of interest to Latin Americanists, urban
planners, transport and behavioral economists. Further information is available
from Hugh - hughschwar@aol.com.
Books
of Interest
Paul J. Albanese, The Personality Continuum
and Consumer Behavior,Westport, CT:
Greenwood Publishing Group, 2002.
Morris Altman, Human Agency and Material Welfare: Revisions in Microeconomics and
their
Implications for Public Policy,
Boston, Dordtrecht, London: Kluwer Academic Publishers,
1996.
Morris Altman, Worker Satisfaction and Economic
Performance: Microfoundations of Success
and Failure.
Armonk, NY: M.E. Sharpe, 2001.
Gerrit Antonides, Psychology in Economics and Business, Dordrecht: Kluwer, 1991.
J.L. Baxter, Behavioral Foundations of Economics, Marmillan Press/St Martin’s
Press, 1993.
Kenneth Button, ed., The Collected Essays of Harvey Liebenstein, 2 Vols. New York
University
Press, 1989.
Samuel Cameron, The Economics of Sin:
Rational Choice or No Choice At All? Northampton,
MA: Elgar, 2002.
Young Back Choi, Paradigms and Conventions: Uncertainty, Decision Making and
Entrepreneurship,
Ann Arbor: University of Michigan Press, 1993.
Richard Cyert and James G. March, A Behavioral Theory of the Firm, 2nd
ed. Cambridge, Mass:
Blackwell Business, 1992.
Peter E. Earl, Behavioral Economics, Edward Elgar Publishing, 1998.
Nancy Folbre, Economics and Family
Values, New York: The New Press, 2001.
Roger
S. Frantz, X-Efficiency: Theory, Evidence
and Applications, Boston: Kluwer, 1988.
Roger
S. Frantz, Hardinger Singh and James Gerber, eds, Behavioral Decision Making:
Handbook of Behavioral Economics, Greenwich: JAI Press, 1991.
Bruno
S. Frey, Economics as a Science of Human
Behavior: Towards a New Social Science
Paradigm,
Boston, Dordrecht and London: Kluwer, 1992.
Daniel
Friedman and Shyam Saunders, Experimental
Economics: A Primer for Economists, New
York: Cambridge University Press, 1994.
Gerd
Gigerenzer and Reinhard Selten (eds.) Bounded Rationality: The Adaptive
Toolbox,
Cambridge, MA: The MIT Press, 2002.
David
George, Preference Pollution: How Markets Create the Desires We Dislike,
Ann Arbor:
University of Michigan Press, 2001.
Benjamin
Gilad and Stanley Kaish, eds., Handbook
of Behavioral Economics, 2 vols. Greenwich:
JAI Press, 1986.
Shoshana
Grossbard-Shechtman, On the Economics of
Marriage: A Theory of Marriage, Labor,
and Divorce. Boulder, Calorado: Westview Press, 1992.
Charles
Hampden-Turner and Alphons Trumpenaars, Seven
Ways of Wealth Creation. New
York: Doubleday, 1993.
Daniel
Kahneman, Paul Slovic and Amos Tversy, eds, Judgement
Under Uncertainty:Heuristics
and Biases,
Cambridge; Cambridge University Press, 1982.
Simon
James, ed., Taxation: Critical Perspectives on the World Economy. Four volumes,
London and New York, Routledge, 2002.
Simon
James and Christopher Nobes, The
Economics of Taxation, Principles, Policy and
Practice,
7th ed., revised, Prentice Hall, 2003.
Bill
Jordon, Simon James, Helen Kay and Marcus Redley, Trapped in Poverty: Labour Market
Decisions in Low Income Households. London: Routledge, 1992.
Bill
Jordan, Marcus Redley and Simon James, Putting
the Family First: Selves, Decisions
and
Citizenship,
University College London Press, 1994.
Robert
Kuttner, The Economic Illusion: False
Choices Between Prosperity and Social Justice.
Philadelphia: University of Pennsylvania
Press, 1987.
Stephen
E.G. Lea, Paul Webley and Brian M. Young, eds., New Directions in Economic
Psychology: Theory, Experiment and Application. United Kingdom: Edward Elgar Publishing,1992.
