Report 2017–2020

MAX PLANCK INSTITUTE FOR RESEARCH ON COLLECTIVE GOODS

Report 2017–2020

1 Please note: For technical reasons concerning the print layout, some pages in this document have been left empty.

Imprint

Max Planck Institute for Research on Collective Goods MAX PLANCK INSTITUTE Kurt-Schumacher-Str. 10 FOR RESEARCH ON COLLECTIVE GOODS 53113 Bonn

Layout & Typesetting: Marc Martin Editor: Brian Cooper Photos: © Christoph Engel, MPI: Cover photos and pp. 5, 17, 19, 69, 75 © Jessica Loevenich, MPI: pp. 7, 337 © Stefania Bortolotti, MPI: p. 37 © Clemens Schuessler, Adobe Stock: p. 53 © Susann Fiedler, MPI: p. 59 © Thomas Hartmann: p. 63 © MPI: pp. 311, 345

2 Table of Contents

Table of Contents

A. A Short History of the Institution 5 B. Publications in Target Journals 7 C. Research Program 17 C.I Behavioral Law and Economics 19 C.II Experimental Economics 37 C.III Research Group „Moral Courage“ 53 C.IV Research Group “Economic Cognition” 59 C.V Research Group “Mechanisms of Normative Change” 63 C.VI International Max Planck Research Schools 69

D. Research Portraits 75

E. Conferences & Workshops 287 F. Research Seminars 289 F.I External Speakers in our Research Seminars 290 F.II Internal Speakers in our Research Seminars 298 G. Visiting Scholars 305 H. Institutional Research Cooperations 307

3 4 A. A Short History of the Institution

5 A. A Short History of the Institution

A. A Short History of the Institution

The Max Planck Institute for Research on Collective Goods Martin Hellwig and his group have mainly focused on the was founded in 1997 as a temporary project group “Common mechanism design foundations of the theory of collective Goods: Law, Politics and Economics” and transformed into a goods, and on the analysis and mitigation of the financial permanent institute in 2003. Its mission is to study the law, crisis. economics, and politics of collective goods, defined to encompass all those goods whose provision and enjoyment are treat- Today, the major research efforts of the institute are con- ed as community concerns. cerned with

In the early years, the institute had teams of lawyers and  the analysis of incentive problems in public-good provi- political scientists, led by Christoph Engel (who leads the sion, Behavioral Law and Economics Group) and Adrienne Héritier. When Adrienne Héritier left in 2003 to accept a joint chair at  behavioral law and economics, the European University Institute and the Schuman Centre in Florence, the Max Planck Society appointed economist Martin  the analysis of credence goods markets and how to de- Hellwig to replace her. After Martin Hellwig’s retirement in sign better institutions, 2017, Matthias Sutter, an experimental economist, succeeded him as new co-director and established the Experimental Eco-  the experimental investigation of the development of economics Group. At this point, therefore, the institute consists nomic preferences in childhood and adolescence. mainly of lawyers and applied economists. The different lines of research show that the institute aims at In addition, there is a small group of psychologists. Initial- striking a balance between fundamental research and applied ly brought in by Christoph Engel to support his behavioral work with practical implications for society. Research objec- law-and-economics approach to institutional analysis, in 2007 tives and strategies are laid out in this report. this turned into the first independent Research Group Intuitive Experts, led by Andreas Glöckner and run until 2013. Today, the institute hosts three independent Research Groups, led by Anna Baumert (Moral Courage), Susann Fiedler (Economic Cognition), and Fabian Winter (Mechanisms of Normative Change).

From the beginning, the work of the institute had three main goals: It aimed to better understand collective-goods problems, to find better solutions, and to understand the political, legal and economic processes of defining problems and choosing solutions. In the years of the project group, major research efforts concerned

 the law and politics of waste management,

 the governance of the Internet, and

 the transformation of the nation state into a multi-level system of governance.

6 B. Publications in Target Journals

7 B. Publications in Target Journals

B. Publications in Target Journals

Publications in Target Journals European Journal of International Law – only until 2018 Goltdammer’s Archiv für Strafrecht – only until 2018 In 2009, following a recommendation by the Max Planck International Journal of Constitutional Law – only until 2018 Society, the institute has defined a list of top journals, separately for each of the disciplines represented in the institute. Journal of Competition Law and Economics – only until 2018 Consulting with the researchers, this list has been last revised Journal of Experimental Criminology – new since 2019 in January 2019 to reflect the current composition of the Journal of Quantitative Criminology – new since 2019 institute. If a paper is accepted for publication in the list the Law and Human Behavior researchers (with a TVöD contract) receive a bonus. Category 1 means full bonus, and category 2 half a bonus. To express Law and Society Review – new since 2019 clearly which journals are regarded as flagship journals all Modern Law Review – only until 2018 information is published in the institute’s wiki. Oxford Journal of Legal Studies – only until 2018

In this section, we list all publications between 2017 and 2020 Psychology, Public Policy and Law that have (or, in the case of directors and group heads, would ZGR Zeitschrift für Unternehmens- und Gesellschaftsrecht have) qualified for a bonus. For researchers who have left ZHR Zeitschrift für das gesamte Handelsrecht the institute, only publications are listed that go back to work undertaken at the institute. For researchers currently working at the institute, all publications that would have qualified for Economics a bonus are listed, even if they have been published before a researcher joined the institute. Category 1: The American Economic Review Journals that published articles by MPI scholars between the Econometrica years 2017 and 2020 are marked in bold in the following list. Journal of Political Economy Quarterly Journal of Economics Law The Review of Economic Studies Category 1: American Law and Economics Review Category 2: Criminology – new since 2019 American Economic Association: Papers & Proceedings – only until 2018 International Review of Law and Economics – only until 2018 American Economic Journal: Applied Economics Journal of Empirical Legal Studies American Economic Journal: Economic Policy The Journal of Law and Economics American Economic Journal: Microeconomics The Journal of Law, Economics and Organization The Economic Journal Journal of Legal Analysis European Economic Review The Journal of Legal Studies Games and Economic Behavior International Economic Review Category 2: Journal of Economic Theory Archiv für die civilistische Praxis The Journal of Finance Archiv des öffentlichen Rechts Journal of Human Resources Common Market Law Review – only until 2018 The Journal of Industrial Economics Der Staat Journal of Labor Economics Die Verwaltung

8 B. Publications in Target Journals

Journal of Money, Credit and Banking – only until 2018 Sociology – new category since 2019 Journal of Monetary Economics Category 1: Journal of Public Economics The American Journal of Sociology – new since 2019 Journal of the European Economic Association American Political Science Review – new since 2019 Management Science American Sociological Review – new since 2019 The Rand Journal of Economics Social Forces – new since 2019 Review of Economics and Statistics

Review of Economic Dynamics – only until 2018 Category 2: The Review of Financial Studies European Sociological Review – new since 2019 Social Science Research – new since 2019 Psychology Social Networks – new since 2019 Sociological Science – new since 2019 Category 1: The Journal of Politics – new since 2019 Behavioral and Brain Sciences – only until 2018 Current Directions in Psychological Science – only until 2018 Journal of Personality and Social Psychology Personality and Social Psychology Review Interdisciplinary Psychological Bulletin – only until 2018 Category 1: Psychological Review Nature Psychological Science Science

Category 2: Category 2: Cognition Nature Communications Cognition and Emotion – only until 2018 PNAS Cognitive Psychology – new since 2019 Emotion – new since 2019

European Journal of Personality – new since 2019 All publications of the years from 2017 to 2020 are listed on the follo- European Review of Social Psychology – new since 2019 wing pages (last update on 24th November 2020). Institute scholars are marked in bold. Journal of Behavioral Decision Making – only until 2018 Journal of Economic Psychology – only until 2018 Journal of Experimental Social Psychology Journal of Experimental Psychology (i.e., General, LMC, Applied) Journal of Personality – new since 2019 Journal of Risk and Uncertainty – only until 2018 Judgment and Decision Making Organizational Behavior and Human Decision Processes – only until 2018 Personality and Social Psychology Bulletin – new since 2019 Psychonomic Bulletin and Review – only until 2018 Social Psychological and Personality Science – new since 2019 Thinking and Reasoning – only until 2018

9 B. Publications in Target Journals

2020 and forthcoming (including also “Revise & resubmit”)

Author Journal Details Title Vol. 92 (2020), Exposition to xenophobic content and support Social Science Alvarez Benjumea, Amalia November, article for right-wing populism: The asymmetric role of Research 102480 gender Vol. 117 (2020), The breakdown of anti-racist norms: A natu- Alvarez Benjumea, Amalia; PNAS 37, September, ral experiment on hate speech after terrorist Winter, Fabian pp. 22800-22804 attacks Vol. 92 (2021), Misprediction of affective outcomes due to Anvari, F.; Olsen, Jerome; Journal of Experimental January, 104052, different evaluation modes: Replication and Wing, Y. H.; Feldman, G. Social Psychology available online 16 extension of two distinction bias experiments October 2020 by Hsee and Zhang (2004) Barron, K.; Harmgart, H.; Discrimination, narratives and family history: Review of Economics Huck, S.; Schneider, Sebas- Revise & resubmit An experiment with Jordanian host and Syrian and Statistics tian O.; Sutter, Matthias refugee children Baumert, Anna; Maltese, S.; Social Psychological Vol. 11 (2020), 7, A cross-cultural study of justice sensitivity and Reis, D. and Personality Science pp. 899-907 its consequences for cooperation A pragmatic and pluralistic personality Mõttus, R.; ... Baumert, Anna; European Journal of Forthcoming research: Different goals beget different et al. Personality methods Vol. 88 (2020), Baumert, Anna; Li, Mengyao; Journal of Experimental Standing up against moral violations: Psycho- May, article Sasse, Julia; Skitka, L. Social Psychology logical processes of moral courage 103951 Bignoni, M; Bortolotti, Games and Economic Economic polarization and antisocial behavior: Revise & resubmit Stefania Behavior An experiment Boosey, L.; Brookins, Philip; Vol. 66(11), Information disclosure in contests with endoge- Management Science Ryvkin, D. pp. 5128-5150 nous entry: An experiment Vol. 124 (2020), Games and Economic The timing of discretionary bonuses: Effort, Boosey, L.; Goerg, Sebastian November, Behavior signals, reciprocity pp. 254-280 Cerrone, Claudia; Herm Games and Economic Debarment and collusion in procurement Revise & resubmit strüwer, Yoan; Robalo, Pedro Behavior auctions: An experiment Cerrone, Claudia; Feri, F.; American Economic Revise & resubmit Ignorance is bliss: A game of regret Neary, P. Review Sozioökonomische Ungleichheit: Verfassungs- Chatziathanasiou, Konstantin Der Staat Forthcoming theoretische Bedeutung, verfassungsrechtliche Reaktionen Chowdhury, S.; Sutter, Journal of Political Economic preferences across generations and Revise & resubmit Matthias; Zimmermann, K. Economy family clusters: A large-scale experiment Christensen, D.; Dube, O.; Building resilient health systems: Experimental Quarterly Journal of Haushofer, Johannes; Siddiqi, Forthcoming evidence from Sierra Leone and the 2014 Ebola Economics B.; Voors, M. outbreak First published Dang, J.; Barker, P.; Baumert, Social Psychological A multilab replication of the ego depletion online April 3, Anna; et al. and Personality Science effect 2020 Vol. 130 (2020), Dertwinkel-Kalt, M.; Köster, European Economic To buy or not to buy? Price salience in an online November, article M.; Sutter, Matthias Review shopping field experiment 103593 Egger, D.; Haushofer, General equilibrium effects of unconditional Johannes; Miguel, E.; Econometrica Revise & resubmit cash transfers: Experimental evidence from Niehaus, P.; Walker, M. Kenya

10 B. Publications in Target Journals

Engel, Christoph; Timme, S.; Psychology, Public Vol. 26 (2020), 3, Coherence-based reasoning and order effects Glöckner, Andreas Policy and the Law pp. 333-352 in legal judgments Vol. 17, (2020) Engel, Christoph; Journal of Empirical Manna from heaven for judges: Judges’ reac- issue 4, pp. 641- Weinshall, K. Legal Studies tion to a quasi-random reduction in caseload 897 Vol. 90 (2020), Journal of Experimental September, article Editorial: Process tracing methods in social Evans, A. M.; Fiedler, Susann Social Psychology 104007, published psychology 6 June 2020 Fiedler, Susann; Hillenbrand, Games and Economic Vol. 121 (2020), Gain-loss framing in interdependent choice Adrian Behavior May, p. 232-252 Glätzle-Rützler, D.; Lerget Games and Economic Collective intertemporal decision and heteroge- Revise & resubmit porer, P.; Sutter, Matthias Behavior inty in groups Vol. 368 (2020), issue 6495, Haushofer, Johannes C.; Science pp. 1063-1065. Which interventions work best in a pandemic? Metcalfe, J. A. Online: 05 June 2020 Heinz, Matthias; Jeworrek, S.; Vol. 23 (2020), Measuring indirect effects of unfair employer Mertins, V.; Schumacher, H.; The Economic Journal November, behavior on worker productivity: A field experi- Sutter, Matthias pp. 2546-2568 ment Fairnessprinzipien der algorithmischen Verwal- Archiv des öffentlichen Hermstrüwer, Yoan forthcoming tung: Diskriminierungsprävention beim staatli- Rechts chen Einsatz von Machine Learning Holzmeister, F; Huber, H.; Published online What drives risk perception? A global survey Kirchler, M; Lindner, Florian; Management Science 16 April 2020 with financial professionals and laypeople Weitzel, U.; Zeisberger, S. Measuring the value of managerial decision in Kassis, M.; Schmidt, S.; Games and Economic Revise & resubmit dynamic team tournaments: Evidence from a Schreyer, D.; Sutter, Matthias Behavior natural field experiment Kiessling, Lukas; Radbruch, Management Science Revise & resubmit Self-selection of peers and performance J.; Schaube, S. Stepping into perpetrators’ shoes: How ingroup Li, Mengyao; Leidner, B.; Personality and Social Vol. 46 (2020), 3, transgressions and victimization shape support Fernandez-Campos, S. Psychology Bulletin pp 424-438 for retributive justice through perspective-taking with perpetrators Close or distant past? The role of temporal dis- Li, Mengyao; Leidner, B.; Personality and Social Published online tance in responses to intergroup violence from Petrovic, N.; Prelic, N. Psychology Bulletin August 1, 2020 victim and perpetrator perspectives Vol. 144 (2019), Empirische Verfassungsrechtswissenschaft: zu Petersen, Niels; Chatziatha- Archiv des öffentlichen 4, pp. 501-535, den Möglichkeiten und Grenzen quantitativer nasiou, Konstantin Rechts published 07 July Verfassungsvergleichung und Richterforschung 2020 The increasing dominance of networking in the Rauhut, H.; Winter, Fabian PNAS Revise & resubmit production of knowledge Romano, Angelo; Sutter, Nature Communica- Conditionally Matthias; Liu, J; Yamagishi, T.; National parochialism is ubiquitous around the tions accepted Balliet, D. Sasse, Julia; Halmburger, A.; The functions of anger in moral courage: Emotion Forthcoming Baumert, Anna Insights from a behavioral study Weitzel, U.; Huber,C.; Huber, Review of Financial Vol. 33 (2020), 6, J.; Kirchler, M.; Lindner, Bubbles and financial professionals Studies pp. 2659-2696 Florian; Rose, J. Winter, Fabian; [and others] PNAS Revise & resubmit Social mindfulness across the globe

11 B. Publications in Target Journals

2019

Author Journal Details Title Journal of Economic Vol. 180 (2019), Bade, Sophie Matching with single-peaked preferences Theory January, pp. 81-99 Vol 118, (2019), How uncertainty and ambiguity in tournaments Balafoutas, L.; Sutter, European Economic September, affect gender differences in competitive behav- Matthias; Review pp. 1-13 ior Vol. 129 (2019), Bigoni, M.; Bortolotti, Stefa- At the root of the North-South cooperation gap The Economic Journal 619, April, nia; Casari, M.; Gambetta, D. in Italy: Preferences or beliefs? pp. 1139-1152 Vol. 113 (2019), Boosey, L.; Brookins, Philip; Games and Economic January, pp. 756- Contests between groups of unknown size Ryvkin, D. Behavior 769 Vol. 16 (2019), When does transparency backfire? Putting Journal of Empirical Engel, Christoph December, 4, Jeremy Bentham’s theory of general prevention Legal Studies pp. 881-908 to the experimental test Fehr, D.; Heinemann, D.; Journal of Monetary Vol. 103 (2019), The power of sunspots: An experimental anal- Llorente-Saguer, Aniol Economics May, pp. 123-136 ysis Vol. 113 (2019), Games and Economic Fehr, D.; Sutter, Matthias January, pp. 448- Gossip and the efficiency of interactions Behavior 460 Vol. 74 (2019), Glaser, M.; Iliewa, Zwetelina; Thinking about prices versus thinking about Journal of Finance 6, December, Weber, M. returns in financial markets pp. 2997-3039 Vol. 65 (2019), Goerg, Sebastian; Kube, The effectiveness of incentive schemes in the Management Science 9, September, Sebastian; Radbruch, J. presence of implicit effort costs pp. 4063-4078 Vol. 16 (2019), Journal of Empirical The German Federal Courts dataset 1950-2019: Hamann, Hanjo 3, September, Legal Studies From paper archives to linked open data pp. 671-688. American Economic Himmler, Oliver; Jäckle, R.; Vol. 11 (2019), Soft commitments, reminders, and academic Journal: Applied Eco- Weinschenk, P. April, pp. 114-142 performance nomics Journal of Law, Eco- Vol. 35 (2019), 2, Inherited institutions: Cooperation in the light of Langenbach, Pascal nomics, and Organiza- pp. 364-393 democratic legitimacy tion Vol. 85 (2019), Understanding cognitive and affective mecha- Journal of Experimental Rahal, Rima M; Fiedler, Susan November, article nisms in social psychology through eye-track- Social Psychology 103842 ing Vol. 111 (2019), Economic behavior of children and adoles- Sutter, Matthias; Zoller, European Economic January, cents: A first survey of experimental economics Claudia; Glätzle-Rützler, D. Review pp. 98-121 results Vol. 35 (2019), 4, Prosocial behavior in interethnic encounters: Zhang, Nan; Winter, Fabian; European Sociological August, pp 582- Evidence from a field experiment with high- and Aidenberger, A.; Rauhut, H. Review 597 low-status immigrants

12 B. Publications in Target Journals

2018

Author Journal Details Title Admati, A.R.; DeMarzo, P.M.; Vol. 73 (2018), 1, Hellwig, Martin F.; Journal of Finance February, pp. 145- The leverage ratchet effect Pfleiderer, P. 198 Vol. 165 (2018), Albrecht, F.; Kube, Sebastian; Journal of Public Eco- Cooperation and norm enforcement: The indi- September, Traxler, Christian nomics vidual-level perspective pp. 1-16 Alvarez Benjumea, Amalia; European Sociological Vol. 34 (2018), 3, Normative change and culture of hate: An Winter, Fabian Review June, pp 223-237 experiment in online environments Angelovski, A.; Di Cagno, D.; Vol. 67 (2018), Journal of Economic Behavioral spillovers in local public good provi- Güth, Werner; Marazzi, F.; August, pp. 116- Psychology sion: An experimental study Panaccione, L. 134 Vol. 107 (2018), Games and Economic Bachi, Benjamin; Spiegler, R. January, pp. 298- Buridanic competition Behavior 315 Balafoutas, L.; Fornwagner, Nature Communica- Vol. 9 (2018), no. Closing the gender gap in competitiveness H.; Sutter, Matthias tions 4359, 6 pages through priming Vol. 61 (2018), 3, Journal of Law and Bar-Gill, O.; Engel, Christoph August, pp. 525- How to protect entitlements: An experiment Economics 553 Vol. 102 (2017), Bouton, L.; Llorente-Saguer, Games and Economic March, pp. 179- Unanimous rules in the laboratory Aniol; Malherbe, F. Behavior 198 Vol. 59 (2018), 3, Cooper, D. J.; Sutter, International Economic Endogenous role assignment and team perfor- August, pp. 1547- Matthias Review mance 1569 Eguia, J.X.; Llorente-Saguer, Games and Economic Vol. 109 (2018), Equilibrium selection in sequential games with Aniol; Morton, R.; Nicolo, A. Behavior May, pp. 465-483 imperfect information Engel, Christoph; Goerg, European Economic Vol. 105 (2018), If the worst comes to the worst: Dictator giving Sebastian Review June, pp. 51-70 when recipience of implicit effort costs Engel, Christoph; Klement, Journal of Empirical Vol. 15 (2018), 4, Diffusion of legal innovations: The case of A.; Weinshall, K. Legal Studies pp. 708-731 Israeli class actions Journal of Experi- Franzen, A.; Mader, S.; Vol. 17 (2018), Contagious yawning, empathy, and their rela- mental Psychology: Winter, Fabian 12, pp. 1950-158 tion to prosocial behavior General Vol. 29 (2018), Ghaffari, Minou; Fiedler, The power of attention: Using eye gaze to pre- Psychological Science 11, pp. 1878- Susann dict other-regarding and moral choices 1889 Archiv für die civilis- Vol. 218 (2018), Diskussionsbericht zum Referat von Katja Hamann, Hanjo tische Praxis 2-4, pp. 430-437 Langenbucher 70 Jahre Marginalien des deutschen Staats- Archiv des öffentlichen Vol. 143 (2018), Hamann, Hanjo rechts: Nachschau auf ein vergessenes Kapitel Rechts 2, pp. 282-311 der Nachkriegspublizistik Hillenbrand, Adrian; Winter, Games and Economic Vol. 109 (2018), Volunteering under population uncertainty Fabian Behavior May, pp. 65-81 How to identify strategy use and adaptive Journal of Behavioral Vol. 31 (2018), strategy selection: The crucial role of chance Jekel, M.; Glöckner, Andreas Decision Making pp. 265-279 correction in weighted compensatory strategies

13 B. Publications in Target Journals

Kirchler, M.; Lindner, Florian; Vol. 73 (2018), 5, Rankings and risk-taking in the finance indus- Journal of Finance Weitzel, U. pp. 2271-2302 try Some metatheoretical reflections on adaptive Marewski, J.N.; Bröder, A.; Journal of Behavioral Vol. 31 (2018), 2, decision making and the strategy selection Glöckner, Andreas Decision Making pp. 181-198 problem From spontaneous cooperation to sponta- Organizational Vol. 149 (2018), Mischkowski, D.; Glöckner, neous punishment: Distinguishing the under- Behavior and Human November, Andreas; Lewisch, P. lying motives driving spontaneous behavior in Decision Processes pp. 59-72 first and second order public good games Vol. 74 (2018), Think it through before making a choice: Mischkowski, D.; Thielmann, Journal of Experimen- January, Processing mode does not influence social I.; Glöckner, Andreas tal Social Psychology pp. 85-97 mindfulness Vol. 56 (2018), International Review of Emotions and tax compliance among small Olsen, Jerome December, Law and Economics business owners: An experimental survey pp. 42-52 The fire burns within: Individual motivations Vol. 41 (2018), for self-sacrifice. In response to: Dying for the Behavioral and Brain e214, published Rahal, Rima-Maria group: towards a general theory of extreme Sciences online 27 Decem- self-sacrifice (Behavioral and brain science, Vol. ber 2018 41 (2018), e192) Romano, Angelo; Balliet, D.; Vol. 115 (2018), Reply to de Dreu: Shared partner nationality PNAS Yamagishi, T.; Liu, J. H. 5, pp. E846-847 promotes ingroup favoritism in cooperation Sutter, Matthias; Angerer, S.; Language group differences in time preferenc- European Economic Vol. 106 (2018), Glätzle-Rützler, D.; Lerget es: Evidence from primary school children in a Review July, pp. 21-34 porer, P. bilingual city Vol. 157 (2018), Traxler, Christian; Wester- Journal of Public Eco- Bunching on the Autobahn? Speeding respons- January, maier, F.G.; Wohlschlegel, A. nomics es to a ‘notched’ penalty scheme pp. 78-94 March 13, Social norm enforcement in ethnically diverse Winter, Fabian; Zhang, Nan PNAS 2018. 115(11), communities pp. 2722-2727

2017

Author Journal Details Title Balafoutas, L.; Kerschbamer, Vol. 127 (2017), Second-degree moral hazard in a real-world The Economic Journal R.; Sutter, Matthias 599, pp. 1-18 credence goods market Bassarak, C.; Leib, M.; Journal of Behavioral Vol. 30 (2017), 4, What provides justification for cheating: Mischkowski, D.; Strang, S.; Decision Making pp. 964-975 Producing or observing counterfactuals? Glöckner, Andreas Bigoni, M.; Bortolotti, Journal of Empirical Vol. 14 (2017), 3, Unbundling efficient breach: An experiment Stefania; Parisi, F.; Porat, A. Legal Studies pp. 527-574 Vol. 105 (2017), Boosey, L. A.; Brookins, Games and Economic Contests with group size uncertainty: September, Philip; Ryvkin, D. Behavior Experimental evidence pp. 212-229 Bouton, L.; Llorente-Saguer, Vol. 126 (2018), Aniol; Malherbe, F.; Benoit, Journal of Political Get rid of unanimity rule: The superiority of February, pp. 107- J.-B.; Castanheira, M; Economy majority rules with veto power 149 Esponda, I. Buijze, R.; Engel, Christoph; Journal of Empirical Vol. 14 (2017), 4, Insuring your donation: An experiment Hemels, S. Legal Studies pp. 858-885

14 B. Publications in Target Journals

De Grauwe, P.; Ji, Y.; Stein- International Review of Vol. 51 (2017), The EU debt crisis: Testing and revisiting con- bach, Armin Law and Economics August, pp. 29-37 ventional legal doctrine Dorrough, Angela; Glöckner, Journal of Behavioral Vol. 30 (2017), 2, Race for power in public good games with Andreas Decision Making pp. 582-609 unequal, unstable punishment power Engel, Christoph; Zhurak- The Journal of Legal Vol. 46 (2017), 1, You are in charge: Experimentally testing the hovska, Lilia Studies pp. 1-50 motivating power of holding a judicial office The politics of citation at the ECJ: Policy Journal of Empirical Vol. 14 (2017), 4, preferences of EU member state governments Frankenreiter, Jens Legal Studies pp. 812-857 and the citation behavior of members of the European Court of Justice Vol. 100 (2017), Gangadharan, L.; Nikiforakis, European Economic Normative conflict and the limits of self-gover- November, Nikos Review nance in heterogeneous populations pp. 143-156 Gizatulina, Alia; Hellwig, Journal of Economic Vol. 170 (2017), The generic possibility of full surplus Martin F. Theory July, pp. 385-416 extraction in models with large type spaces Vol. 102 (2017), Gneezy, U.; Gravert, C.; Sac- Games and Economic A must lie situation: Avoiding giving negative March, pp. 445- cardo, S.; Tausch, Franziska Behavior feedback 454 Die empirische Herangehensweise im Zivil- Hamann, Hanjo; Hoeft, Archiv für die civilis- Vol. 217 (2017), recht: Lebensnähe und Methodenehrlichkeit Leonhard tische Praxis 3, pp. 311-336 für die juristische Analytik? Sharing is daring: An experiment on consent Hermstrüwer, Yoan; International Review of Vol. 51 (2017), options, chilling effects and a salient privacy Dickert, S. Law and Economics August, pp. 38-49 nudge Vol. 127 (2017), Market vs. residence principle: Experimental Huber, J.; Kirchler, M.; Klein- The Economic Journal Feature Issue, evidence on the effects of a financial transac- lercher, D.; Sutter, Matthias pp. F610-F631 tion tax Kerschbamer, R.; Sutter, Vol. 127 (2017), How social preferences shape incentives in The Economic Journal Matthias; Dulleck, U. 600, pp. 393-416 (experimental) markets for credence goods Llorente-Saguer, Aniol; European Economic Vol. 95 (2017), Collusion and information revelation in auc- Zultan, R. Review June, pp. 84-102 tions Archiv für die civilis- Vol. 217 (2017), Rechtssicherheit oder Einzelfallgerechtigkeit Morell, Alexander tische Praxis 1, pp. 61-106 im neuen Recht des Delistings The International Court of Justice and judicial European Journal of Vol. 28 (2017), 2, Petersen, Niels politics of identifying customary international International Law pp. 375-385 law Vol. 62 (2017), Robalo, Pedro; Schram, A.; Journal of Economic Other-regarding preferences, in-group bias and October, pp. 130- Sonnemans, J. Psychology political participation: An experiment 154 Vol. 28 (2017), Reciprocity outperforms conformity to pro- Romano, Angelo; Balliet, D. Psychological Science 10, pp. 1490- mote cooperation 1502 Vol. 114 (2017), Romano, Angelo; Balliet, D.; Parochial trust and cooperation across 17 PNAS 48, pp. 12702- Yamagishi, T.; Liu, J. H. societies 12707 Unbounded indirect reciprocity: Is reputa- Romano, Angelo; Balliet, D.; Journal of Experimen- Vol. 71 (2017), tion-based cooperation bounded by group Wu, J. tal Social Psychology July, pp. 59-67 membership? Das behördliche Unabhängigkeitsparadigma Vol. 50 (2017), 4, Steinbach, Armin Die Verwaltung im Wirtschaftsverwaltungsrecht: eine funktio- pp. 507-536 nell-rechtliche Perspektive

15 B. Publications in Target Journals

Vol. 56 (2017), 4, Religion und Neutralität im privaten Arbeitsver- Steinbach, Armin Der Staat pp. 621-651 hältnis Should versus want: On the relative contribu- Thielmann, I.; Hilbig, Journal of Behavioral Vol. 20 (2017), 2, tion of injunctive norms and preferences on Benjamin Decision Making pp. 446-452 trust decisions

16 C. Research Program

17 18 C.I Behavioral Law and Economics

19 C. Research Program

C.I Behavioral Law and Economics

Director: Prof Dr Dr h.c. Christoph Engel External Habilitation Project

Dr Dana Burchardt (law), Free University Berlin

Postdocs Doctoral Students

Phil Brookins, PhD (economics, joined in 2016 from Florida Dr Konstantin Chatziathanasiou (law, Dr jur., Bonn 2018) State University, left in 2019 for University of South Carolina) Dr Leonhard Hoeft (law, Dr jur. Bonn 2018, internal) Claudia Cerrone, PhD (economics, joined in 2016 from Royal Holloway, left in 2020 for Middlesex University) Nina Grgić-Hlača (computer science, joined in 2020, joint with MPI Saarbrücken) Dr Stefanie Egidy (law, joined in 2016 from Würzburg and Yale Universities) Dr Svenja Hippel (economics, Dr rer. pol., Jena 2018)

Dr Jens Frankenreiter (law, joined in 2017 from ETH Zurich, left Mahdi Khesali (law, joined in 2020) in 2019 for Columbia University) Kirsten Marx (economics, joined in 2020) Dr Dr Hanjo Hamann (law and economics, joined as postdoc in 2016) Johannes Rottmann (law, joined in 2020, joint with University of Bonn) Dr Dr Yoan Hermstrüwer (law and economics, joined as postdoc in 2017) Cornelius Schneider (economics, joined in 2016)

Dr Dr Pascal Langenbach (law and economics, joined as post- Marcel Schubert (economics and computer science, joined in doc in 2018) 2017)

Prof Dr Dr Alexander Morell (law and economics, left in 2020 Maj-Britt Sterba (economics, joined in 2017) for Mannheim University) Martin Sternberg (law, joined in 2018) Dr Lawrence O’Hara (law, joined in 2018 from Bucerius Law School) Matthew Trail (law, joined in 2020)

Dr Rima-Maria Rahal (psychology, joined in 2020 from Tilburg Dr Eugenio Verrina (economics, Dr rer. pol., Cologne 2020) University) Yuqi Wang (economics, joined in 2020) Dr Frederike Zufall (law and computer science, joined in 2020) At Cologne University, but attached to the IMPRS and group Part-Time Dr Carina Hausladen (economics and computer science, Prof Dr Andreas Glöckner (psychology, Cologne University) Dr rer. pol., Cologne 2020)

Prof Dr Sebastian Kube (economics, Bonn University) Lisa Lenz (economics)

Alexander Schneeberger (economics)

20 C.I Behavioral Law and Economics

The core mission of the group is research on behavioral law any legal intervention is constructed as an interference with and economics. Hence, in its core, the work is interdisciplinary. a constitutionally protected right; if no more specific right is Since the group is headed by a lawyer, this report is written applicable, the intervention comes under the purview of the from a legal angle. But much of the work in the group could general clause in Art. 2 I Basic Law. Consequently, any legal also be interpreted as contributions to behavioral institutional intervention needs justification. Under the principle of propor- economics, or to behavioral economics more broadly. The tionality, it must pursue a legitimate aim, it must be conducive primary market for former postdocs in law is German law to achieving this aim, it must be the least intrusive interven- schools. To be considered in this market, postdocs must pass tion, and it may not be out of proportion, given the intensity of habilitation and must have a portfolio that matches demand. the intervention, on the one hand, and the pursued goal, on the To a lesser extent, this constraint also affects doctoral stu- other hand. While other constitutions are less encompassing, dents in law. This constraint explains why the lawyers in the they also enshrine the principle of “teleological” interpreta- group cannot exclusively focus on law and economics (wheth- tion: ambiguous legal rules should be interpreted such that er behavioral or not) and must, in particular, be more plural in they foster the goal the rule is meant to achieve. Even without the methods they use, including doctrine. For the group, this invoking the constitution, this doctrinal principle follows from framework condition is not only a limitation. It explains why it an interpretation of legal rules as attempts at governing soci- is, for each legal scholar at the group, to find her personal way ety. In this perspective, interpretation should be attentive to of combining rigorous empirical analysis with a substantial the social purpose the rule is supposed to serve. legal topic of obvious relevance for the discipline. What holds the group together is the commitment to serious empirical Any of these doctrinal approaches builds a bridge between analysis, not one single legal topic. interpreting the law and policy-making. It turns doctrine into a subsidiary exercise in legal policy-making. It is a technolo- The work of the group largely benefits from cooperation with gy for empowering administrative agencies and courts. This the behavioral economics group, with the three independent is why legal orders are differently upfront about this aspect research groups, and with emeritus professor Werner Güth. of doctrine. But even if the language is more cautious (as in Where the links are particularly prominent, this report hints particular in the originalist school of US constitutional law), a at them. All PhD students are part of the International Max certain dose of policy-making by adjudication is hard to avoid. Planck Research School. Since 2016, PhD students in economics are jointly hired with the Cologne Graduate School. Whenever a legal scholar, explicitly or implicitly, engages in Beginning with the 2020 cohort, PhD students in law also policy-making, she must get the facts right. Is there a nor- receive dedicated upfront training. We are grateful to Cologne mative problem in the first place that calls for legal interven- University for making this possible, in the framework of our tion? In which precise ways can this problem be defined? In joint graduate school. The program is tailor-made to the essence this boils down to the law making a causal claim. specific needs of the individual scholar. In particular, it brings There is a social ill. It originates in the behavior of discernible them up to speed for interdisciplinary collaboration. This individuals. As long as this behavior goes unchecked, the invites a focus on methods, including mathematics and mod- social ill will persist, or aggravate, for that matter. elling, game theory, microeconomics, statistics, and experimental design. Despite the fact that three students are paid by The classic illustration is what is in the name of the institute. Cologne University, their work is covered by this report, since Society faces a “collective-goods problem”. If one borrows the in practice there is deliberately no distinction according to assumption of “standard preferences” from (welfare) eco- formal attachment to either Cologne University or the institute. nomics, the normative problem can be precisely defined. The explanatory model makes two interconnected assumptions: From the vantage point of law, the group publishes on five individuals only care about their own profit, and they expect issues: defining normative problems that call for legal inter- everybody else to do the same. If payoffs are such that (a) vention (1), understanding the effect of legal intervention (2), every individual makes the highest profit if all others cooper- judicial and administrative decision-making (3), empirical ate and she defects and (b) every individual makes the lowest methods (4), and, last but not least, translations of empirical profit if she cooperates and all others defect, the situation findings into the legal discourse (5). can be modeled as a prisoner’s dilemma. The game is dominance-solvable, meaning that the individual does not need beliefs about the choices of her (possibly unknown) interac- 1. Normative Problems Calling for Legal tion partners. Whatever they do, she is best off defecting. This Intervention feature of the game constitutes the dilemma. Multiple situations that have indeed met with legal intervention can be ana- Any legal intervention curtails individual freedom. Under lyzed with this model, including most environmental problems, German constitutional law, this statement even implies that contributions to the provision of infrastructure, police and

21 C. Research Program

the military, or financial stability. In the past, all parts of the life the possible distributions of events are not known ex ante. institute have analyzed many of these problems. The group Engel and Goerg (2018) investigate the topic in a dictator has chiefly done so from a behavioral angle. It has aimed at game where the endowment of the recipient, and hence her understanding in which contexts and under which framework deservingness, is uncertain. They have a surprising finding: the conditions the predictive power of the standard economic less the potential donor knows, the more she gives. This sug- model is less good. In which cognitive and motivational ways gests that participants shy away from being responsible for must the standard model be modified? How robust are these exposing the recipient to the worst of all possible situations. qualifications? When individuals face deeper uncertainty, empirically they During the period covered by this report, within this framework are unlikely to model the situation by a subjective state the group has been most interested in risk and uncertainty, space, with subjective probabilities assigned to each element deliberate ignorance, heterogeneity, and normativity. This they deem conceivable. Rather, individuals will dissolve the more basic research has been supplemented by a number of ambiguity by constructing meaning. One powerful technique studies addressing applied normative problems from a behav- to do so is a narrative. Hillenbrand and Verrina (2020) demon- ioral angle. strate a normatively relevant asymmetry. If the experimentally induced narrative favors prosocial action, it has the expected Risk and Uncertainty Most conflicts of life that might call for effect. By contrast, a narrative that favors selfishness only has legal intervention are fraught with uncertainty. In the law and a negative effect on individuals who are prosocial in the first economics literature, the uncertainty is usually modelled as place. If their social value orientation classifies them as rather risk. While the agent does not know in which ways the risk selfish, the negative narrative backfires. This suggests that will materialize, she can calculate its expected value. If one narratives interact with self-esteem. can make this assumption, in principle the classic apparatus of microeconomic theory applies. The additional piece of Uncertainty need not be out there. It may be the (intended or information one needs to predict choices is an individual’s unintended) consequence of institutional intervention, from risk preference. Yet, if the individual interacts with another private parties by designing choice architectures, or from the individual in the face of risk, she needs information about that law. Constitutional law has for a long time been concerned individual’s risk preference, or must replace information with with the potential for induced uncertainty to trigger a chilling her beliefs. Engel, Fedorets et al. (2020) had the good fortune effect. Hermstrüwer and Dickert (2017) test the effect in the to run an experiment on the Intervention Sample of the Ger- lab. In their setting, the deterrent effect is smaller than expect- man Socio-Economic Panel. This has given them access to a ed. Participants are surprisingly prepared to do what they are pool of households in which they had pairs of parents or pairs told, even if this implies that their selfish behavior is made of children interact. It turned out that household members not public on the internet. only have a fairly precise sense of the risk tolerance of other family members. The risk preferences of household members Deliberate Ignorance Some behavioral patterns are easy to are not independent of each other either. Through mating and assess: one would want that people care about the well-being co-development, risk preferences do not converge, but go in of others, or do not cheat, for example. Yet, is it normatively tandem. This helps the law understand in which ways house- unambiguous that individuals retrieve and use the available holds are arrangements for collective risk management. This information? From a deontological perspective, one may think research is related to the work of the behavioral economics so. But what if one knows in advance that there is no chance group, for instance on cooperativeness over the lifespan to act upon the information, as in the case of a disease for (Romano, Bortolotti et al. 2020), and on genetic influences on which there is no cure? And what if one expects that one will risk tolerance (Linnér, Biroli et al. 2019). not be able to neglect the information, for instance when learning that a spouse has been unfaithful? Or what if using Modeling uncertainty as risk is a convenient simplification, the information amounted to prohibited discrimination, so that and sometimes necessary for tractability. Yet, uncertainty may blinding oneself may be the technique to protect an endan- be even deeper. The classic apparatus still applies if possible gered group? Hertwig and Engel (2020) have convoked a realizations of a lottery are not distributed symmetrically, week-long symposium at which, based on a series of commis- or if decision-makers face a compound lottery, i.e., a lottery sioned background papers, a highly select group of psychol- over lotteries. The decision problem gets considerably more ogists, economists, political scientists, sociologists, philoso- involved, though, if even the state space is only partly defined phers, lawyers, and computer scientists have jointly drafted a (for instance by excluding losses) or if decision-makers have series of memoranda that chart this understudied topic. simply no idea about the consequences their choice may have. Considering deeper uncertainty is important from the Hillenbrand and Hippel (2020) study a practical application. perspective of legal policy-making, as in many situations of In principle, online trade empowers consumers. They can

22 C.I Behavioral Law and Economics

conveniently compare the offers of multiple suppliers. Yet, common knowledge, and both individuals are sophisticated this is not easy for consumers to do without leaving electronic about their own behavioral traits, group formation constitutes traces. Suppliers can exploit these data to infer how urgently an interesting behavioral game. a consumer needs their products. This gives a supplier scope for price discrimination. Forward-looking consumers antici- In several experiments, it has been shown that participants pate the effect and refrain from actively searching, for fear of are surprisingly willing to abide by arbitrary rules. Desmet and otherwise getting a bad deal. This is indeed what Hillenbrand Engel (2017) draw a parallel to the well-established concept of and Hippel (2020) find in a lab experiment. conditional cooperation. They find that the willingness to abide by rules is conditional as well: the more of their peers they Cerrone, Feri et al. (2020), in a paper that is under “revise and know to follow the rule, the more the experiment participants resubmit” status with the American Economic Review, add a are willing to obey themselves. Yet, interestingly, in their data, game-theoretic twist and test the situation in the lab. If two social information about following rules never hurts. Com- individuals are regret-averse, they may agree not to choose pared with a baseline where participants only know the rule, an option that is profitable in expectation, to make sure that rule-abiding never decreases when learning how many peers it remains unknown whether the risk of failure would have obey, and the information has a positive effect if following the materialized. rules is sufficiently prevalent.