Tony
Lawson, Economics and Reality, London
and New York, Routledge, 1997.
Harvey Leibenstein, Inside the Firm: The Inefficiencies of Hierarchy. Cambridge, Mass:
Harvard University Press, 1987.
David Lester & Bijou Yang, The Economy and Suicide: Economic
Perspectives on Suicide,
Commack, NY: Nova Science Publishers, 1997.
David Lester & Bijou Yang, Suicide
and Homicide in the 20th Century: Changes Over Time,
Commack, NY: Nova Science Publishers, 1998.
Alan
Lewis, Paul Webley and Adrian Furnham, The
New Economic Mind: The Social
Psychology of Economic Behaviour.
New York and London: Prentice Hall, 1995.
George
Lowenstein and Jon Elster, eds, Choice
over Time, New York: Russell Sage Foundation,
1992.
Shlomo
Maital and Sharon Maital, eds., Economics
and Psychology. United Kingdom:
Edward
Elgar Publishing, 1993.
Shlomo
Maital, Executive Economics: Ten
Essential Tools for Managers. New York: The Free
Press, 1994.
Roger
McCain, A Framework for Cognitive
Economics, New York: Praeger, 1992.
Marvin
E. Rozen, The Economics of Organizational Choice: Workers, Jobs, Labor Markets,
and
Implicit Contracting. Ann Arbor: University of Michigan Press,
1991.
Hersh
Shefrin, Beyond Greed and Fear;
Understanding Behavioral Finance and the Psychology
of Investing,
Boston: Harvard Business School Press, 2000.
Robert
J. Shiller, Irrational Exuberance. With
a New Preface by the Author, Princeton University
Press, 2001.
Andrei
Schleifer, Inefficient Markets: An
Introduction to Behavioral Finance, Oxford University
Press, 2000.
Hugh
Schwartz, Rationality Gone Awry? Decision
Making Inconsistent with Economic and
Financial Theory,
Praeger, 2000.
Herbert
A. Simon, Administrative Behavior: A Study of Decision-Making Processes in
Administrative Organizations, The Free Press, 1997.
Richard
H. Thaler, The Winner's Curse: Paradoxes
and Anomolies of Economic Life. New York:
The Free Press, 1992.
Richard
H. Thaler, ed., Advances in Behavioral
Finance, New York: Russell Sage Foundation,
1993.
John
F. Tomer, Organizational Capital: The
Path to Higher Productivity and Well-Being. New
York, Praeger, 1987.
John
F. Tomer The Human Firm: A Socio-Economic
Analysis of Its Behavior and Potential in a
New Economic Age,
New York: Routledge, 1999.
Karl-Erik
Warneryd, The Psychology of Saving: A
Study on Economic Psychology, Edward
Elgar, 1999.
Karl–Erik
Warneryd, Stock Market Psychology: How
People Value and Trade Stocks, Edward
Elgar, 2001.
Klaus
Weiermair and Mark Perlman, eds., Studies
in Economic Rationality: X-Efficiency
Examined and Extolled. Ann Arbor:
University of Michigan Press, 1990.
SABE
Officers and Board
Morris Altman, University of
Saskatchewan, Canada, President.
Shlomo Maital, President Elect.
Gary Lynne, University of Nebraska, Secretary.
Bijou Yang-Lester, Drexel University,
Treasurer
Simon James, University of Exeter, UK,
Editor, SABE Newsletter.
Gerrit Antonides, Wageningen University,
The Netherlands.
Roger Frantz, San Diego State University.
Flora Gill, University of Sydney, Australia
Shoshana Grossbard-Shechtman, San Diego
State University
Ewa Gucwa-Lesny, University of Warsaw,
Poland.
Louis Levy-Garboua, University of Paris I
(Pantheon-Sorbonne), France.
Peter Lunt, University College, London.
Charlotte Phelps, Temple University.
Mark Pingle, University of Nevada, Reno.
Douglas Rebne, New York University.
Kevin Sontheimer, University of
Pittsburgh
John Tomer, Manhattan College.