Heterogeneity In a way, once one adopts a behavioral per- It is a stylized fact that, in a linear public good, average contri- spective to the analysis and design of legal rules, one opens butions start at some intermediate level, and decay over time. Pandora’s box. There are not only many behavioral effects. Fischbacher and Gächter (2010) explain the decay with the These effects not only, at least partly, interact with each other; claim that conditional cooperation is imperfect. While condi- what is even more troublesome is that hardly any behavioral tional cooperators are not outright selfish, they try to outper- effect is universal. Often the heterogeneity does not merely form their peers, if only slightly. In their reanalysis of these create noise. The effect is not only differently pronounced for data, Engel and Rockenbach (2020) show that this explanation different individuals. The heterogeneity is patterned. Some is not supported by the data. True conditional cooperation individuals show an effect that is qualitatively different from turns out to be near-perfect. Yet, far-sighted free-riders mimic the effect shown by others. Understanding the character of conditional cooperators for a while, to sustain the cooper- the heterogeneity, and ultimately even having proxies for the ativeness of the group, and then cash in. Consequently, the character of the trait in specific individuals, is of critical impor- downward trend results from the fact that (a) sufficiently many tance for the design of legal interventions (see already Engel group members are reactive and (b) groups are heteroge- 2005). If the intervention must be uniform, one needs a sense neous. of the overall effect. Is it better to leave the social problem unchecked in some individuals if this prevents a counter-pro- The work of the group on behavioral heterogeneity resonates ductive effect for too many others? This concern is particularly with experiments in the experimental economics group (Bašić, relevant if the intervention risks crowding out normatively Bortolotti et al. 2020; Sutter and Untertrifaller 2020), and by desirable behavior by a large group of the population. In other Werner Güth (Angelovski, Di Cagno et al. 2018). contexts, it may be possible for the law to rely on sufficiently precise signals for behavioral types. Then different interven- Normativity A natural interface between the law and the tions may target different parts of the population. It is even behavioral sciences is normativity. At the highest level of conceivable that the law adopts a two-step approach. In the abstraction, normativity can be defined as the motivational first step, it generates type information, which it exploits in the effect of knowing that a certain behavior is the norm. This second step. This is where the topic touches upon economic norm may be descriptive (others act in some way) or injunc- mechanism design (which, however, would have to be behav- tive (the individual is supposed to behave in a certain way). iorally informed to tackle the challenge in question). These are Engel, Kube et al. (2020) manage descriptive beliefs. In a lin- key questions Pascal Langenbach will address in his habilita- ear public good, they provide participants with selective infor- tion thesis. mation about the average contributions of other participants in the otherwise identical experiment. The sample experiences If information about behavioral heterogeneity is available, indi- are either selected to create favorable expectations about viduals can exploit it to overcome, themselves, what they may cooperation, or unfavorable expectations. They apply the consider to be a behavioral weakness. Cerrone (2020) models design to a voluntary contribution mechanism, and to a game the approach for the case of procrastination. If an individual with punishment and counter-punishment. It turns out that prefers not to be alone (for instance, when preparing for an favorable first impressions only have a significant effect in the exam), she can team up with another individual she expects voluntary contribution mechanism. Unfavorable impressions to be less vulnerable to the weakness. Yet if preferences are only have a significant effect in the game with punishment and

23 C. Research Program

counter punishment. They conclude that (a manipulation of) Engel and Helland (2020) take one of the key concepts of descriptive beliefs only has a sufficiently pronounced effect if Oliver Williamson to the lab. Williamson coined the term “fun- the information comes as a surprise. damental transformation”. Before they strike a deal, in many markets buyers are protected by competition between sellers, Adra, Kirchkamp et al. (2020) are interested in the scope of and sellers are protected by competition among buyers. Yet, injunctive norms. In their experiment, they investigate whether often the buyer may only derive the full benefit from the deal if participants perceive a moral obligation to mutually beneficial she adjusts her own environment, for instance by changing the cooperation even at the global level. Specifically, they are inter- production process. Likewise, the seller may only make a prof- ested in a spillover effect of a pre-existing cooperative rela- it if she adjusts to this specific demand, counting on follow-up tionship. They find that, at the global scale, this spillover effect deals. Once the contract has been signed, both sides enter only exists if basic needs are in peril. In their experiment, into a relationship. Williamson models it as a relation-specific Bašić and Verrina (2020) show that injunctive norms need not investment that is sunk. The incentive effects of this transfor- collapse with social norms. Individuals can be motivated by mation are well understood. If buyer and seller maximize prof- normative precepts that are at variance with the social norms it, they should enter into the relationship if, taking the risk of prevailing in their context, but commanded by personal norms exploitation into account, the expected value remains positive. to which they adhere. Harrs and Sterba (2020) study in which In the experiment, Engel and Helland (2020) test whether there ways personal traumatic experiences with the COVID-19 pan- is an additional behavioral impediment to trade. It might result demic moderate the perceived obligation for redistribution. from the fact that someone may make a windfall profit; that she risks being exploited; that she risks being exploited by a The fact that an individual is aware of a prevailing injunctive person she might exploit herself; that she risks being exploited norm does not guarantee that the norm guides her behavior. after having voluntarily consented to entering the relationship. Krupka and Schneeberger (2020) investigate experimentally Averaging over all observations, there is only an effect of risk to which degree the compliance with group norms is mod- aversion. But it results from heterogeneity. If there is a risk of erated by identification with the group. Irlenbusch, Krupka et exploitation that is perceived to be involuntary, more partici- al. (2020) test whether past morally desirable behavior leads pants shy away from trading. to moral cleansing, and induces individuals to become less norm-abiding on future occasions. Lenz (2020) explains norm Tax evasion is genuinely hard to study in the field. Those found abiding with guilt. She uses a complex experimental design to out to have evaded taxes risk criminal sanctions, and therefore understand guild dissipation in large groups: does the agent have a strong incentive to remain unknown. This has spurred a care less about harm inflicted on one out of many? Does she lively experimental literature. The standard paradigm imposes hide behind the possibility that harm might have been caused a tax, and threatens participants in the lab with a sanction if by other group members? Does she free-ride on the prosocial they are found out to underreport income when, with some actions of others? Is guilt reduced because the agent antici- probability, they are audited by the computer. If one is interest- pates that the recipient expects one of the former effects? ed in tax morale, this paradigm is less than perfect. Engel, Mit- tone et al. (2020) show that participants report a substantial There is a lively debate in the literature whether normativity amount of income even if there is no audit whatsoever. Yet, (often referred to as morality) is intuitive, and selfishness is tax evasion increases if participants are informed that income deliberate, or the other way around. Hausladen and Nikolay- is heterogeneous. This holds irrespective of the tax regime. If chuk (2020) develop a novel design to test this question for a the tax is progressive, participants with low income (who are situation in which the deontological norm against lying coin- privileged by the regime) do not trust participants with high cides with the utilitarian norm against exploiting others (the income to report correctly (although they do not underreport experimenter) by violating a rule. They modify the canonical more than with other tax regimes). die under the cup paradigm and induce intuitive decision-making by time pressure. In their baseline, they use a regular In a series of papers, Nina Grgić-Hlača conceptualizes and die. In this condition, under time pressure, cheating is more tests the fairness of algorithms. She argues that distributional pronounced. Yet the effect disappears if payoff is defined by a fairness is not the only normatively relevant dimension (Spe- color, rather than by the familiar spots on the die. icher, Heidari et al. 2018), and that, in particular, procedural fairness must be considered as well (Grgić-Hlača, Zafar et al. Applied Topics The projects and results reported thus far 2018). She tests her framework by asking lay participants to are relevant for the law as the investigated effects matter for rate the fairness of algorithmic decision aids for assessing the multiple issues addressed by the law. Yet, there is no one-to- risk that a defendant will recidivate (Grgić-Hlača, Redmiles et one mapping between a behavioral effect and an existing or al. 2018). debated legal intervention. This is different with the following projects.

24 C.I Behavioral Law and Economics

Over the past decades, tacit collusion has been studied in An experiment by Albrecht and Schubert (2020) is not motivat- the lab. One of the robust findings is the negative correlation ed by the intention to find a nudge, but can be exploited for the between the number of suppliers and collusion. While there is purpose. Experimental economists have been interested in the still a certain degree of collusion in markets of three, collu- priming effect of language. Languages that require a discern- sion plummets in markets of four or more suppliers (see the ibly different tense for addressing events expected for the meta-study by Engel 2015). Normann and Sternberg (2020) future are correlated with higher degrees of saving. Yet, obvi- test experimentally whether this also holds when human par- ously, a person’s mother tongue cannot be randomly assigned. ticipants interact with the computer, whether or not they are The authors exploit a peculiarity of the German language. aware of this. Speakers have a choice between using the present tense and using the specific future tense. The authors randomly assign Engel and Ockenfels (2020) have put a conjecture of the anti- participants to a condition that uses either of them, but find no trust authorities to the experimental test. The authorities have stable effect on patience (also see Sutter, Angerer et al. 2018). long been concerned that, via a merger, a “maverick”, i.e., a particularly aggressive supplier, leaves the market. Why a sup- The work of the group on nudging resonates with projects plier would act in this way has normally not been questioned. undertaken by the experimental economics group (Balafoutas, They use a lab experiment to investigate a behavioral reason, Fornwagner et al. 2018; Rockenbach, Tonke et al. 2020; Sutter, a preference for outperforming competitors, i.e., for relative Rosenberger et al. 2020). over absolute payoff. Compliance It cannot be taken for granted that new laws shift behavior in the intended direction. The reason need not be 2. Legal Intervention resistance. If a new law remains ineffective, this may simply result from imperfect adaptation. The reason is not motiva- Nudging Nudge units and behavioral insight teams are tional, but (broadly speaking) cognitive. Engel, Klement et al. fuelled by the hope for less intrusive and more effective (2018) use data from Israel to show that this effect may even interventions. A series of projects contributes to this debate, obtain in legal professionals. In the interest of providing better by testing the potential for light-handed intervention. The protection and deterrence, Israel has largely widened the experiment by Engel, Kube et al. (2020) that has already been scope for class action. Yet, the data show that it took sever- reported when discussing the effect of descriptive norms on al years before plaintiff lawyers picked up the new remedy behavior can also be brought under this rubric. It tests wheth- on a broad scale. The paper discusses which assumptions er manipulating first impressions may help contain a social about Bayesian updating must be made for rationalizing dilemma. the observed pattern by way of profit maximization. A more plausible explanation is sociological. Attorneys only jump on The paper by Engel and Kurschilgen (2020) provides the the bandwagon once the use of the remedy in the industry correlate on the side of injunctive norms. Again, in a linear spreads. public good, and in every period, participants are asked to specify either the optimal or the minimally acceptable level In a related vein, Frankenreiter and Hermstrüwer (2020) use of contributions. In a first study, participants are not guided the entry into force of the general data-protection regulation by their self-set optimal norm, but the minimal norm manipu- as an exogenous shock. On a weekly basis, they scrape the lation proves effective. This suggests that a properly tailored privacy policies from a list of major companies. The data elicitation of normative expectations is an effective nudge. show that firms from the U.S. are much less likely to adapt Yet, in two follow-up studies, originally only motivated by the their policies. The authors interpret this as evidence against a desire to make the design of the experiment even cleaner, the “Brussels effect”. effect does not replicate. This demonstrates the fragility of the nudge. It is an old concern that data may remain “in the books”. Engel, Heine et al. (2020) exploit a trace of the colonial past of Another opportunity for nudging could exploit the desire of Pakistan to test the effect experimentally. While under British participants to behave consistently. One could first have them rule, Pakistan was united with India. Pakistan is predominantly decide when their decision has no material consequences a Muslim country, while India is predominantly Hindu. In the for themselves, and would hope that there is a normatively Hindu tradition, wealth is kept in the family upon the death of desirable spillover to the otherwise identical situation where the father, going entirely to the eldest son. The Sharia thinks there is a conflict between the norm and individual profit. otherwise, and even makes the rule unwaivable. Motivated Cerrone and Engel (2019) test this intervention experimentally. by the fact that daughters receive a dowry, two thirds of the Unfortunately, this nudge does not work. father’s property go to all his sons, but one third goes to all the daughters. During colonial times, the Hindu custom spilled

25 C. Research Program

over to Pakistan. Since independence, the Sharia is the law of it really necessary, for the purpose, to be as rigid as assigning the land in matters of inheritance. Yet, anecdotal evidence has absolute, in rem rights? In a world of forward-looking, profit that the rule is routinely circumvented by exerting pressure it-maximizing agents, this would not be necessary. A properly on the daughters to sign a deed, after the death of their father, designed liability rule would also induce individuals to refrain that leaves all the wealth with the eldest son. Engel, Heine et from taking foreign goods. This is not, however, what Bar-Gill al. (2020) test experimentally whether the anecdotal evidence and Engel (2018) find in an experiment. It turns out that the gets it right, and to which degree it is supported by either male inefficiency results from a clash in fairness norms. One group or female participants. of individuals behaves in the spirit of standard theory and is the less likely to take the more they have to pay for doing it. Why is the law not as effective in protecting consumers as the Yet, another group exhibits the diametrically opposite pattern: legislator hoped? Barnes and O’Hara (2020) investigate a cog- the higher the compensation, the less they have inhibitions to nitive channel. While consumer-protection legislation in the UK take. This divergence in fairness norms can also be found in is far-reaching, it requires consumers to take the initiative. The the beliefs of participants whose good might be taken. authors test whether the set of rules is simply too complicated for the typical beneficiary. The absolute right in rem might also be preferable for a cognitive reason. Perfectly rational, profit-maximizing individuals Engel and Kramer (2020) test, in a vignette study, whether would not take foreign goods if they expected them to be consumers refrain from taking legal action because they taken back. In theory, this gives scope for another substitute are deterred by the ambiguity of the law. If the ambiguity is for the absolute right. It suffices if taking is costly, and the made salient, less lay participants indicate that they would amount of money that relevant agents can use for taking seek legal advice. When, by contrast, they are informed that, is common knowledge. Bar-Gill and Engel (2020) test this on average, seeking advice substantially improves both the channel in the lab. It turns out that anticipating even a single probability of success and subjective satisfaction, substan- round of taking is too much. The only intervention that helps tially more participants indicate that they would seek advice. is personal experience with taking (possibly) being pointless. Unexpectedly, however, it turns out that abstract information is Consequently, property is also preferable, as it drastically more effective than concrete information about the experienc- reduces cognitive load. es an individual’s peer has made in a related case. The traditional law and economics interpretation of intellectu- The COVID-19 pandemic has made it inevitable to curtail indi- al property rests on the claim that intellectual achievements vidual freedom substantially. O’Hara and Rahal (2020) use a are (pure) public goods. Others can put them to productive series of vignettes to study whether the willingness to comply use without reducing their value. In this logic, the legal order with these measures depends on the source of the normative introduces a temporal monopoly to establish a quid pro quo: expectation: legislative, administrative, or merely informal. the inventor may exclude others from using the achievement They also test whether the source of the expectation affects unless they have paid for it. This creates incentives for the the degree to which it is perceived as constraining freedom. inventor to engage in socially productive innovation. In the U.S., the incentive interpretation also dominates the copyright Under ordinary circumstances, it is as undesirable from a discourse. European law thinks otherwise. It sees the main deontological perspective that people break the law as it is motive for protecting intellectual creativity in the author’s from a utilitarian perspective. The law has been promulgated self-esteem. She wants to be recognized – also, but not for a purpose, after all. A fairness problem comes on top. If it exclusively – by a chance for making money with her work. In becomes known that some addressees violate a rule, those a field experiment, Bechtold and Engel (2017). present photo who abide by it may consider themselves to be the suckers artists with a series of second-price auctions to elicit their and stop following the rule themselves. Against this backdrop, willingness to trade the possibility of a buyer to use their work the idea that motivates the experiment by Mill and Schneider without mentioning their name, to alter the work, or to destroy (2020) is surprising: could it be that, everything considered, it. In their large majority, participants are unwilling to trade society is better off when tolerating a certain degree of tax these rights in the first place. If they are happy to grant either evasion by top earners? Enforcing the rules against everybody right, they ask for very high prices. might deter productive effort and, in turn, reduce the overall tax return. This is indeed what they find in the lab. The enabling function of auctions results from the way how they organize and standardise trade. In a series of papers, Phil Enabling Rules Legal rules need not be constraining. It can be, Brookins has investigated both theoretically and experimen- by contrast, their purpose to enable private parties to engage tally in which ways the organizing effect suffers if bidders do in individually and socially beneficial exchange. It has often not know ex ante whom they are going to meet in the auction, been argued that this is the main purpose of property. But is and how sophisticated their competitors will be. If the number

26 C.I Behavioral Law and Economics

of competitors is known, theory predicts that individuals site they give advice how to strategize. Hermstrüwer (2019) decrease their effort when the number of competitors increas- experimentally compares this solution with a strategy-proof es. Under population uncertainty, however, this comparative alternative. The German solution fares surprisingly well, which static only holds when the individual entry probability is high. the author explains with a concern for envy. When entry probabilities are sufficiently low, the probability of being the only participant in the contest is much larger than In some contexts, freedom of contract sufficiently empowers zero, which leads to a reduction in effort. Boosey, Brookins et the parties to design themselves a desirable institutional al. (2017) largely confirm this theoretical result experimentally. innovation. Buijze, Engel et al. (2017) start from such a devel- Boosey, Brookins et al. (2019) model population uncertainty, opment. An increasing fraction of donations is channelled both within and between groups, if the competitive agent is through intermediaries. Why would donors prefer this indirect a group. If the number of entrants in an auction is initially route, although the intermediary keeps a fraction of the dona- unknown and endogenous, Boosey, Brookins et al. (2020) find tion, and hence the donor’s ultimate goal is achieved less? that disclosing this number only affects effort if the payoff The authors hypothesize that one reason could be aversion from not participating in the auction is high. against the risk of money a donor gives being subverted. In this reading, a sufficiently prominent intermediary implicitly Money is a uniform currency. It makes everything comparable insures the donation against subversion, by putting her own with everything else. In many contexts, this is a desirable, lib- reputation at risk. They test in the lab whether donors facing erating property. The legal order can leave it to each individual such a risk are willing to even pay for explicit insurance. This which goods and services she desires sufficiently to forego willingness to pay turns out to be pronounced. the opportunity to acquire alternative objects. Yet, for some commodities, society considers trade in exchange against Sanctions Many legal rules are backed up with the threat of money to be repugnant. One widely accepted application is sanctioning those who violate them. Criminal-law theory has higher education. Most legal orders do not allow the most singled out a whole panoply of purposes punishment may attractive schools to auction off places. If compensation by serve. One of them prominently goes back to the thinking of paying a higher price is impossible, one needs a mechanism Jeremy Bentham. He posits that the only legitimate purpose is that matches the preferences of applicants and suppliers. general deterrence. Others who might be tempted to break the Designing such matching mechanisms has recently been law realize that society is vigilant and anticipate that the suf- a very active area of economic research. In the developed fering from the sanction does not outweigh the benefit from countries, the matching mechanisms that are actually in use breaking the rule. This is why Bentham advocates complete are legal in nature. Yet, the law as a discipline has paid little transparency. Engel (2019) uses a linear public good to put attention as yet. This is where the habilitation project of Yoan the claim to the experimental test. It turns out that transpar- Hermstrüwer is situated (Hermstrüwer 2020). ency actually backfires. It is practically not possible to merely inform the public about punishment. At the same time the Designing matching mechanisms is far from trivial if all actors public also learns about the prevalence of the infraction. This have well-behaved preferences and are perfectly rational. information has a crime-enhancing effect that dominates the However, the law is rightly not interested in the agents crime-deterring effect. populating economic models. It must govern the lives of real people. These people exhibit a multitude of behavioral effects From a forward-looking law and economics perspective, it (see Kirchler, Huber et al. 2016). One such effect is the topic does not make a difference whether the legal reaction to of an experiment by Cerrone, Hermstrüwer et al. (2020). In hurting another person is the obligation to compensate this practice, student admission is often governed by the deferred person for the damage, or a fine of equal size. A rational, prof- acceptance mechanism. It is known to lead to inefficiencies. it-maximizing agent anticipates the cost. If this cost (if needs These inefficiencies can be mitigated if students consent to a be multiplied by the probability of detection and enforcement) priority waiver. While the logic of the argument is not difficult outweighs the benefit, she will refrain from harming the other to explain to a theoretician, one cannot expect first to edu- person. In the experiment by Baumann, Friehe et al. (2020), the cate all future students about potentially perverse incentive equivalence does not hold. Investments in care are higher with effects. The experiment tests whether it suffices to make the liability. The authors explain the finding with inequity aversion. waiver the default, or whether efficiency adjustments must be imposed. In the practice of criminal law, sanctions are not only imper- fectly enforced. Typically, would-be perpetrators do not even The German clearinghouse for university admissions (ZVS) know the probability of a sanction being administered. If they has not overlooked the potential for gaming the system were to maximize the expected profit, they would have to use inherent in their mechanism. But rather than replacing it with a Bayes rule to update their original belief about enforcement, mechanism theory showing to be strategy-proof, on their web- in the light of every new piece of information. As the object of

27 C. Research Program

estimation is a probability, estimates should not change with al papers have aimed at casting new light on this old ques- the severity of the sanction, provided severity is held constant. tion. In her habilitation project, Stefanie Egidy investigates In their experiment, however, Friehe, Langenbach et al. (2020) whether, and if so, in which ways, the German Constitutional find that participants react more sensitively to new informa- Court strategically interacts with the parties, in the interest of tion about the likelihood of punishment if they know punish- attracting cases that make it possible for the court to rule on ment to be severe. issues high on its agenda (Egidy 2020). Bechtold, Frankenreit- er et al. (2018) conduct interviews with judges and attorneys Collusion is a pervasive concern in public procurement. Public to demonstrate that forum shopping has a complement in entities have developed a domain-specific solution. If firms are forum selling. In the interest of establishing the Düsseldorf found out to rig bids, they are “debarred” from future contracts court as an attractive place for patent litigation, the court has for a specified period of time. In their experiment, Cerrone, established a practice of assigning cost that is conspicuously Hermstrüwer et al. (2018) show that the sanction can backfire. plaintiff-friendly. If the market is small, excluding a competitor may give the remaining providers scope for tacit collusion. Yet, in an experiment, Engel and Zhurakhovska (2017) do not find any sign of selfishness. In a linear public good, they Crime is not uniformly distributed in the population. While assign the power to punish active members to an outsider, most citizens are never apprehended, let alone convicted, at a cost to herself. Outsiders use the opportunity (and make others have a long, documented criminal history. Breaking the less money), and they predominantly do so in the interest of vicious cycle, and having offenders desist from their criminal disciplining free-riders. This suggests that a person who, like a careers, is a prominent goal of criminal policy, in particular judge, has been assigned an office aims at fulfilling the expec- with juvenile offenders. However, experience shows that tations that come with the position. Exploiting a quasi-natural the goal is not easy to achieve. The Cologne regional court experiment in Israel, Engel and Weinshall Margel (2020) show approached the institute and asked it to evaluate a program that judges react to a reduction in their workload by exerting specifically designed to stop the criminal career of juveniles. more effort on each case. They benefit from the additional A probation officer intensely influences their lives for the dura- leeway to do a better job. tion of half a year. The court allowed Engel, Goerg et al. (2020) randomly to assign the intervention. Unfortunately, overall, In his habilitation thesis, Morell (2020b) argues normatively. the desired significant effect on the recidivism rate does not He posits that the legal order should be concerned if a plaintiff obtain. But there is a local effect. Participants just eligible for fails in court because she cannot prove a legitimate claim. He the program, as defined by the competent judge, are less likely proposes relying on a technique borrowed from mechanism to recidivate when put into the program. design, to make this undesirable outcome less likely. If the judge has reason to believe that the defendant could produce the missing evidence, but does not do so for strategic 3. Rule Application and Rule Generation reasons, the judge should commit to deciding for the plaintiff if the defendant withholds the evidence. The guiding principle of the work reported in the previous sec- tions is behavior. If the law wants to achieve its stated goals, it Ideological Judges? In the complementary political-science should take into account that citizens are not profit-maximiz- literature, judges are normally not assumed to maximize ing machines. Behavioral effects matter for the definition of income or leisure, but to advance ideological causes strategi- the social concern to which the law reacts, and for the expec- cally. This is usually referred to as the attitudinal model. One tation about the way in which addressees will react to legal way of proving the model to be true is relating the decisions intervention. Yet, the law is not made, and it is not applied judges make on the court with the political party of the presi- either, by machines. Judges and administrators are humans dent who has appointed them. In the past, the only possibility as well, as are those involved in making new laws. The third to establish this link was coding. In a prominent dataset, pillar of the work of the group is understanding in which ways William Landes and Richard Posner have applied this tech- legal thinking about rule generation and rule application has to nique to U.S. circuit-court judges, and have established a clear be refined when taking behavioral effects into account. Most ideology effect. Hausladen, Schubert et al. (2020) have picked of this work has focused on the judiciary, but a number of this paper to make a contribution to a contest for replication studies also address administrators and legislators. in empirical legal studies. Using the toolbox of natural language-processing developed by the machine-learning commu- Strategic Judges? Richard Posner once famously wrote: nity, they indeed find the ideology effect, using a much broader “What do judges maximize? The same thing everybody else sample than the original paper. does.” Judges are humans. Humans certainly have the potential to be selfish. Why should that not matter for judges? Sever-

28 C.I Behavioral Law and Economics

European legal scholars have traditionally been sceptical and degrees of normative conflict. Their dependent variable about the attitudinal model. It did not seem to resonate with is the way in which participants process keywords for the experiences. Frankenreiter (2018) shows that one may have to competing normative concerns that are displayed on a single look in the right place. He exploits the fact that, at the Euro- computer screen. This makes it possible to use eye-tracking pean Court of Justice, judges collaborate with the Advocates and collect participants’ gaze patterns. Participants exhibit General. At the court a bench decides, and the input of individ- more and longer fixations if there is normative conflict. If the ual judges on the ruling is not made public. This makes it diffi- concern is an amount of damages that would ruin the defen- cult to trace ideology. By contrast, in every case there is only a dant (so that compensation is in conflict with deterrence), single Advocate General. Jens Frankenreiter shows that there participants are significantly more likely to focus on the com- is a pronounced correlation between the integration friend- pensation item (see also the same methodology used in the liness of the government that has proposed the Advocate context of an economic game (Fiedler and Hillenbrand 2020)). General for the position, and the content of the advisory opinions she issues. In a companion paper, Frankenreiter (2017) Factual Ambiguity Normally, there is no need to go to court explains the citation behavior of judges at the European Court if the facts of the case are undisputed. In practice, however, of Justice with the policy preferences of governments. often even after the judge has heard the evidence, a degree of uncertainty remains. Very often, expected values cannot One channel through which courts can reach their ideologi- be calculated either. The uncertainty about the facts has a cal goals is indirect. The ruling may have an effect on public qualitative nature. There is ambiguity. The case can be seen opinion which, in turn, affects policy-makers. Langenbach and in more than one light. Engel and Güth (2018) explain why it Schneider (2020) investigate this channel for the case of the is not only very difficult, but also inadequate, for a court to European Court of Human Rights. Specifically, with the help decide based on classic decision theory, which would typically of a vignette study, they test whether the impact on public mean subjective probabilities over a subjective state space. opinion is moderated by the channel through which the case They model an alternative approach that is based on the con- has been brought before the court. cept of satisficing, and on explicit normative weights assigned to the risk of false positives versus false negatives. Coding one year of all publicly available decisions by the German Constitutional Court, however, Engel (2020a) does not Engel, Timme et al. (2020) build on earlier work showing that, find any trace of the ideological position of the political party empirically, in the face of factual ambiguity decision-makers that has selected the Justice, and the decisions the court find the outcome with the help of their intuition. The underly- takes when she is on the bench. ing subconscious mental process can be modelled as parallel constraint satisfaction. Decision-makers reason bidirection- Normative Ambiguity Legal decision-making is fraught with ally, from the evidence to potential outcomes, but also from ambiguity. On the normative side, frequently more than one potential outcome back to the evidence. In this process, generally accepted normative concern is competing with each the perception of the evidence is gradually distorted until a other. Critically, normative theory shows that the competing coherent narrative of the case can be constructed. The project concerns may normally not be translated into each other, investigates the ways in which the sequence of hearing the or into one overarching normative currency. There is, for evidence affects this intuitive process. It turns out that there is instance, a conflict between the efficiency goal of maximizing no provisional construction of meaning that becomes sticky. wealth and the distributional goal of reducing the gap between Rather, the evidence presented last has the highest impact on individual income or wealth. Likewise, there is no overarching the decision. In principle, from the perspective of the presump- norm from which to derive the optimal balance between the tion of innocence this is good news, as the defendant is not interest of drivers in unhindered movement, and the interest of cornered by the prosecution initially supporting the charge. It those organizing a demonstration to stir up public attention. is, however, problematic if a legal order, like the American one, Still, decisions must be made. This is when practising lawyers allows prosecution to rebut the defendant’s last word. engage in “balancing”. While the ultimate outcome cannot be determined in the abstract, courts have developed doctrinal Bias Judges are humans. Human decision-making can be tools for this purpose, most prominently the constitutional biased. Is judicial decision-making biased in the same way principle of proportionality. Egidy and O’Hara (2020) use as in lay participants? A sizeable literature has studied this vignettes to test the ways in which this doctrinal tool reduces question, and has had mixed results. Some biases seem to be variance and makes outcomes more predictable. near-universal, while others seem to be held in check by professional education and the institutional framework of legal Engel and Rahal (2019) are interested in the underlying mental decision-making. Morell (2020a) tests experimentally whether process. They present lay participants, in a torts setting, with German judges fall prey to biases in the same way as U.S. a series of vignettes that are characterized by different types judges. Chatziathanasiou (2019) reports the critical debate

29 C. Research Program

about a PNAS paper claiming that judicial decision-making is aid has been challenged, both for a lack of accuracy and for erratic, with stricter parole decisions meted out to prisoners the risk of (racial) bias. The Supreme Court has cleared the whose cases are heard shortly before the judge has lunch. use, but only on the condition that judges receive the advice together with a list of warnings. The experiment uses the Decision Aids Judges are not left alone with their difficult exact same warnings and finds that they have no effect on task. Although it is not routinely discussed in these terms, the verdict, only on the estimated probability of recidivism, and on most important decision aid is doctrine. The experimental confidence. study by Egidy and O’Hara (2020) testing the guiding effect of the doctrinal elements of the proportionality principle has In a vignette study, Hermstrüwer and Langenbach (2020) already been reported. An equally important decision aid investigate in which ways the perceived procedural fairness of are the rules of judicial procedure, like the ones about the an administrative decision is affected if addressees know that sequence in which the parties plead (Engel, Timme et al. the administration has had access to machine predictions. 2020). Engel and Zhurakhovska (2018) experimentally investigate the behavioral effect of the obligation to give explicit Administrative Decision-Making Most of administrative reasons. In another linear public good, an additional partici- decision-making also consists of an application of the law. pant does not benefit from the public project, but has authority Hence in principle all the behavioral effects that are discussed to discipline the group. She is obliged to justify her decision. for the judiciary do also matter. Yet in his habilitation thesis, The experiment manipulates who receives the reasons: only Lawrence O’Hara plans to investigate potential differences in the experimenter (so that active members only know that rea- behavioral effects resulting from the fact that the administra- sons exist, but not which reasons are given); the addressee; all tion does not have a reactive, but a proactive task, and that group members. The results show that experimental author- the individual administrator is reporting to a superior (O’Hara ities partly substitute words for action, but that this strategy 2020). only works if reasons are made public. Frankenreiter (2019) uses machine-learning methods to classify judges’ writing Van Aaken, Broude et al. (2020) test a very specific group of styles. It would be a natural follow-up question whether cer- international administrators with the help of a vignette study. tain writing styles are more effective in generating consistency Humanitarian negotiators have to “dance with the devil”. They within judges, compliance with normative expectations of the regularly face a conflict between pushing the boundaries of rule in question, or the willingness of the parties to abide by the rules they are supposed to obey, and failing to help those the ruling. who dearly, if not existentially, need this help. The vignettes test under which conditions humanitarian negotiators strike In recent years, a different type of decision aid has gained this balance in which way. prominence. Judges are provided with machine predictions, for instance about the risk of a person who has been appre- Legislative Decision-Making The legislator is not a single hended by the police committing another crime before being person. Potential behavioral effects on legislative deci- tried, when released on bail. A pro bono organization, relying sion-making are therefore moderated by the complex institu- on freedom of information legislation, has followed up more tional arrangement for passing new law. Unpacking this mod- than 6,000 cases in which the COMPAS tool has been used erating effect is a challenge for the future (see for building for the purpose, and knows the crime record of the defendant. blocks of this analysis Engel 2010). At this point, the relevant It turns out that the accuracy of the advice is only 68%, and work of the group focuses of behavioral effects that could hence fairly low. Grgić-Hlača, Engel et al. (2019) randomly plausibly affect all actors involved in this process in approxi- select 50 of these cases, translate them into vignettes, and mately the same way (so that it is less worrisome to neglect first ask lay participants provisionally to choose between internal differentiation and process). bail and jail. Thereafter, they receive the actual advice for the case in question. It turns out that only a small fraction of Langenbach and Tausch (2019) study experimentally whether participants react to the advice. If they do, they are more likely the cooperation-enhancing effect of direct-democratic proce- to shift from jail to bail. Informing participants about ground dures in the present generation also extends to future gener- truth in cases they have already heard, or giving them a finan- ations in which no democratic decision takes place. They find cial incentive to find ground truth, prove ineffective. The only an asymmetrical effect: while the cooperative effect of the manipulation that has an effect is an incentive to follow the democratic adoption of a cooperation-enhancing rule vanishes advice, whether accurate or not. in a future generation, the anti-cooperative effect of the democratic rejection of the same rule persists over generations. Using the same stimulus material, Engel and Grgić-Hlača (2020) put a ruling of the Wisconsin Supreme Court to the The experimental project by Chatziathanasiou, Hippel et al. experimental test. In a prominent case, the use of the decision (2020a) investigates whether the threat of overthrow stabiliz-

30 C.I Behavioral Law and Economics

es a constitution. The experiment tests whether the fact that more than once. Most experimentalists simply discard these elites can be overthrown by non-elites has a disciplining effect data points. There is also a number of proxies for dealing with on elites, and a legitimizing effect on an efficient, yet inequita- these cases. Others eschew the problem and use the test by ble order; for most experimental groups, this does not turn out Eckel and Grossman (2008). It forces consistency. to be the case. Yet, a rule that makes redistribution mandatory does indeed stabilize the experimental constitutional order in Inconsistent choices are not necessarily bad data. Partici- the face of heterogeneous earning opportunities (Chatziatha- pants may have switched more than once because they were nasiou, Hippel et al. 2020b). uncertain. And even if they have been less than perfectly attentive to the task, the estimate of the population effect may be biased if the inconsistent choices suggest a higher (or low- 4. Method Development er, for that matter) degree of risk aversion than the consistent choices. Engel and Kirchkamp (2019) develop a technique for Behavioral analysis has a long tradition in psychology and simultaneously estimating the treatment effect of interest, economics. For the most part, it fully suffices to choose wisely and risk preferences as a potential determinant. The method among the methods that have been developed by these dis- weights the individual specific measure of risk aversion with ciplines. The majority of the empirical projects undertaken by its precision. Since this makes estimation more transparent, the group use the standard paradigm in experimental econom- they propose a Bayesian approach. But the method could also ics, i.e., the incentivized, interactive experiment in a physical be used in a frequentist framework, in a precision-weighted lab. Ultimately, however, the choice of method must follow the structural model. research question. If one is interested in the effect of mating and co-development, random assignment to treatment is Detection Lab experiments privilege internal over external impossible. One can at best exploit the fact that the games validity. This is helpful if one wants to be sure about causal- of life have created variance. We have had the opportunity ity. But extrapolating from lab findings to legal applications to test members of households from the German Socio-Eco- always requires a leap of faith. Sternberg and Schubert (2020) nomic Panel for this purpose (Engel, Fedorets et al. 2020). If plan to use machine-learning methods to extend the scope of one wants to learn whether a new criminal sanction delivers experimental methods, in the area of collusive pricing. They on promises, a lab experiment with students would not be plan to proceed in two steps. In the first step, they exploit credible. We have had the good fortune instead to run a field the fact that, with an in-depth study of the German fossil-fuel experiment with real convicts (Engel, Goerg et al. 2020). If one market, the German cartel office has documented a case of wonders whether and in which ways doctrine guides judge- collusive pricing. They want to use prototype extraction to ment and decision-making, one must present participants with characterize the collusive pricing pattern. In the second step, sufficient context, provided by vignettes, to study the effect they plan to match this pattern with experimental data where (Egidy and O’Hara 2020). If one wishes to observe legal rea- they can manipulate conditions such that they are more or soning in action, one needs a proxy for mental process, which less favorable for collusion. If the pattern they find with obser- is provided by eye-tracking (Engel and Rahal 2019). If one vational data correlates with a pattern found in the experimen- needs an objective measure for text as the dependent variable, tal data, there may be room for capitalizing on experimental this can be provided by natural language-processing methods data in the interest of detecting further instances of collusion (Hausladen, Schubert et al. 2020). Yet despite the richness in the field. of the existing toolbox for behavioral research, sometimes the perfect tool is missing. This is why the group has also Heterogeneity Once one takes the possibility into account engaged in method development. that a behavioral effect is not uniform, the analysis of experimental data becomes more challenging. Frequently, one has Precision Experimentalists pride themselves in the cleanli- no additional information for matching participants to types. ness of their data. After all, it results from random assignment One is forced to extract the type space from the data, and to to treatment. Yet, even data that are seemingly crystal-clear estimate reactions to treatment conditional on type. In prin- may suffer from weaknesses. The standard measure for risk ciple, this is what finite mixture models have been developed aversion, the test by Holt and Laury (2002), illustrates the for. However, they come with a number of limitations that point. Experimentalists typically use the point at which a par- constrain their use with experimental data. One must posit the ticipant switches from choosing the lottery with the smaller number of types and cannot infer them from the data. Estima- spread to the lottery with the larger spread as their measure. tion is with maximum likelihood, which is why one must make If the participant chooses consistently among the 10 pairs of distributional assumptions. Finite mixture models are difficult lotteries, with increasing winning probability, this way of con- to use if the experiment is repeated or even repeated and densing the data is perfectly fine. Yet, empirically, a (usually interactive, as estimation is already two-dimensional (types not large, but discernible) minority of participants switches and choices), and would have to be three- or even four-dimen-

31 C. Research Program

sional, to accommodate individual and group-specific random organized, and they rely much more on professional context. effects. In practice, experimental datasets are often simply too Hausladen, Schubert et al. (2020) adapt the methodology to small to estimate these data-hungry statistical models. this different class of text, for instance by separately coding citations and quotations, by excluding headings (as they might Engel (2020b) develops an alternative two-step estimator that contain judges’ names), or by putting dissenting opinions into overcomes these limitations. It requires repeated observations a separate dataset. They demonstrate how supervised learn- and the assumption that type varies between, but not within, ing can be used to extend hand-coding of a small fraction of participants. In a first step, one may then regress the choices the data to a much larger dataset. of each participant on time (and on higher polynomials of time if one suspects nonlinearities). The coefficients of these local Hanjo Hamann spearheads the movement towards applying regressions can be used as input for a machine-learning clas- corpus linguistics to legal text. Vogel, Hamann et al. (2018) sifier. Engel proposes to use CART, as results are then easy summarize the activities, and introduce the tool to the legal to interpret. This first step generates an estimated type per community. participant. In the second step, this estimate can be interact- ed with experimental manipulations, to identify a population Empirical Methods for the Law As they mature, most empirical effect conditional on type. disciplines have developed discipline-specific techniques for data generation and data analysis. The standard design of eco- It has already been explained that the characteristic downward nomic experiments is a good illustration. Social psychology has trend in linear public-goods experiments can only be rational- a much longer experience in isolating behavioral effects. Yet, ized with the heterogeneity of behavioral types. While this het- the typical behavioral economist wants to test formal theory. erogeneity is not disputed in the discipline, very little is known This makes it possible to use much simpler, and thereby clean- about the composition of the type space. Utility functions have er, designs, and to create additional credibility by the no-cheat- been proposed that would yield conditional cooperation. But it ing norm and by financial incentives. The characteristic feature is far from clear whether they do indeed capture the behavioral of the legal discipline is its proximity to legal practice. At least programs participants adopt in this setting. Engel, Hausladen implicitly, legal scholars tend to argue normatively. They want et al. (2020) compile a dataset with more than 18,000 exper- to suggest more effective ways of addressing social ills. And imental observations and use machine-learning methods for they take into account that any improvement must be imple- charting the type space. mented by administrators and judges. Engel (2018a) discusses the ways in which empirical methods should be adjusted to this As types are allowed to be reactive, two-dimensional cluster- disciplinary task. ing of time series is appropriate. Each individual is characterized by the pattern of her own choices over time, as potentially A straightforward, but important, adjustment concerns signifi- reacting to the mean contribution of the remaining group cance-testing. Making a false causal claim is not the only con- members in the previous period. They use simulation to find cern. In the spirit of the precautionary principle, the law may the best configuration of the algorithm, and in particular the rely on quantitative evidence, since it alerts the law to a serious number of clusters to be estimated. For reactive types, it does risk of a false negative decision. An additional challenge, not not suffice to estimate as many clusters as one expects to faced by most of the social sciences, is the contentious nature have types; depending on the experiences they make, partici- of legal decision-making. The goal of the parties is not finding pants with identical, reactive choice programs exhibit patterns the truth, but influencing the decision-maker in their favor. If that look completely different. Using this methodology, they they expect the decision to be based on quantitative evidence, find multiple hitherto untheorized types in the experimental they likely try to doctor the evidence. On the other hand, legal data. Many of these patterns suggest that participants are decision-making is often adversarial. The opponent will also be actually selfish, but use various strategies to maintain the level heard. This opens up an avenue for imperfect, but institutional- of cooperation in the group that they want to exploit. Many ly contained, quantitative evidence. choice patterns also suggest exploration. Participants only gradually adjust to experiences once they become more confident that they have gained a sense of the likely development 5. Translation of choices in their group. The definitional feature of the group is the application of meth- Text Analysis The law does not normally produce data, but ods from the social sciences to legal issues. A natural audience words. Quantitative methods require the translation of words for this work is the empirical legal movement. As the group is into data. Several projects have dealt with this challenge. In interdisciplinary, it also publishes in economics, psychology, principle, this is obviously a task for natural language process- and computer science. Yet, the group not only wants to address ing. Yet, judicial opinions are not Twitter. They are much more specialists. It wants to help the legal community at large with

32 C.I Behavioral Law and Economics

defining normative problems more precisely, designing more the German tradition, also criminal law due to its criminology effective legal interventions, and improving the procedure by branch. At any rate, work that analyzes public law from a behav- which legal professionals reach decisions. It cannot be taken ioral angle is scant. A collective endeavor of the public lawyers for granted that this wider audience is literate in quantitative at the institute is meant to fill the void (Engel, Egidy et al. 2020). methods. It is necessary for them to benefit from the results generated with the toolbox of the social and behavioral-science Hamann and Hoeft (2017) alert German private lawyers to translation. the perils of survey research. Petersen and Chatziathanasiou (2019) and Petersen and Chatziathanasiou (2020) explain the Translation is a critical component in the habilitation projects potential of empirical research for comparative constitutional of all senior lawyers in the group. Alexander Morell relies on law, and for the analysis of judicial decision-making. Frankenre- insights from mechanism design to develop his solution for iter and Livermore (2020) discuss the potential of computation- closing the gap between legal rights and success in the court- al methods for legal research. Frankenreiter and Dumas (2019) room (Morell 2020b). Stefanie Egidy reinterprets movements do the same for natural language processing. Engel (2018b) by the courts, and the German Constitutional Court in partic- surveys experimental contributions to criminal law. ular, as strategic litigation, using concepts from game theory to conceptualize the observations. She checks empirically whether the development of the jurisprudence of the Constitu- References tional Court is consistent with this explanation, and discusses Adra, A., Kirchkamp, O., Sterba, M.-B. and Ungwang, L. (2020). Large- it from the normative vantage point of constitutional law (Egidy scale Cooperation and Moral Obligations. 2020). Hanjo Hamann uses empirical methods to cast light on Albrecht, F. and Schubert, M. (2020). The Effect of Grammatical Varia- one of the most opaque provisions of private law, the right of tion on Economic Behavior. the tenant to reduce the rent if the landlord fails to fix a defect (Hamann 2020). Yoan Hermstrüwer reacts to the fact that Angelovski, A., Di Cagno, D., Güth, W., Marazzi, F. and Panaccione, L. (2018). Does Heterogeneity Spoil the Basket? The Role of Produc- German public law has almost completely neglected the tech- tivity and Feedback Information on Public Good Provision. Journal niques developed by economic mechanism design, and match- of Behavioral and Experimental Economics, 77, 40-49. ing procedures in particular. He not only explains the logic to Balafoutas, L., Fornwagner, H. and Sutter, M. (2018). Closing the Gen- the legal community, and discusses comparative advantages der Gap in Competitiveness Through Priming. Nature Communica- of competing solutions; he also develops the appropriate legal tions, 9(1), 1-6. apparatus for evaluating the mechanisms (Hermstrüwer 2020). Bar-Gill, O. and Engel, C. (2018). How to Protect Entitlements. An In a similar vein, Pascal Langenbach reflects on the observation Experiment. Journal of Law and Economics, 61(3), 525-553. that most behavioral effects are heterogeneous in the definition Bar-Gill, O. and Engel, C. (2020). Property is Dummy Proof. An Experi- of the goals of public-law rules, discussing the design and the ment. MPI Discussion Paper 2020/2. constitutionality of heterogeneous responses by the legal order Barnes, V. and O’Hara, L. (2020). Legal Literacy and its Driving Factors. (Langenbach 2020). Lawrence O’Hara relies on behavioral eco- The Case of UK Consumer Law. nomics and social psychology to develop legal principles for Bašić, Z., Bortolotti, S., Cappelen, A. W., Gneezy, U., Salicath, D., a subfield of public law that academia has almost completely Schmidt, S., Schneider, S. O., Sutter, M. and Tungodden, B. (2020). left to practitioners: the internal organization of administrative Heterogeneity in Effort Provision: Evidence from a Lab-in-the-Field authorities (O’Hara 2020). Experiment. Bašić, Z. and Verrina, E. (2020). Social Norms, Personal Norms and All of these (existing or emerging) books are situated at the Image Concerns. interface between the respective social or behavioral science Baumann, F., Friehe, T. and Langenbach, P. (2020). Fines versus Dam- and legal scholarship. The social-science expertise of the ages: Experimental Evidence on Care Investments. author is indispensable to the endeavor. But the purpose of Bechtold, S. and Engel, C. (2017). The Valuation of Moral Rights. A the book is not applying quantitative methods. The books care Field Experiment. about being accessible to the legal community. More impor- Bechtold, S., Frankenreiter, J. and Klerman, D. (2018). Forum Selling tantly even, they investigate in which ways results and insights Abroad. Southern California Law Review, 92, 487-556. from the social and behavioral sciences call for a reinterpreta- Boosey, L., Brookins, P. and Ryvkin, D. (2017). Contests with Group tion of existing legal rules and concepts, and for the design of Size Uncertainty. Experimental Evidence. Games and Economic new institutional interventions. Behavior, 105, 212-229. Boosey, L., Brookins, P. and Ryvkin, D. (2019). Contests Between Four of the five habitation projects are situated in public law. Groups of Unknown Size. Games and Economic Behavior, 113, One may argue that (German) public law has less intensely 756-769. engaged with the social and behavioral sciences than private Boosey, L., Brookins, P. and Ryvkin, D. (2020). Information Disclosure law, in particular, and, as this is not a separate discipline in in Contests with Endogenous Entry. An Experiment. Management Science, 66(11), 5128-5150.

33 C. Research Program

Buijze, R., Engel, C. and Hemels, S. (2017). Insuring Your Donation. An Engel, C., Egidy, S., Hermstrüwer, Y., Hoeft, H., Langenbach, P. and Experiment. Journal of Empirical Legal Studies, 14, 858-885. O’Hara, L. (2020). Verhaltenswissenschaftliche Analyse des öffent- lichen Rechts. Cerrone, C. (2020). Doing it When Others Do. A Strategic Model of Procrastination. Economic Inquiry, forthcoming. Engel, C., Fedorets, A. and Gorelkina, O. (2020). Risk Taking in the Household. Strategic Behavior, Social Preferences, or Interdepen- Cerrone, C. and Engel, C. (2019). Deciding on Behalf of Others Does dent Preferences? MPI Discussion Paper 2018/14, revised 2020. Not Mitigate Selfishness: An Experiment.Economics Letters, 183, 108616. Engel, C. and Goerg, S. J. (2018). If the Worst Comes to the Worst. Dictator Giving When Recipient’s Endowments Are Risky. Euro Cerrone, C., Feri, F. and Neary, P. R. (2020). Ignorance is Bliss. A Game pean Economic Review, 105, 51-70. of Regret. Engel, C., Goerg, S. J. and Traxler, C. (2020). Evaluating Intensive Pro- Cerrone, C., Hermstrüwer, Y. and Kesten, O. (2020). School Choice with bation for Juvenile Offenders. Evidence from Germany. Consent. An Experimental Study. Engel, C. and Grgić-Hlača, N. (2020). Machine Advice with a Warning Cerrone, C., Hermstrüwer, Y. and Robalo, P. (2018). Debarment and about Machine Limitations. Experimentally Testing the Solution Collusion in Procurement Auctions. R&R: Games and Economic Mandated by the Wisconsin Supreme Court. Behavior. Engel, C. and Güth, W. (2018). Modeling a Satisficing Judge.Rationali - Chatziathanasiou, K. (2019). Der hungrige, ein härterer Richter? Zur ty and Society, 30, 220-246. heiklen Rezeption einer vielzitierten Studie. JuristenZeitung, 74, 455-458. Engel, C., Hausladen, C. and Schubert, M. (2020). Charting the Type Space. The Case of Linear Public Good Games. Chatziathanasiou, K., Hippel, S. and Kurschilgen, M. (2020a). Do Rights to Resistance Discipline the Elites? An Experiment on the Threat Engel, C., Heine, K. and Rana, S. (2020). Law in the Books. Experimen- of Overthrow. MPI Discussion Paper 2020/27. tally Testing the Power of Social Norms to Invalidate the Law. Chatziathanasiou, K., Hippel, S. and Kurschilgen, M. (2020b). Property, Engel, C. and Helland, E. (2020). Does the Fundamental Transforma- Redistribution, and the Status Quo. A Laboratory Study. Experi- tion Deter Trade? An Experiment. MPI Discussion Paper 2020/23. mental Economics. Engel, C. and Kirchkamp, O. (2019). How to Deal with Inconsistent Desmet, P. and Engel, C. (2017). People Are Conditional Rule Followers. Choices on Multiple Price Lists. Journal of Economic Behavior & Organization, 160, 138-157. Eckel, C. C. and Grossman, P. J. (2008). Forecasting Risk Attitudes. An Experimental Study Using Actual and Forecast Gamble Choices. Engel, C., Klement, A. and Weinshall Margel, K. (2018). Diffusion of Journal of Economic Behavior & Organization, 68(1), 1-17. Legal Innovations: The Case of Israeli Class Actions. Journal of Empirical Legal Studies, 15, 708-731. Egidy, S. (2020). Strategische Prozessfuhrung. Engel, C. and Kramer, X. (2020). How Do Laypeople Navigate the Maze Egidy, S. and O’Hara, L. (2020). Structured Balancing of Interests. How of the Law? A Vignette Study. Structured Decision-Frameworks Affect the Rationality of Balancing Decisions in Constitutional Law. Engel, C., Kube, S. and Kurschilgen, M. (2020). Managing Expectations. How Selective Information Affects Cooperation. Engel, C. (2005). Generating Predictability. Institutional Analysis and Institutional Design. Cambrige, Cambridge University Press. Engel, C. and Kurschilgen, M. (2020). The Fragility of a Nudge. The Power of Self-set Norms to Contain a Social Dilemma. Journal of Engel, C. (2010). The Behaviour of Corporate Actors. A Survey of the Economic Psychology, 81, 102293. Empirical Literature. Journal of Institutional Economics, 6, 445- 475. Engel, C., Mittone, L. and Morreale, A. (2020). Tax Morale and Fairness in Conflict. An Experiment,Journal of Economic Psychology, 81, Engel, C. (2015). Tacit Collusion. The Neglected Experimental Evi- 102314. dence. Journal of Empirical Legal Studies, 12, 537-577. Engel, C. and Ockenfels, A. (2020). Maverick: Experimentally Testing a Engel, C. (2018a). Empirical Methods for the Law. Journal of Institu- Conjecture of the Antitrust Authorities . In: Advances in the Sociol- tional and Theoretical Economics, 174, 5-23. ogy of Trust and Cooperation. V. Buskens, R. Corten, C. Snijders Engel, C. (2018b). Experimental Criminal Law. A Survey of Contri- (eds.). deGruyter: Berlin/Munich/Boston, 357-390. butions from Law, Economics and Criminology. Empirical Legal Engel, C. and Rahal, R.-M. (2019). Justice is in the Eyes of the Beholder. Research in Action. W. v. Boom, P. T. Desmet and P. Mascini. Eye Tracking Evidence on Balancing Normative Concerns in Torts Cheltenham, 57-108. Cases. Engel, C. (2019). When Does Transparency Backfire? Putting Jeremy Engel, C. and Rockenbach, B. (2020). What Makes Cooperation Bentham’s Theory of General Prevention to the Experimental Test. Precarious? MPI Working Paper. Journal of Empirical Legal Studies, 16(4), 881-908. Engel, C., Timme, S. and Glöckner, A. (2020). Coherence-Based Rea- Engel, C. (2020a). Does Efficiency Trump Legality? The Case of the soning and Order Effects in Legal Judgments. Psychology, Public German Constitutional Court. Selection and Decision in Judicial Policy, and Law, 26(3), 333-352. Process Around the World. Empirical Inquiries. Y.-C. Chang. Cam- bridge, Cambridge University Press, 261-286. Engel, C. and Weinshall Margel, K. (2020). Manna from Heaven for Judges. Judges’ Reaction to a Quasi-Random Reduction in Case- Engel, C. (2020b). Estimating Heterogeneous Reactions to Experimen- load. Journal of Empirical Legal Studies, 17(4), 722-751.. tal Treatments. Journal of Economic Behavior & Organization, 178, 124-147.

34 C.I Behavioral Law and Economics

Engel, C. and Zhurakhovska, L. (2017). You Are in Charge: Experimen- Hermstrüwer, Y. (2019). Transparency and Fairness in School Choice tally Testing the Motivating Power of Holding a Judicial Office. Mechanisms. Journal of Legal Studies, 46, 1-50. Hermstrüwer, Y. (2020). Öffentliche Verteilungsverfahren. Matching im Engel, C. and Zhurakhovska, L. (2018). Do Explicit Reasons Make Legal Öffentlichen Recht. Intervention More Effective? An Experimental Study. Hermstrüwer, Y. and Dickert, S. (2017). Sharing is Daring. An Exper- Fiedler, S. and Hillenbrand, A. (2020). Gain-loss Framing in Interdepen- iment on Consent, Chilling Effects and a Salient Privacy Nudge. dent Choice. Games and Economic Behavior, 121, 232-251. International Review of Law and Economics, 51, 38-49. Fischbacher, U. and Gächter, S. (2010). Social Preferences, Beliefs, Hermstrüwer, Y. and Langenbach, P. (2020). Perceived Fairness of and the Dynamics of Free Riding in Public Good Experiments. Algorithmic Administration. An Experiment. American Economic Review, 100, 541-556. Hertwig, R. and Engel, C. (Eds.) (2020). Deliberate Ignorance. Choosing Frankenreiter, J. (2017). The Politics of Citations at the ECJ. Policy Not to Know. Cambridge (Mass), MIT Press. Preferences of EU Member State Governments and the Citation Behavior of Judges at the European Court of Justice. Journal of Hillenbrand, A. and Hippel, S. (2020). Strategic Inattention in Product Empirical Legal Studies, 14(4), 813-857. Search. Frankenreiter, J. (2018). Are Advocates General Political? Policy Hillenbrand, A. and Verrina, V. (2020). The Differential Effect of Narra- Preferences of EU Member State Governments and the Voting tives on Prosocial Behavior. Behavior of Members of the European Court of Justice. Review of Holt, C. A. and Laury, S. K. (2002). Risk Aversion and Incentive Effects. Law & Economics, 14(1), 20160037. American Economic Review, 92, 1644-1655. Frankenreiter, J. (2019). Writing Style and Legal Traditions. Law as Irlenbusch, B., Krupka, E. and Schneeberger, A. (2020). Moral Cleansing. Data: Computation, Text, and the Future of Legal Analysis, Santa Fe Institute Press, 153-190. Kirchler, M., Huber, J., Stefan, M. and Sutter, M. (2016). Market Design and Moral Behavior. Management Science, 62(9), 2615-2625. Frankenreiter, J. and Dumas, M. (2019). Text as Observational Data. Law as Data: Computation, Text, and the Future of Legal Analysis. Krupka, E. and Schneeberger, A. (2020). Compliance with Group M. A. Livermore and D. Rockmore, Santa Fe Institute Press, 59-70. Norms. Frankenreiter, J. and Hermstrüwer, Y. (2020). Privacy’s Great Shock: Langenbach, P. (2020). Governing a Heterogeneous Population. The GDPR and Privacy Polices around the Globe. Langenbach, P. and Schneider, C. (2020). Courts Shaping Public Frankenreiter, J. and Livermore, M. A. (2020). Computational Methods Opinion. An Experiment on the European Court of Human Rights. in Legal Analysis. Annual Review in Law and Social Sciences, 16, Langenbach, P. and Tausch, F. (2019). Inherited Institutions. Coop- 39–57. eration in the Light of Democratic Legitimacy. Journal of Law, Friehe, T., Langenbach, P. and Mungan, M. (2020). Sanction Severity Economics, and Organization, 35(2), 364-393. Influences Learning About Enforcement Policy. Experimental Lenz, L. (2020). Guilt in Multi-Agent Games. Evidence. Linnér, R. K., Biroli, P., [...] Sutter, M., Kong, E., Meddens, S. F. W., Grgić-Hlača, N., Engel, C. and Gummadi , K. P. (2019). Human Decision Wedow, R., Fontana, M. A., Lebreton, M., Tino, S. P., Abdellaoui, Making with Machine Assistance. An Experiment on Bailing and A. and Hammerschlag, A. R. (2019). Genome-wide Association Jailing. Proceedings of the ACM on Human-Computer Interaction. Analyses of Risk Tolerance and Risky Behaviors in over 1 Million Grgić-Hlača, N., Redmiles, E. M., Gummadi , K. P. and Weller, A. (2018). Individuals Identify Hundreds of Loci and Shared Genetic Influenc- Human Perceptions of Fairness in Algorithmic Decision Making. A es. Nature Genetics, 51(2), 245-257. Case Study of Criminal Risk Prediction. Proceedings of the 2018 Mill, W. and Schneider, C. (2020). The Bright Side of Tax Evasion. World Wide Web Conference. Morell, A. (2020a). Cognitive Biases in German Judges. Grgić-Hlača, N., Bilal Zafar, M., Gummadi , K. P. and Weller, A. (2018). Beyond Distributive Fairness in Algorithmic Decision Making, Fea- Morell, A. (2020b). Der Beibringungsgrundsatz. Eine Rechtfertigung ture Selection for Procedurally Fair Learning. Thirty-Second AAAI unter besonderer Berucksichtung der Passivität der nicht beweis- Conference on Artificial Intelligence. belasteten Partei. Hamann, H. (2020). On Quantifying Habitability. Judicial Methods to Normann, H.-T. and Sternberg, M. (2020). Algorithmic Pricing and Calculate Rent Reduction in Tenancy Contracts. Collusion in Hybrid Human-Computer Laboratory Markets. An Experiment. Hamann, H. and Hoeft, H. (2017). Die empirische Herangehensweise im Zivilrecht. Lebensnähe und Methodenehrlichkeit für die juris- O’Hara, L. (2020). Fuhrung durch Recht. tische Analytik? Archiv für die civilistische Praxis (AcP), 217(3), O’Hara, L. and Rahal, R.-M. (2020). Context-dependence of Normative 311-336. Judgments? Patterns in Perceptions of Normative Force, Risk Harrs, S. and Sterba, M.-B. (2020). Lost Control. Personal Experiences and Threat, and Ethical Dilemmas – Evidence From a Longitudinal during the COVID-19 Pandemic and Preferences for Redistribution. Survey Study During the COVID-19 Epidemic and Beyond. Hausladen, C., Schubert, M. and Ash, E. (2020). Text Classification of Petersen, N. and Chatziathanasiou, K. (2019). Empirische Verfas- Ideological Direction in Judicial Opinions. International Review of sungsrechtswissenschaft. Zu Möglichkeiten und Grenzen quanti- Law and Economics, 62, 105903. tativer Verfassungsvergleichung und Richterforschung. Archiv des öffentlichen Rechts, 144, 501-553. Hausladen, C. and Nikolaychuk, O. (2020). Color me Honest! Time Pressure and (Dis-)Honest Behavior.

35 C. Research Program

Petersen, N. and Chatziathanasiou, K. (2020). Empirical Research in Comparative Constitutional Law. The Cool Kid on the Block or All Smoke and Mirrors? International Journal of Constitutional Law (forthcoming). Rockenbach, B., Tonke, S. and Weiss, A. (2020). From Diagnosis to Treatment: An Experiment to Reduce Non-payments for Water. Romano, A., Bortolotti, S., Hofmann, W., Praxmarer, M. and Sutter, M. (2020). Generosity and Cooperation Across the Life Span: A Lab- in-the-Field Study. Psychology and Aging (forthcoming). Speicher, T., Heidari, H., Grgić-Hlača, N., Gummadi, K. P., Singla, A., Wel- ler, A. and Bilal Zafar, M. (2018). A Unified Approach to Quantifying Algorithmic Unfairness. Measuring Individual & Group Unfairness via Inequality Indices. Proceedings of the 24th ACM SIGKDD Inter- national Conference on Knowledge Discovery & Data Mining. Sternberg, M. and Schubert, M. (2020). Matching Lab and Field Data on Collusion with the Help of Machine Learning. Sutter, C., Rosenberger, W. and Sutter, M. (2020). Nudging With Your Child’s Education. A Field Experiment on Collecting Municipal Dues When Enforcement is Scant. Economics Letters, 109116. Sutter, M., Angerer, S., Glätzle-Rützler, D. and Lergetporer, P. (2018). Language Group Differences in Time Preferences. Evidence From Primary School Children in a Bilingual City. European Economic Review, 106, 21-34. Sutter, M. and Untertrifaller, A. (2020). Children’s Heterogeneity in Cooperation and Parental Background: An Experimental Study. Journal of Economic Behavior & Organization, 171, 286-296. van Aaken, A., Broude, T., Engel, C. and Luckner, K. (2020). Does Neces- sity Know No Law? An Experiment with Humanitarian Negotiators. Vogel, F., Hamann, H. and Gauer, I. (2018). Computer-assisted Legal Linguistics. Corpus Analysis as a New Tool for Legal Studies. Law & Social Inquiry, 43(4), 1340-1363.

36 C.II Experimental Economics

37 C. Research Program

C.II Experimental Economics Group (EEG)

Director: Prof Dr Matthias Sutter Doctoral Students

Dr Zvonimir Bašić (joined in October 2017 from the University of Bonn, doctorate in October 2018) Postdocs Dr Lukas Kiessling (joined in May 2019 from University of Stefania Bortolotti, PhD (joined in October 2017 from the Uni- Bonn, doctorate in February 2020) versity of Cologne, left in 2020 for the University of Bologna) Nathan Maddix (joined in November 2017 from Harvard Uni- Dr Ranveig Falch (joined in August 2020 from NHH Bergen) versity)

Dr Zwetelina Iliewa (joined in January 2018 from ZEW Mann- Sofia Monteiro (joined in October 2017 from the University of heim, left in 2020 for the University of Bonn) Cape Town)

Mustafa Kaba, PhD (joined in September 2020 from the Euro- Dr Matthias Praxmarer (joined in October 2017 from the Uni- pean University Institute (EUI) in Florence) versity of Cologne, doctorate in October 2018, left in 2021 for private sector) Dr Angelo Romano (psychology) (joined in October 2017 from the University of Amsterdam, left in December 2019 for Leiden Shambhavi Priyam (joined in October 2017 from the Poverty University) Action Lab in Bangalore)

Dr Sebastian Schneider (joined in December 2017 from the Sebastian Riedmiller (joined in October 2020 from the Univer- University of Göttingen) sity of Münster)

Dr Sebastian Tonke (joined in May 2019 from the University of Daniel Salicath (joined in October 2017 from the University of Cologne) San Francisco)

Stefan Schmidt (joined in October 2019 from the University of Bonn) Part-Time Researchers at the EEG Dr Anna Untertrifaller (joined in October 2017 from the Univer- Prof Dr Johannes Haushofer (Psychology, Princeton Universi- sity of Cologne; funded by the Diligentia Foundation, Cologne; ty) left in April 2019 for the University of Cologne)

Prof Dr Matthias Heinz (Management, University of Cologne) Dr Claudia Zoller (joined in October 2017 from the University of Cologne, doctorate in September 2018, left for Manage- Dr Florian Lindner (Economist, in the private sector) ment Center Innsbruck in September 2018)

Prof Dr Bettina Rockenbach (Economics, University of Cologne)

Dr Ali Seyhun Saral (Economics, part-time; full-time lab manager at MPI) (joined in January 2018 from Trento University)

38 C.II Experimental Economics

When I was interviewed for the position of director at the MPI of roughly 3,000 households in rural Bangladesh to study in October 2016, I outlined a potential research agenda if I the long-term development of economic preferences during were to become director at the MPI in Bonn. In my presenta- childhood and to examine how this formation is shaped and tion back then, I listed three broad domains in which I would influenced within households. The panel has been jointly set like to push the scientific boundaries in the years to come: up with Shyamal Chowdhury (University of Sydney) and Han- (i) understanding economic preferences and their formation nah Schildberg-Hörisch (University of Düsseldorf). The rural in childhood and within families and across generations, (ii) area of Bangladesh (for which the sample is roughly represen- applying experimental methods to questions that are rele- tative) allows us to collect data on the formation of economic vant for public policy, and (iii) helping people to make better preferences in a very poor, underdeveloped country. Despite decisions. the large interest in the economics profession to study how non-cognitive skills (like economic preferences) are formed In August 2017, I started working at the MPI and founded the (not the least because of the work of academics like James “Experimental Economics Group” (EEG), which was intend- Heckman and Armin Falk), there is a surprising lack of data ed to complement Christoph Engel’s “Behavioral Law and from poor countries. So far, most of the work on the formation Economics” group with respect to experimental methodology and intergenerational transmission of economic preferences and interest in applied research topics. From fall 2017 to early has originated in rich countries. However, non-cognitive skills 2018, I hired twelve members for the EEG, at that time four might be particularly important to raise poor people out of postdocs and eight doctoral students, from various previous poverty, which is why we believe that collecting data in poor places, including Harvard University, Sciences Po, the Universi- countries is an indispensable next step in this literature on the ty of Bonn and the University of Amsterdam. formation of such skills and preferences.

Of the eight doctoral students hired in 2017/18, four have Data collection (of experimental choices, personality traits, finished their PhDs in the meantime, and the other four are and demographic variables) is done by a professional survey expected to defend their respective theses (at the University of firm in Bangladesh (ECONS) under the main guidance (and Cologne) in 2021. Of the four postdocs hired in 2017/18, two training) by Shyamal Chowdhury. So far, we have been collect- have left for permanent positions at the University of Bolo- ing data on risk, time, and social preferences once a year (both gna (Bortolotti; tenured) and the University of Bonn (Iliewa; in 2018 and 2019), with intermittent data collection for addi- tenure-track). tional projects, and one large intervention study so far with children in primary schools. Due to the COVID-19 pandemic, While after the establishment of the EEG there was already the time schedule of collecting data has been somewhat one evaluation of the (former) scientific advisory council in interrupted by coming to a halt in 2020, but we are confident January 2018, the upcoming evaluation in January 2021 is to resume regular data collection within 2021. So far, working the first one in which the EEG has been operative for the past with this data from Bangladesh has led to several working three years. In some sense, the current evaluation still comes papers, some of which we consider as having the potential for a bit early for the EEG, because building up the EEG and its publication in top journals. research program has taken more time than I had anticipated. In particular, many of the large-scale projects that we have initiated – like building up a household panel in Bangladesh to A) Projects with Our Household Sample from study the formation of economic preferences within fami- Bangladesh lies, or setting up the infrastructure to run field interventions in health-related projects – are only now entering the stage The most advanced project from Bangladesh is Chowd- of yielding first results and papers (for which we have high hury, Sutter, and Zimmermann (2020b), which is a current hopes). I will describe this in more detail in the following when revise-and-resubmit at the Journal of Political Economy. This presenting the main research topics on which the EEG is work- paper (and the others reported in the following) does not yet ing and publishing. exploit the panel structure of the data (because we have had only two complete waves since 2018), but investigates with a subset of households how economic preferences of children 1. Economic Preferences and Their Formation and parents relate to each other, what determines a potential link between children and parents, and whether it is possible This is by far the most important research area of EEG, and it to classify whole families into clusters of economic prefer- is continuing to grow. One of the reasons for this is that one of ences. Based on data from 544 families (and 1,999 individ- the major advantages of working for the Max Planck Society uals) from rural Bangladesh, Chowdhury et al. (2020b) find is the generous and steady funding of long-term research a large degree of intergenerational persistence of economic projects. Using this opportunity, the EEG has set up a panel preferences. Both mothers’ and fathers’ risk, time, and social

39 C. Research Program

preferences are significantly (and largely to the same degree) behavior and outcomes, Breitkopf et al. (2020b) use a princi- positively correlated with their children’s economic preferenc- pal component analysis to classify parenting styles of fathers es, even when controlling for personality traits and socio- and mothers as positive or negative. Positive parenting scores economic background data. The authors discuss possible high on warm and monitoring parenting styles, and negative transmission channels for these relationships within families parenting on controlling styles. The authors find that positive and find indications that there is more than pure genetics at parenting is positively correlated with study attitudes, self-es- work. Moving beyond an individual-level analysis, this paper teem, and prosociality, while negative parenting is associated is the first to classify a whole family into one of two clusters, with bad outcomes in these dimensions.1 with either relatively patient, risk-tolerant, and pro-social members, or relatively impatient, risk-averse, and spiteful members. The availability of both parents and children to run experi- Socioeconomic background variables like household income ments with all household members in more than 150 villag- correlate with the cluster to which a family belongs. es in rural Bangladesh is the key asset that is exploited in Kiessling, Chowdhury, Schildberg-Hörisch, and Sutter (2020c). The following projects are either under review for the first They study whether and how parents interfere paternalistical- time, working papers, or close to becoming a working paper. ly in their children’s intertemporal decision-making, which is important for many lifetime outcomes. Based on experimental The first paper to exploit the very large number of house- data from over 2,000 members of 610 families, they find that holds that we have is Breitkopf, Chowdhury, Priyam, Schild- parents anticipate their children’s present bias and aim to mit- berg-Hörisch, and Sutter (2020a). This paper examines igate it. More than half of all parents forego money to override whether economic preferences of children can predict their their children’s choices with implications for the formation and behavior. While lots of the previous literature has reported intergenerational transmission of patience: parents willing to affirmative evidence for this question, Breitkopf et al. (2020a) interfere have more patient children, but they do not trans- exploit the fact that they have data on 4,282 siblings, aged 6 to mit their own time preferences to their children. Rather, the 16, which is why they can use household fixed effects (to keep transmission is driven by non-interfering parents. The latter the household environment invariant) for their estimations of introduces a completely novel twist into the literature on the the link between economic preferences and childhood out- intergenerational transmission of economic preferences. The comes. Strikingly, none of the previous papers in this strand paper, however, is also novel, as it develops an incentive-com- of literature has done this (nor has any been able to do this, patible method to study the degree of parental paternalism given their lack of substantial numbers of siblings). Breitkopf when interfering with their children’s preferences. et al. (2020a) combine incentivized measures of time, risk, and social preferences with comprehensive information on child In Chowdhury, Schildberg-Hörisch, Schneider, and Sutter behavior and family environment. Using standard cross-sec- (2020a), the authors exploit the advent of the COVID-19 pan- tional specifications, their results confirm the predictive demic to assess the effectiveness of an information campaign power of children’s preferences for behavior. However, when (as a type of a nudge) as well as of monetary incentives to estimating household fixed effects models that allow one to adhere to social distancing measures to prevent infection control for all characteristics that are shared by siblings, this and further spread of COVID-19 in rural Bangladesh. Chow- predictive power largely vanishes. Even when controlling for dhury et al. (2020a) measure health, knowledge and beliefs, an extraordinarily large set of household characteristics, the and the compliance with social distancing measures of more predictive power of children’s preferences for their behavior than 3,000 participants from 150 villages (with about 20-25 can only partly be restored when household fixed effects are households per village). The measurement was taken at a not used. These results suggest that measures of children’s comparatively early stage of the pandemic in Bangladesh (in preferences largely reflect a household environment that is April/May 2020) and then again in August 2020 after the inter- shared by siblings, implying that a household environment has vention had been run in May 2020. Preliminary results indicate a systematic effect on children’s economic preferences. that the intervention (both the one with providing information only and the one that adds monetary incentives) increases A companion paper – Breitkopf, Chowdhury, Priyam, Schild- the knowledge about the disease and appropriate measures berg-Hörisch, and Sutter (2020b) – investigates the influence to protect against it significantly. There seems to be a slightly of parenting styles on children’s outcomes. Based on recent positive effect on health outcomes as well, but an additional theoretical models on how parenting styles affect children’s

1 Kiessling (2020) studies how parenting styles of a representative sample of over 2,000 parents in the United States relate to their expectations about the returns from parenting and a good neighborhood. He shows that parents hold well-formed beliefs: they expect large returns to the warmth dimension of parenting, as well as to living in a good neighborhood. Interestingly, there is no socioeconomic gradient in perceived returns.

40 C.II Experimental Economics

round of data collection on health conditions needs to confirm B) Other Notable Projects on Economic this effect.2 Preferences and their Formation in Childhood and Adolescence Another ambitious project in Bangladesh is Schild- berg-Hörisch, Breitkopf, Chowdhury, Kamhöfer, and Sutter (2020). This paper analyzes the effects of a randomly Birth-Order and Peer Effects assigned, classroom-based social and emotional learning (SEL) program on the formation of self-control, prosociality, Related to the formation of economic preferences within fam- and self-esteem in children aged 7 to 11. Schildberg-Hörisch ilies, Detlefsen, Friedl, Lima de Miranda, Schmidt, and Sutter et al. (2020) compare the socio-emotional skills of children in (2018) study how birth order and siblings’ sex composition grades 2 to 5 in 68 treatment schools in rural Bangladesh, who affect risk, time, and social preferences. In their sample of 525 participated in the Lions Quest Skills for Growing program adolescents from Northern Germany, Detlefsen et al. (2018) for 28 weeks, with those of children in 67 control schools. find that second-born children are typically less patient, more Although socio-emotional skills are at least as important risk-tolerant, and more trusting. However, siblings’ sex com- as cognitive skills for life outcomes, causal evidence on the position interacts importantly with birth-order effects. Sec- formation of those skills is still rare, and this paper adds one ond-born children only take more risks with same-sex siblings. large-scale study on it. The randomized controlled trial (RCT), For trust and trustworthiness, birth-order effects are larger comprising of about 3,500 children and their families, provides with mixed-sex siblings than in the single-sex case. Only for novel insights into the formation of three crucial socio-emo- patience does the composition of the siblings’ sex not matter. tional skills – self-control, prosociality, and self-esteem. Moreover, by comparing the effects of the same investment Extending the factors influencing the economic behavior of (an age-adjusted, but otherwise identical, intervention) in children and adolescents beyond the core family, Kiessling has elementary school grades 2 to 5, Schildberg-Hörisch et al. studied several aspects of peer effects. Kiessling, Radbruch, (2020) are able to identify sensitive periods in the formation of and Schaube (2019c) study the causal effect of being able to socio-emotional skills between the ages of 7 to 11. Despite its self-select peers on performance, and decompose differences obvious importance for an efficient targeting of investments, into their possible causes. Kiessling et al. (2019c) report that empirical evidence on sensitive periods in the formation of self-selection of peers improves performance. They show that children’s socio-emotional skills has been lacking. This paper self-selection allows for autonomy over the peer assignment, shows that the treatment increases self-control and proso- which in turn has a direct effect on performance through ciality in elementary-school children. Self-control is raised increased motivation. In a companion paper, Kiessling, Rad- especially among second-graders, the youngest cohort under bruch, and Schaube (2019b) analyze which factors – pro- scrutiny, whereas prosociality increases for both younger ductivity, personality, or friendship ties – drive peer-selection and older elementary-school children. There is no effect on processes. They show that, even conditional on friendship ties, self-esteem. Taken together, the results suggest that the Lions there exists a strong homophily in productivity and person- Quest program improves young children’s self-control and ality, which explains several findings in the literature on peer prosociality. effects.

Several of these papers are promising for top publications. The Roots of Human Cooperation and Egalitarian Norms in In 2021, we are going to collect the third wave of data for our Childhood panel, and will then begin writing the first large-scale paper on the intertemporal stability (or the intertemporal development) EEG members have several projects on the roots and deter- of economic preferences – investigating risk, time, and social minants of human cooperation in childhood, as this is closely preferences – within families. While there is some literature on related to another focus of the EEG on the determinants of the intertemporal stability of adults’ preferences, we will be the cooperation in adults (see subsection C below). first to assess such potential stability in childhood and adolescence, and to investigate also how the household environment In a large-scale experiment with more than 1,000 kindergarten affects the intertemporal stability. children, aged 3 to 6 years, from Tyrol (Austria), Bašić, Bindra, Glätzle-Rützler, Romano, Sutter, and Zoller (2020) study the ontogeny of cooperation in young children. Bašić et al. (2020) conducted an iterated prisoner’s dilemma game and imple-

2 Related to COVID-19 (but outside of Bangladesh), Cappelen, Falch, Sörensen, and Tungodden (2020b) examine with a representative sample of 8,000 Americans how the COVID-19 crisis affects people’s solidarity and fairness, finding that the crisis makes people more concerned with society’s problems than their own, but also increasing inequality acceptance. In Christoph Engel’s group, there are also COVID-19-related projects: see, e.g., O’Hara and Rahal (2020).

41 C. Research Program

mented four between-subject treatments that allow them to parental attitudes. The latter adds to the literature on the inter- investigate the behavioral effects of three evolutionary pillars generational transmission of economic preferences. of cooperation: direct reciprocity, indirect reciprocity, and third-party punishment (all of them pitched against a control Formation of Risk Preferences condition with perfect-stranger matching, without any opportunities for reciprocity or third-party punishment). They find It is well known that macroeconomic shocks in the past influ- that in this young age cohort only third-party punishment is ence economic decisions in the present. However, it is unclear an effective means to increase cooperation in young children, how small-scale events affect economic decision-making, and while neither direct nor indirect reciprocity have any positive whether the actual outcomes of such insignificant events or impact in comparison to a control condition. This is a striking the memories thereof are more important for the formation finding, as it indicates that reciprocity – a means typically of economic preferences. Based on a model of reinforcement found in adults to increase cooperation levels – must develop learning and selective memory, Angerer, Dutcher, Glätzle-Rüt- only after early childhood to affect cooperation rates. Much to zler, Lergetporer, and Sutter (2020) present a large-scale the contrary, third-party punishment already enhances cooper- experiment to study how randomly determined outcomes of a ation very strongly in 3-year olds, thus shedding new light on lottery choice affect the formation of risk preferences by again the roots of human cooperation. studying risk-taking almost a year after the first lottery choice. In a randomized experiment with 743 subjects, Angerer et al. Sutter and Untertrifaller (2020) study the determinants of (2020) find that subjects who won the first lottery take signifi- cooperation by letting 328 children from South Tyrol (Italy), cantly more risks in the second one, even when subjects do aged 4-5, and their parents play an experimental prisoner’s not remember the previous outcome. Thus, small-scale events dilemma game. They examine whether children’s cooperation have an influence on preference formation. Finally, memories depends on symmetric payoffs of mutual cooperation, and have no effects on subsequent choices. Yet, good outcomes how it is related to the parental socioeconomic background are more likely to be remembered correctly than bad out- and the parents’ own cooperation behavior. Sutter and Unter- comes, and memories of bad outcomes misremembered as trifaller find that asymmetric payoffs do not hinder cooper- good. This means that risk preferences are slowly built up in ation. Children cooperate more often when parents have a childhood, but that they also follow some path dependency, higher level of education. Parents’ and children’s cooperation contingent on small-scale outcomes. In Karlsson Linnér et al. rates are positively aligned. Overall, these findings support the (2019), we study the genetic determinants of risk aversion, notion of a socioeconomic gradient of prosociality. thus leaving out any kind of reinforcement learning or environmental factors that might affect risk preferences. Bašić, Falk, and Kosse (2020) investigate the development of egalitarian norm enforcement in childhood and adolescence. The importance of risk attitudes for field behavior is inves- Running an experiment with 635 children and adolescents tigated in Schneider and Sutter (2020).3 This paper uses a from Croatia, they observe that children start enforcing the novel method to elicit and measure higher-order risk pref- egalitarian norm (in a sharing game) at the age of 11-12, and erences (prudence and temperance) in an experiment with that they become more generous at the same time as the 658 adolescents from Germany. In line with theoretical egalitarian norm enforcement emerges. predictions, Schneider and Sutter (2020) find that higher-order risk preferences – particularly prudence – are strongly Barron, Harmgart, Huck, Schneider, and Sutter (2020) measure related to adolescents’ field behavior, including their financial the prevalence of discrimination between Jordanian host and decision-making, prevention effort, and health status. Most Syrian refugee children attending school in Jordan. Using a importantly, Schneider and Sutter (2020) show that dropping simple sharing experiment and running incentive experiments prudence and temperance from the analysis of students’ field with 456 children, Barron et al. (2020) find only little discrim- behavior would yield largely misleading conclusions about the ination. Among the Jordanian children, however, they see relation of risk aversion to these domains of field behavior. that those who descended from Palestinian refugees do not Against this background, many contradicting results of previ- discriminate at all, suggesting that a family history of refugee ous research on the role of risk aversion for field behavior can status can generate solidarity with new refugees. They also be reconciled in light of the role of higher-order risk preferenc- show that parents’ narratives about the refugee crisis are es (like prudence and temperance). correlated with the degree of discrimination, suggesting that discriminatory preferences are being transmitted through It is worth noting that the EEG’s work on risk preferences has several very interesting complements in Christoph Engel’s

3 Sebastian Schneider from EEG has also a paper on higher order risk preferences and their relation to field behavior in Colombia (see Schnei- der, Ibáñez, and Riener, 2020). Moreover, he also has a methods paper on the validity and generalizability of field experiments (see Riener, Schneider, and Wagner, 2020).

42 C.II Experimental Economics

group, for example in the paper by Engel, Fedorets, and Gorel- several claims of Joe Henrich, for instance, is the fact that kina (2020) on risk tolerance of household members in the the extent of national parochialism is practically independent German Socio-Economic Panel (for further related papers, see of the level of wealth, rule of law, exposure to world religions, the section “Risk and Uncertainty” in Christoph Engel’s report relational mobility, pathogen stress, and distance to common on his group). ancestry. Romano, Sutter, Liu, and Balliet (2020c) then showed that political ideology is linked to cooperation within and Formation of Time Preferences across national boundaries, with liberals being much more likely to cooperate even with strangers than conservatives are Sutter, Angerer, Glätzle-Rützler, and Lergetporer (2018) study in the sample of 42 nations. how language relates to intertemporal preferences. They examine differences in intertemporal choices across language While Romano et al. (2020b, 2020c) studied cooperation groups in an incentivized experiment with 1,154 children in across nations, Romano, Bortolotti, Hofmann, Praxmarer, and a bilingual province, i.e., in South Tyrol. The sample consists Sutter (2020a) examined cooperation across different gener- of 86% of all primary-school kids in Meran/Merano, where ations of 359 adult people in Austria. Romano et al. (2020a) about half of the 38,000 inhabitants speak German, and the find that participants cooperate more with older generations other half Italian, while both language groups live very close than with younger generations. This pattern is particularly to each other. Sutter et al. (2018) find that German-speaking strong in the youngest generation. In addition, the data reveal primary-school children are about 16 percentage points more that age is positively correlated with generosity and that the likely than Italian-speaking children to delay gratification in oldest generation shows higher levels of unconditional coop- an intertemporal choice experiment. The difference remains eration when they are matched with the youngest cohort. The significant in several robustness checks and when controlling latter can be interpreted as an attempt to “teach” cooperation for a broad range of factors, including risk attitudes, IQ, family to younger generations. background, and area of residence. Hence, they are able to show that language-group affiliation, which is often used as Bigoni, Bortolotti, Casari, and Gambetta (2019) address a proxy for culture, already plays an important role in shaping the notorious development gap between the North and the economic preferences early in life. Related work in Christoph South of Italy by arguing that differences in cooperation rates Engel’s group is Albrecht and Schubert (2020). between North and South might have contributed significantly to this gap. They ran experiments with more than 400 Italians A First Survey on the Economic Behavior of Children and from all over the country and find that Northerners and South- Adolescents erners share the same prosocial preferences, but they differ both in their belief about cooperativeness and in the aversion In 2019, two members of the EEG, Matthias Sutter and Claudia to social risk, with more pessimistic views and attitudes in the Zoller, published (together with Daniela Glätzle-Rützler) a first South. Conditional cooperation might then explain different survey about the rapidly growing literature on the economic levels of actual cooperation, based on different expectations behavior of children and adolescents and its development about the interaction partners’ level of cooperation. over time (Sutter, Zoller, and Glätzle-Rützler, 2019). So far, the survey has been well-cited and will serve as a good starting Fehr and Sutter (2019) investigate whether mutual coopera- point for scholars around the world to push the frontier in this tion in trust games can be enhanced through gossiping, i.e., area of research ever more outward. an opportunity of people to share informal information about interaction partners in a trust game. In fact, Fehr and Sutter (2019) find that this form of gossip increases trust and trust- C) The Determinants of Cooperation among worthiness compared to a situation without a third party that Adults can gossip. However, a large part of this increase is due to the mere observation of trustees through third parties, not the In a large-scale project around the globe – covering 42 nations content of the gossip. As far as the analysis of text (i.e., gos- and more than 18,000 participants, members of the EEG (in sip) is concerned, this project is related to the work on natural particular, the psychologist Angelo Romano) took the lead in language-processing methods in Christoph Engel’s group (see, an international project on the extent of national parochialism e.g., Hausladen, Schubert, and Ash, 2020). and the influence of political ideology on this extent. In Roma- no, Sutter, Liu, Yamagishi, and Balliet (2020b), they showed that national parochialism – the tendency to cooperate more D) Social Norms and Fairness Concerns with members of one’s own nation, compared to strangers from abroad – is a ubiquitous phenomenon around the globe. Bašić and Verrina (2020) – as an example of joint co-author- A particularly striking finding, which is incompatible with ship across both main research groups – develop a utility

43 C. Research Program

framework on the influence of personal and social norms trades off resources between quick and slow learners. She on economic behavior. They then put the model to a test in finds that they give priority to slow learners, assigning, on a series of games (including dictator and ultimatum games average, two thirds of the educational resources to this group. and a third-party punishment game). They show that personal Using treatment manipulations, it is found that both cost norms are inherently distinct from social norms across the efficiency and the relative motivations of the learners causally games, and that they are highly predictive of individual behav- affect the resource allocations, but that the priority is given to ior. In fact, they are complementary to social norms in predict- slow learners remains. The findings provide important insights ing behavior, as a model with both personal and social norms for the present policy debate on how to distribute educational outperforms a model with only one of the two norms. This is resources in society. a first contribution that elicits both social and personal norms and relates them to behavior they govern, showing that the Concerning the importance of (social) norms and fairness two norms are not identical, but are both drivers of behavior. for economic behavior, it is noteworthy that there are several related projects ongoing in Christoph Engel’s group (see, e.g., Heinz, Jeworrek, Mertins, Schumacher, und Sutter (2020) Engel, Kube, and Kurschilgen, 2020, and Adra, Kirchkamp, study the impact of fairness norms on productivity. They set Sterba, and Ungwang, 2020). up a call center in a German town and examine how worker productivity is affected when employers act adversely towards their co-workers. In their main treatment, Heinz et al. (2020) E) Gender Differences lay off some workers before the last shift in the call center. This layoff is communicated as an unfair (i.e., arbitrary) act. A long-run research interest has been the examination of The remaining employees perceive this layoff as an infraction gender differences in competitiveness. Balafoutas and Sutter of fairness norms and react by reducing their productivity by (2019) examine how uncertainty about the number of winners 12 percent. These results suggest that the price for unfair in a tournament affects gender differences in the willingness employer behavior goes well beyond the potential tit-for-tat to compete. While it is hard to measure how this uncertainty of directly affected workers, but even affects employers who affects work performance and willingness to compete in the cannot be (by design of the field experiment) be affected at all field, it can be studied in a controlled lab experiment. Balafou- by the unfair layoffs. tas and Sutter (2019) present an experiment where subjects can compete against each other, but the number of winners is Cappelen, Falch, Huang, and Tungodden (2020a) look at either uncertain (but with known probabilities) or ambiguous fairness from the perspective of how adults handle distrib- (with unknown probabilities for different numbers of winners). utive conflicts between children across different societies. The authors find that uncertainty and ambiguity induce a Using a novel experimental design with nearly 10,000 adults significant increase in the performance of men, while there is and children, Cappelen et al. (2020a) compare how adults in no effect on women. Men also increase their willingness to two societies characterized by very different levels of income compete in the presence of ambiguity. Overall, both effects inequality, China (Shanghai) and Norway, make real distribu- contribute to men winning the tournament significantly more tive choices in situations involving two children of the same often than women under uncertainty and ambiguity. These age. They document a large difference in the adults’ accep- findings suggest that laboratory studies with known numbers tance of inequality among children in the two societies: the of tournament winners may have measured a lower bound of adults in China implement more than twice as much income the gender differences in the willingness to compete. inequality among children compared to the adults in Norway. The authors provide survey evidence indicating that the under- Balafoutas, Fornwagner, and Sutter (2018) report experimental lying mechanism is that the adults in China, to a much greater evidence that a simple and practically costless tool – priming degree than the adults in Norway, consider such inequality subjects with power – can close the gender gap in competi- to be fair. These findings suggest that social learning may tiveness. While in a neutral as well as in a low-power priming be a powerful mechanism behind international differences in situation men are much more likely than women to choose inequality acceptance. competition, this gap vanishes when subjects are primed with a high-power situation. Balafoutas et al. (2018) show that Falch (2020) examines fairness concerns with respect to priming with high power makes competition-entry decisions allocating resources to quick and slow learners in school. better calibrated to objective winning probabilities and reduc- Investing in human capital is of great importance to society, es the level of risk tolerance among male participants, which but raises major distributional concerns. Falch (2020) pro- can help explain why it leads to a closing down of the gender vides the first set of evidence on people’s preferences for the gap in competitiveness. distribution of educational resources in society. She examines how a general population sample of over 2,000 Americans

44 C.II Experimental Economics

Kiessling, Pinger, Seegers, and Bergerhoff (2019a) look at and agricultural productivity. Yet, two thirds of the world’s pop- gender differences in wage expectations. Based on a sample ulation already experience severe water scarcity for at least of over 15,000 students in Germany, they document a large one month a year. Threats to sustainable water management gender gap in wage expectations, amounting to approximately from the consumer side are the no-payment of water utility 500,000 EUR over the life cycle and resembling actual wage bills and overconsumption. Rockenbach, Weiss, and Tonke differences. Most strikingly, they show that these different (2020) and Tonke (2020) address both threats. expectations go hand in hand with different negotiation strategies of men and women, thus contributing to enormous Rockenbach et al. (2020) cooperate with the public water differences in expected lifetime earnings. utility of Namibia and implement interventions to reduce non-payments. They first report that a large fraction of cus- Cappelen, Falch, and Tungodden (2019) examine gender tomers seems to be willing to pay, but neither receives the differences with regard to the performance of boys and girls invoice properly, nor understands its content. Rockenbach et in education. In highly developed countries, it is more and al. (2020) address these informational frictions by using sim- more the case that boys fall behind girls in achievements and plified text messages and applying psychological commitment performance. Cappelen et al. (2019) look at this ‘boy crisis’ techniques to narrow the gap between the customers’ willing- by asking whether people interpret inequalities differently ness to pay and actual payments. In fact, payments increase depending on whether males or females are lagging behind. by 30% to 61%, making the interventions highly cost-effective. They study this question in a novel large-scale distributive experiment involving more than 5,000 Americans. The results Tonke (2020) uses the same collaboration with the public provide strong evidence of a gender bias against low-perform- water utility in Namibia to encourage water conservation ing males, particularly among female participants. A large during a drought. Providing mass-targeted conservation strat- set of additional treatments establishes that the gender bias egies via text message decreases consumption by 5.3 per- among female participants reflects statistical fairness dis- cent. Additional treatments encouraging individuals to develop crimination. The study provides new evidence on the nature of their own strategies are ineffective and rule out alternative discrimination and on how males falling behind are perceived explanations, such as reminders, awareness of water scarcity, by society. or being asked to reduce consumption.

Fang, Götte, Rockenbach, Sutter, Tiefenbeck, Schoeb, and 2. Experimental Methods and Public Policy Staake (2020) examine how to reduce water consumption in a very energy-intensive activity, i.e., showering. Working with When I was interviewed for the position of director at the occupants of single apartments in German student dorms, MPI, I had not yet started to apply experimental methods to they investigate the savings potential of real-time feedback important questions in public policy, but promised to do so if of water consumption (through a shower-meter that shows given the job. As a consequence, over the past three years I instantaneous usage) and of home energy reports (which illus- have hired EEG members with a strong research portfolio on trate the environmental consequences of energy consumption applied questions, but have also myself started a series of through showering). Based on a model of barrier multiplicity larger projects, some of which have become working papers as an obstacle to energy conservation, Fang et al. (2020) can in 2020, although none of these has yet been accepted for show that putting both interventions on top of each other gen- publication. However, I do believe that the projects in this erates tremendous additional savings of about 50% of what research area are very promising scientifically and important can be achieved with real-time feedback alone. This showcas- for society, and thus I would like to devote even more resources how barrier multiplicity can generate complementarities in es into this area in the coming years.4 behavioral interventions.

An ongoing project in India by Priyam, Salicath, and Sutter (in A) Environment and Health progress) addresses how the contamination of groundwater through arsenic can be reduced. As of today, arsenic-contami- The lack of access to purified water sources leads to water- nated groundwater is consumed by approximately 100 million borne diseases like diarrhea and typhoid fever, infant mortality, people worldwide and has severe health consequences. Using and inferior educational attainment. Affordable and depend- an RCT conducted in 150 Indian villages and more than 2,000 able access to water is also a crucial input factor for industrial households, Priyam et al. (in progress) test the effectiveness

4 One indication of this is the very recent hiring of Mustafa Kaba who investigates, in his job market paper (Kaba 2020), the electoral effects of distributive spending in an interesting field setting in Turkey, where the government has opened a food-subsidy program in government-run shops. By leveraging the geographical variation in proximity of voters to these shops, the author can estimate the effects of such distributive spending on voter turnout and incumbent support, conditional on the incumbent’s party affiliation in a given voter district.

45 C. Research Program

of an information-based intervention, focused on spreading field experiment, Monteiro, Sutter, Wiesen, Larmuth, and Kroff awareness about arsenic in the groundwater and mitigation (in progress) test the impact of a wearable technology called techniques. Initial results with 1,200 households – the remain- Continuous Glucose Monitoring (CGM) against a control group ing households could not be visited after the intervention to that receives the standard of care for diabetes. Real-time measure the arsenic level of their water because COVID-19 information on personal glucose levels allows the wearer to broke out and made it impossible to continue data collection – fine-tune his or her diet, but may not be sufficient to overcome are extremely promising, as they show that households in the cognitive barriers such as present bias that might prevent treatment conditions have significantly lower arsenic levels behavioral changes. Therefore, in a second treatment, Mon- than the households in the control group. The arsenic levels of teiro et al. (in progress) add online health coaching to help the water are measured with professional test kits. A prelim- patients identify their goals, what it would mean to achieve inary analysis based on 1,200 households also shows that them, the obstacles in the way, and plans to overcome them. members of treated households have significantly improved This RCT has been pre-registered, and data collection in South mental-health conditions (with mental problems being one of Africa will commence once the COVID-19 situation allows it. the main negative health externalities of arsenic-contaminated water). Our plan is to run a third wave of arsenic measuring in all 2,000 households once the COVID-19 situation allows it, so B) Financial Literacy and Finance in General as to check carefully whether the preliminary results persist. Financial literacy is generally understood as an individual’s Related to mental health, Kiessling and Norris (2020) study capability to handle financial aspects of everyday life and to how students’ relative ranks in their school cohort affect their make meaningful and informed decisions regarding invest- mental well-being both in the short as well as in the long run. ments, savings, and consumption. However, the level of finan- Based on more than 18,000 subjects in the U.S., they show cial literacy is fairly limited across the globe, and this limited that having a higher rank in school improves not only the stu- knowledge has been shown to lead to a series of disadvan- dents’ immediate mental health, but these effects last for at tageous financial decisions. Sutter, Weyland, Untertrifaller, least 14 years and carry over to economic outcomes in adult- and Froitzheim (2020) present the results of a randomized hood. The findings of their study thus provide evidence how controlled trial in schools to study how teaching financial liter- the school environment can have long-lasting consequences acy affects the risk and time preferences of adolescents. The for the well-being (and professional success) of individuals. starting point of this RCT is the hypothesis that the beneficial effects of financial literacy work through economic preferenc- Turning to physiological health, Charness, Cobo-Reyes, Eyster, es, a hypothesis untested to this point. Following more than Katz, Sánchez, and Sutter (2020) run an RCT in Spanish prima- 600 German adolescents, aged 16 years on average, over ry schools with 282 children, aged 9 to 10. This field experi- about half a year, Sutter et al. (2020) provide causal evidence ment intends to study the effects of non-monetary incentives that teaching financial literacy has significant short-term and for children to make healthier food choices at school. Pre- longer-term effects on risk and time preferences. Compared vious interventions have typically paid participants for their to two different control treatments, they find that teaching participation, but this may often not be feasible. Charness et financial literacy makes subjects more patient, less present-bi- al. (2020) introduce a system in which food items are graded ased, and slightly more risk-averse. These effects on econom- based on their nutritional value, involving parents or classic preferences – on top of improving financial literacy itself mates as change agents by providing them with information through the intervention – provide a better understanding of regarding the food choices of their children or friends. They why financial literacy has been shown to correlate systemati- find parental involvement in the decision process to be par- cally with better financial decisions in previous studies. ticularly beneficial in boosting healthy food choices, with very strong results that persist even months after the intervention. In a related project, Maddix (2019) investigates, with a representative sample of U.S. households, how individuals vary Another health-related project on how to improve eating habits with respect to their approval for public policies that make use of patients diagnosed with type-2 diabetes has been delayed of financial nudges, such as credit-card spending, automatic because of COVID-19, but it is worth mentioning nevertheless. enrollments in financial programs, or financial education at the The burden of non-communicable diseases such as diabetes workplace. This is one of the first pieces of evidence on how is a growing global problem, not only for patients and families, people perceive nudges in financial decision-making. but also for health-insurance providers and the wider economy. These diseases are largely lifestyle-driven, for example by A paper by Glaser, Iliewa, and Weber (2019) is also related to what people eat and drink and how much (or little) they exer- financial literacy. They use a series of experimental studies to cise. Health-related behavior is difficult to shift, and measuring document and explain the occurrence of two specific viola- and tracking behavior in the field is often a challenge. In a tions of the invariance assumptions of normative decision

46 C.II Experimental Economics

theory. First, they show that presenting subjects past price include health care service, repair services, and legal ser- charts induces different expectations from showing them vices). past return charts, even though the information is identical. Second, Glaser et al. (2019) show that asking subjects to Kerschbamer, Neururer, and Sutter (2019) study whether con- forecast prices and asking them to forecast returns results sumers benefit from accessing online information about their in different expectations. Asking subjects to forecast returns needs before purchasing credence goods or about previous as opposed to prices results in more optimistic expectations, consumers’ experience with particular sellers. Based on a whereas showing subjects return charts as opposed to price field experiment in the German market for computer repairs, charts results in lower expectations. Interestingly, professional Kerschbamer et al. (2019) find that gaining knowledge about experience in the finance industry is not a useful remedy to one’s needs and revealing it to sellers is a costly mistake, these biases, but cognitive reflection mitigates the impact of since seemingly better-informed customers pay higher prices, format changes. on average, rather than lower prices. By contrast, accessing online ratings of sellers helps identifying cheaper shops, The financial industry has been struggling with widespread in particular on rating platforms that filter out trustworthy misconduct and public mistrust. Gill, Heinz, Schumacher, and reviews. Consumers can thus benefit from information provid- Sutter (2020) argue that this stems largely from the selection ed in the worldwide web.5 of subjects with little trustworthiness into the financial industry. In a long-term project, Gill et al. (2020) identify the trustworthi- Bindra, Kerschbamer, Neururer, and Sutter (2020) start ness of business and economics students during college days, from the observation that, in theory, consumers can protect and follow up on their job placement after graduation (seven themselves, in credence-goods markets, from maltreatment years after their experimental choices in a trust game during through sellers by asking for second opinions from other their study times). Students who want to start their careers in sellers. Yet, empirical evidence whether this is a successful finance are substantially less trustworthy. Most importantly, strategy is scarce. Bindra et al. (2020) present a natural field actual job placements several years later confirm this associa- experiment in the market for computer repairs, finding that tion. The financial industry does not screen out less trustworthy revealing a second opinion from another expert to the seller subjects. If anything, the opposite seems to be the case, which neither increases the rate of correct repairs nor decreases the may create a serious challenge to rebuild trust in this industry. average repair price. Hence, revealing second opinions is a costly mistake, but collecting them is not as the authors show.

3. Helping People to Make Better Decisions Balafoutas, Fornwagner, Kerschbamer, Sutter, and Tverdostup (2020) present a theoretical model and an experimental test The final research area described here has a much narrower of a credence-goods market that considers both diagnostic meaning than what the section title may suggest. Actually, uncertainty of sellers and the effects of insurance on the it brings to the MPI two of my major research areas over the part of consumers. Both in theory and in the experiment, past ten years or so, namely research on credence-goods mar- diagnostic uncertainty decreases the rate of efficient service kets and on team decision-making. With the stronger empha- provision and leads to less trade, thus reducing efficiency. In sis on research with children and families and a new focus on theory, insurance also decreases the rate of efficient service applied public-policy issues, these two former prime research provision, but at the same time it also increases the volume areas of mine have somewhat lost prominence, but they are of trade, leading to an ambiguous net effect on welfare. In the still part of what the EEG is involved in. experiment, the net effect of insurance coverage on efficiency turns out to be negative. This is partly driven by an important interaction effect: if consumers are insured, experts invest A) Boosting Consumer Knowledge and Con- less in diagnostic precision. This constitutes a hitherto over- sumer Protection in Credence-Goods looked downside of insurance coverage in such markets. Markets B) Making Decisions in Teams Credence-goods markets are characterized by large informational asymmetries between consumers and expert sellers. Many decisions are taken in teams, such as executive boards, These asymmetries allow experts to exploit consumers, search committees, or evaluation committees. Lots of calling for an examination of how consumers can make previous research has shown that team decisions are often well-informed decisions on such markets (which, for example, closer to standard game-theoretic predictions than individual

5 This paper is related to an information search paper in the groups of Christoph Engel and Fabian Winter. See Hillenbrand and Hippel (2020).

47 C. Research Program

decisions (see a recent survey of the literature by Kocher, Research of Our Part-Time Members Praxmarer, and Sutter, 2020). Whether or not this leads to “better” decisions in teams does depend on the definition of The EEG currently has five part-time members (roughly on 10% “better” (for instance, with respect to individual payoffs or contracts that request regular visits to the MPI, exchange with collective welfare) and on the type of game (whether standard EEG members, participation in seminars (even if remote), and game-theoretic play leads to more or less efficient outcomes listing affiliation to the MPI in publications). We have been than non-standard play). benefitting tremendously from the engagement of Johannes Haushofer (Princeton University), Matthias Heinz (University Cooper and Sutter (2018) have shown that the mechanism of Cologne), Florian Lindner (in the private sector; the MPI as used for assigning roles within teams affects team perfor- the only academic affiliation), Bettina Rockenbach (University mance as well. They let subjects play the takeover game in of Cologne), and Ali Seyhun Saral (full-time lab manager at the buyer–seller teams. Understanding optimal play is demanding MPI, and part-time member of the EEG). All five have contrib- for buyers and trivial for sellers, so teams should perform uted plenty of time into giving feedback on projects of junior better if the buyer is the abler teammate. When teammates members, on attending and giving seminars, and also on joint are allowed jointly to choose their roles, abler teammates tend projects. In this final section on research output, I would like to become buyers, but this is more than offset by disruptions to highlight one project of those three part-time members who to the learning process. Cooper and Sutter (2018) examine have so far not been involved in the joint projects discussed two potential sources for the latter effect and find that endog- above (see Fang et al., 2020, for a joint project of Bettina enous role assignment has a negative psychological and Rockenbach’s with members of the EEG, and Gill et al., 2020, emotional effect on buyers. or Heinz et al., 2020, for joint projects of Matthias Heinz with EEG-members; see further papers of part-time members in the Buffat, Praxmarer, and Sutter (2019) examine whether teams references). – as individuals have been shown – assign an intrinsic value to having the right to make a decision. This intrinsic value is Haushofer and Metcalf (2020) have provided a most timely different from the instrumental value (because the latter deter- Science contribution on which interventions work best in a mines outcomes), and can thus be considered a distortion pandemic, referring to the current COVID-19 pandemic. In their of decision-making. While Buffat et al. (2019) find no differ- work, they explain why randomized controlled trials can be ences between individuals and teams in the aggregate, they ethically justified (a position that is sometimes disputed), how uncover an important heterogeneity within teams. Teams with data collection should be organized, and why one should not a smooth decision-making process have much lower intrin- ignore potential spillover effects from one region to another. In sic values of decision rights than individuals, often not even a sense, this paper provides a guideline for politicians and sci- significantly different from zero. Yet, teams with conflicts in entists alike how to use and apply empirical methods to cope reaching a decision have very high intrinsic values of decision with one of the greatest crisis in recent human history. rights, thus distorting decisions considerably. Hence, the team decision-making process is of significant importance for the Kirchler, Lindner, and Weitzel (2018) investigate the effects decision-making quality in teams.6 of rank incentives on risks taken by financial professionals. The authors find that both rank and tournament incentives Glätzle-Rützler, Lergetporer, and Sutter (2019) study whether increase risk-taking among underperforming financial team decision-making can alleviate impatience and present professionals. This rank effect is robust to the experimen- bias in intertemporal decisions. More specifically, they exam- tal frame (investment frame vs. abstract frame), to payoff ine what happens to collective decisions when there is internal consequences (own return vs. family return), to social identity conflict about the tradeoff between present and future, a priming (private identity vs. professional identity), and to the question that has not been thoroughly investigated so far. professionals’ gender (no gender differences among profes- In their laboratory experiment, they implement exogenously sionals). The effect can contribute to a better understanding heterogeneous payoffs from waiting on intertemporal choices. of excessive risk-taking on the part of financial professionals They find that three-person groups behave more patiently than in times of financial distress. This excessive risk-taking may individuals. This effect is generated from the presence of at have undermined trust in the financial industry. Yet, there least one group member who has a high payoff from waiting, might also have been endogenous selection going on, as the implying that impatient team members can be convinced to next project shows. take patient choices when they have at least one patient member in their team.

6 An observational study on penalty shootouts in soccer confirms the value of decision-making rights. Kassis, Schmidt, Schreyer, and Sutter (2020) show that having the right to determine the sequence of a penalty shootout (which is determined by the toss of a coin before the shootout) yields roughly a 50% higher likelihood of winning such a shootout.

48 C.II Experimental Economics

Andreozzi, Ploner, and Saral (2020) investigate conditional goods markets. Working Papers in Economics and Statistics cooperation. Cooperation based on conditional cooperation 2020-21. University of Innsbruck. yields an unfolding of free-riding in repeated interactions. Balafoutas, L., Fornwagner, H., Sutter, M. (2018). Closing the gender In their study, Andreozzi et al. (2020) explore the possibility gap in competitiveness through priming. Nature Communications, 9, 4359. that the type of reciprocally cooperative choices observed in experiments may themselves evolve over time. They exam- Balafoutas, L., Sutter, M. (2019). How uncertainty and ambiguity in ine this by observing the evolution of the subjects’ choices tournaments affect gender differences in competitive behavior. European Economic Review, 118, 1-13. in an anonymously repeated social dilemma. Their results show that a significant fraction of reciprocally cooperative Barron, K., Harmgart, H., Huck, S., Schneider, S. O. and Sutter, M. (2020). Discrimination, narratives and family history: An experi- subjects become unconditional defectors in the course of the ment with Jordanian host and Syrian refugee children. IZA Discus- experiment, while the reverse is rarely observed. This shift in sion Paper 13337 and MPI Discussion Paper 2020/13, patterns of reciprocity (or non-reciprocity) may contribute to a Revise and resubmit: Review of Economics and Statistics. marked decline of cooperation in repeated interaction. Bašić, Z., Bindra, C., Glätzle-Rützler, D., Romano, A., Sutter, M., Zoller, C. (2020). The roots of human cooperation. Working Paper MPI Bonn. A Short Note on Media Coverage and Policy Bašić, Z., Falk, A. and Kosse, F. (2020). The development of egalitarian norm enforcement in childhood and adolescence. Journal of Consulting as a Conclusion Economic Behavior & Organization, 179, 667-680. While the EEG strives to provide excellent research, we are Bašić, Z., Verrina, E. (2020). Social norms, personal norms and image also committed to communicating our research to the general concerns. MPI Discussion Paper 2020/25. public. We have set up a Twitter account for the EEG (see Bigoni, M., Bortolotti, S., Casari, M., Gambetta, D. (2019). At the root of https://twitter.com/eeg_mpi), and we organize an annual the North-South cooperation gap in Italy: Preferences or beliefs? Economic Journal, 129, 1139-1152. workshop with the Cologne School of Journalism (see https:// koelnerjournalistenschule.de/) to improve our communica- Bindra. C., Kerschbamer, R., Neururer, D., Sutter, M. (2020). Reveal it tion skills and to disseminate our work into the public. These or conceal it: On the value of second opinions in low-entry barrier credence goods markets. IZA Discussion Paper 13344. efforts have helped us to receive widespread media coverage, in particular in the German-speaking area, including appear- Breitkopf, L., Chowdhury, S., Priyam, S., Schildberg-Hörisch, H., Sutter, M. (2020a). Do economic preferences of children predict ances on TV (on 3sat, ARD Alpha, ORF Vorarlberg, ORF Tirol), behavior? Evidence from siblings comparisons. DICE Discussion online interviews (e.g., ZDF online, ZEIT online, Welt online, Paper 342, University of Duesseldorf. Wirtschaftswoche), interviews in print media (e.g., ZEIT, FAZ, Breitkopf, L., Chowdhury, S., Priyam, S., Schildberg-Hörisch, H., Sutter, Welt, Spiegel), and on the radio network (e.g., Deutschland- M. (2020b). Parenting styles and life outcomes of children. funk, HR, Ö1, SWR). MPI Working Paper. Buffat, J., Praxmarer, M., Sutter, M. (2019). The intrinsic value of Matthias Sutter has also acted as political adviser, both decision rights: A note on team versus individual decision-making. through having been a member of the scientific advisory coun- Working Paper MPI Bonn. cil of Austria’s Federal Ministry of Family Affairs (under federal Cappelen, A., Falch, R. Huang, Z., Tungodden, B. (2020a). How do minister Sophie Karmasin) until 2018, and in his current adults handle distributive conflicts among children? Experimental capacity as member of the Government of Vorarlberg’s group evidence from China and Norway. Mimeo NHH Bergen. of experts on COVID-19 (under Landeshauptmann Markus Cappelen, A., Falch, R., Tungodden, B. (2019). The boy crisis: Experi- Wallner). mental evidence on the acceptance of males falling behind. NHH Department of Economics Discussion Paper 06/2019. Cappelen, A., Falch, R., Sörensen, E., Tungodden, B. (2020b). Solidarity and fairness in times of crisis. Revise and resubmit: Journal of References Economic Behavior and Organization.

Publications and Working Papers by EEG Members (Full-Time and Charness, G., Cobo-Reyes, R., Eyster, E., Katz, G., Sanchez, A., Sutter, M. (2020). Improving healthy eating in children: Experimental Part-Time) evidence. Working Paper University of California Santa Barbara. Andreozzi, L., Ploner, M., Saral, A.S. (2020). The stability of conditional Chowdhury, S., Schildberg-Hörisch, H., Schneider, S. O., Sutter, M. cooperation: Beliefs alone cannot explain the decline of coopera- (2020a). Are nudges effective to contain Covid-19? An RCT in rural tion in social dilemmas. Scientific Reports, 10, 13610. Bangladesh. MPI Working Paper. Angerer, S., Dutcher, G., Glätzle-Rützler, D., Lergetporer, P., Sutter, M. Chowdhury, S., Sutter, M., Zimmermann, K. (2020b). Economic (2020). Outcomes versus memories and the formation of risk preferences across generations and family clusters: A large-scale preferences. Working Paper MPI Bonn. experiment. IZA Discussion Paper 13451. Revise and resubmit: Balafoutas, L., Fornwagner, H., Kerschbamer, R., Sutter, M., Tverdost- Journal of Political Economy. up, M. (2020). Diagnostic uncertainty and insurance in credence

49 C. Research Program

Christensen, D., Dube, O., Haushofer, J., Siddiqi, B. and Voors, M. Kassis, M., Schmidt, S., Schreyer, D., Sutter, M. (2019). Measuring the (2020). Building resilient health systems: Experimental evidence value of managerial decisions in dynamic team tournaments – from Sierra Leone and the 2014 Ebola outbreak. NBER Working Evidence from a natural field experiment. IZA Discussion Paper Paper 27634. Quarterly Journal of Economics (forthcoming). 13628. Revise and resubmit: Games and Economic Behavior. Cooper, D. J., Sutter, M. (2018). Endogenous role assignment and Kerschbamer, R., Neururer, D., Sutter, M. (2019). Credence goods mar- team performance. International Economic Review 59(3), 1547- kets and the value of new media: A natural field experiment. IZA 1569. Discussion Paper 12184. Detlefsen, L., Friedl, A., Lima de Miranda, K., Schmidt, U., Sutter, M. Kiessling, L. (2020). How do parents perceive the returns to parenting (2018). Are economic preferences shaped by the family context? styles and neighborhoods? Working Paper MPI Bonn. The impact of birth order and siblings’ sex composition on economic preferences. CESifo Working Paper Series 7362. Kiessling, L., Chowdhury, S., Schildberg-Hörisch, H., Sutter, M. (2020c). Parental Paternalism. Working Paper MPI Bonn. Egger, D., Haushofer, J., Miguel, E., Niehaus, P., Walker, M. (2019). General equilibrium effects of unconditional cash transfers: Kiessling, L., Norris, J. (2020). The long-run effects of peers on mental Experimental evidence from Kenya. NBER Working Paper 26600. health. Working Paper MPI Bonn 2020/14. Revise and resubmit: Econometrica. Kiessling, L., Pinger, P., Seegers, P., Bergerhoff, J. (2019a). Gender dif- Falch, R. (2020). How do people trade off resources between quick ferences in wage expectations: Sorting, children, and negotiation and slow learners? Mimeo NHH Bergen. styles. CESifo Working Paper 7827. Fang, X., Goette, L., Rockenbach, B., Sutter, M., Tiefenbeck, V., Schoeb, Kiessling, L., Radbruch, J., Schaube, S. (2019b). Determinants of S., Staake, T. (2020). Complementarities in behavioral interven- peer selection. Working CRC TR 224 Discussion Paper 92/2019. tions: Evidence from a field experiment on energy conservations. University of Bonn. CRC TR 224 Discussion Paper 149/2020. University of Bonn. Kiessling, L., Radbruch, J., Schaube, S. (2019c). Self-selection of peers Fehr, D., Sutter, M. (2019). Gossip and the efficiency of interactions. and performance, Revise and Resubmit: Management Science. Games and Economic Behavior, 113, 448-460. Kirchler, M., Lindner, F., Weitzel, U. (2018). Rankings and risk-taking in Gill, A., Heinz, M., Schumacher, H., Sutter, M. (2020). Trustworthiness the finance industry. Journal of Finance 73(5), 2271-2302. in the financial industry. IZA Discussion Paper 13583. Kirchler, M., Lindner, F., Weitzel, U. (2020). Delegated investment deci- Glaser, M., Iliewa, Z., Weber, M. (2019). Thinking about prices versus sions and rankings. Journal of Banking and Finance, 120, Article thinking about returns in financial markets.The Journal of Fi- 105952. nance, 74(6), 2996-3039. Kocher, M., Praxmarer, M., Sutter, M. (2020). Team decision-making. Glätzle-Rützler, D., Lergetporer, P., Sutter, M. (2019). Collective inter- In: Zimmermann, K. F. (Ed.): Handbook of Labor, Human Resources temporal decisions and heterogeneity in groups. CESifo Working and Population Economics. Springer: Heidelberg, in press. Paper Series 7716. Revise and resubmit: Games and Economic Maddix, N. (2019). Financial nudges for savings, bill payment, and Behavior. repayment: Evidence from the United States. Working Paper MPI Haushofer, J., Chemin, M., Jang, C., Abraham, J. (2020). Economic Bonn. and psychological effects of health insurance and cash transfers: Monteiro, S., Sutter, M., Wiesen, D., Larmuth, K., Kroff, J. (work in prog- Evidence from a randomized experiment in Kenya. Journal of ress). The effect of technology assisted behavioral interventions Development Economics, 144, 102416. in type-2 diabetes. Haushofer, J., Metcalf, C. J. E. (2020). Which interventions work best Priyam, S., Salicath, D., Sutter, M. (work in progress). An RCT to reduce in a pandemic? Science, 368(6495), 1063-1065. arsenic contamination in groundwater. Experimental evidence Haushofer, J., Ringdal, C., Shapiro, J., Wang, X.-Y. (2019). Income from Bihar, India. changes and domestic violence: Evidence from unconditional Riener, G., Schneider, S. O., Wagner, V. (2020). Addressing validity and cash transfers in Kenya. NBER Working Paper 25627. generalizability concerns in field experiments. MPI Discussion Haushofer, J., Ringdal, C., Shapiro, J., Wang, X.-Y. (2020). Spousal (dis) Paper 2020/16. agreement in reporting of intimate partner violence in Kenya. Rockenbach B., Sadrieh A., Schielke A. (2020). Providing personal American Economic Review: Papers & Proceedings, 110, 620-624. information to the benefit of others.PLoSONE , 15(8), e0237183. Heinz, M., Jeworrek, S., Mertins, V., Schumacher, H., Sutter, M. (2020). Rockenbach, B., Tonke, S., Weiß, A. (2020). From diagnosis to treat- Measuring indirect effects of unfair employer behavior on worker ment: An experiment to reduce non-payments for water. Working productivity – A field experiment.Economic Journal, 23, 2546- Paper University of Cologne. 2568. Romano, A., Bortolotti, S., Hofmann, W., Praxmarer, M., Sutter, M. Holzmeister, F., Huber, J., Kirchler, M., Lindner, F., Weitzel, U, Zeisberger, (2020a). Generosity and cooperation across the life span: S. (2020). What drives risk perception? A global survey with finan- A lab-in-the-field study. Psychology and Aging, in press. cial professionals and lay people. Management Science, 66(9), 3799-4358. Romano, A., Sutter, M., Liu, J., Balliet, D. (2020c). Political ideology, cooperation, and national parochialism across 42 nations. Philo- Kaba, M. (2020). The differential electoral returns to a food subsidy sophical Transactions of the Royal Society B (forthcoming). program. Job market paper EUI Florence. Romano, A., Sutter, M., Liu, J., Yamagishi, T., Balliet, D. (2020b). Karlsson Linner, R. K., Biroli, P., …, Sutter, M., …, Beauchamp, J. (2019). National parochialism is ubiquitous around the globe. Nature Genome-wide association analyses of risk tolerance and risky be- Communications (conditionally accepted). haviors in over 1 million individuals identify hundreds of loci and shared genetic influences. Nature Genetics, 51(2), 245-257.

50 C.II Experimental Economics

Schildberg-Hörisch, H., Breitkopf, L., Chowdhury, S., Kamhöfer, D., Sutter, M. (2020). Sensitive periods in the formation of socio-emotional skills: Evidence from a randomized controlled trial. Working Paper, University of Duesseldorf. Schneider, S. O., Ibáñez, M., Riener, G. (2020). Measuring utility – An application to higher order risk and saving in Bogota. Working Paper MPI Bonn. Schneider, S. O., Sutter, M. (2020). Higher order risk preferences: New experimental measures, determinants and field behavior. IZA Discussion Paper 13646. Schwaiger, R., Kirchler, M., Lindner, F., Weitzel, U. (2020). Determinants of investors expectations and statisfaction. A study with financial professional. Journal of Economic Dynamics and Control, 110, Article 103675. Sutter, M., Angerer, S., Glätzle-Rützler, D., Lergetporer, P. (2018). Language group differences in time preferences: Evidence from primary school children in a bilingual city. European Economic Review, 106, 21-34. Sutter, M., Untertrifaller, A. (2020). Children’s heterogeneity in cooperation and parental background. Journal of Economic Behavior and Organization, 171, 286-296. Sutter, M., Weyland, M., Untertrifaller, A., Froitzheim, M. (2020). Financial literacy, risk and time preferences. IZA Discussion Paper 13566. Sutter, M., Zoller, C., Glätzle-Rützler, D. (2019). Economic behavior of children and adolescents – A first survey of experimental economics results. European Economic Review, 111, 98-121. Tonke, S. (2020). Imperfect procedural knowledge: Evidence from a field experiment to encourage water conservation. Working Paper MPI Bonn. Weitzel, U., Huber, C., Huber, J., Kirchler, M., Lindner, F., Rose, J. (2020). Bubbles and financial professionals.Review of Financial Studies, 33(6), 2659-2696.

Publications and Working Papers by Christoph Engel’s Group, Cited Above Adra, A., Kirchkamp, O., Sterba, M.-B. and Ungwang, L. (2020). Large- scale cooperation and moral obligations. Albrecht, F. and Schubert, M. (2020). The effect of grammatical variation on economic behavior. Engel, C., Fedorets, A. and Gorelkina, O. (2020). Risk taking in the Household. Strategic Behavior, Social Preferences, or interdependent preferences? Engel, C., Kube, S. and Kurschilgen, M. (2020). Managing expectations. How selective information affects cooperation. Hausladen, C., Schubert, M. and Ash, E. (2020). Text classification of ideological direction in judicial opinions. International Review of Law and Economics, 62, 105903. Hillenbrand, A. and Hippel, S. (2020). Strategic inattention in product search. O’Hara, L. and Rahal, R.-M. (2020). Context-dependence of normative judgments? Patterns in perceptions of normative force, risk and threat, and ethical dilemmas – evidence from a longitudinal survey study during the COVID-19 epidemic and beyond.

51 C. Research Program

52 C.III Research Group “Moral Courage”

53 C. ResearchResearch Program Program

C.III Research Group “Moral Courage”

Head Prof Dr Anna Baumert

Post-Doctoral Fellows Dr Julia Sasse Dr Mengyao Li

Doctoral Candidates Aya Adra Niklas Cypris Fiona tho Pesch Daniel Toribio Flórez

Current Student Research Assistants Gabriela Küchler Marie Brüggemann Silja Petri Laura Maldonado (TUM)

Supervision of Masters and Bachelor Thesis, Internships Jude Arthur-Kingsley (M.Sc. thesis, TUM) Valerie Benning (M.Sc., UvA, Netherlands) Gabriela Küchler (B.Sc. thesis, University of Koblenz-Landau; M.Sc., University of Bonn) Isa Garbisch (B.Sc. thesis, University of Koblenz-Landau) Fırat Şeker (Erasmus + Internship, Dogus University, Turkey)

54 C.III Research Group “Moral Courage”

Introduction Understanding Psychological Factors of Moral Courage in Interpersonal Contexts Strikingly, some people take considerable personal risks in order to intervene against the wrongdoings of others. Real-life As a basic tenet, we describe how situational and personal examples can be awe-inspiring: facing a group of men beating characteristics jointly shape psychological processes that in an individual who is on the ground, a woman rushes towards turn determine intervention behavior. Our research expands them, screaming at the top of her lungs; overhearing on the across interpersonal and group-level contexts. At the interper- train how someone openly denies the Holocaust, a passen- sonal level, in several lines of research, we have focused on ger confronts them, while everyone else turns away; when the interpretation of, and emotional reactions to, the wrong- witnessing the fraudulent behavior of a colleague, an employ- doings of others, and how these transact with processing of ee blows the whistle, despite that colleague’s close relation costs of intervention. with their superiors. These exemplary individuals overcome threats to their physical, social, or financial well-being to stop, Situational Ambiguity. The results of experimental studies prevent, or redress what they consider violations of fundamen- have indicated that situational ambiguity of a norm violation tal moral principles (Baumert, Halmburger, Küchler, Sasse, and diminishes third-party punishment, in particular among individ- Wagner, under review). Such acts of moral courage by initially uals who are dispositionally concerned about other-regarding uninvolved witnesses are considered highly desirable for the justice (Toribio Flórez, Sasse, and Baumert, under review). functioning of societies; yet, they are rather rare. Similarly, in When provided with the opportunity to gain information to everyday life, individuals often encounter others’ violations of reduce ambiguity, a substantial share of participants chose morally relevant norms (Halmburger, Izydorczyck, and Bau- to do so despite the monetary costs involved, and turned to mert, in preparation) – such as online hate speech or offline punishing when a norm violation became unambiguous (Torib- unfairness –, and some intervene, while a majority remains io Flórez, Sasse, and Baumert, in preparation). This line of passive. The Max Planck Research Group “Moral Courage”, research suggests that ambiguity, arguably a characteristic of initiated in March 2017, is dedicated to investigating the psy- many everyday situations, can induce concerns about wrong- chological factors and processes that drive or hinder bystand- ful punishment as a psychological barrier to intervention. In er intervention against norm violations. a study sampling witnessed norm violations in everyday life across a duration of three weeks (experience sampling), we found further evidence that ambiguity of the norm violation Working Definition and Theoretical can hinder intervention behavior. Specifically, we found that Framework individuals tended to intervene against observed violations only when they felt certain that a severe norm violation had The research group developed a working definition of moral occurred (Halmburger, Izydorczyk, and Baumert, in prepara- courage – in a nutshell, “acting against perceived moral trans- tion). gressions despite personal risks” – that allows for behavioral operationalization and serves to integrate previously discon- Distraction as a Chance to Avoid Costs. As a further situation- nected lines of research in social and personality psychology, al factor that arguably characterizes situations from everyday as well as behavioral economics. A special issue of the Jour- life, we tested the impact of opportunities for distraction in a nal of Experimental Social Psychology that we guest-edited third-person punishment context. First evidence indicates that served to showcase the breadth of research on moral courage individuals deliberately chose to engage in a distractor task, (Baumert, Li, Sasse, and Skitka, 2020). In a review of research presumably to avoid the costs of punishment (Tho Pesch, falling under the working definition, we identified several com- Fiedler, and Baumert, under review). A subsequent behavioral mon antecedents and barriers of moral courage that emerged experiment and an eye-tracking study are planned in order across social contexts, levels of social relationships, types of to elucidate the motivational basis and cognitive processes violations or risks, and normative evaluations of intervention of this effect. This project involves close collaboration with behavior. On this basis, we proposed an integrative framework Susann Fiedler’s group. of moral courage (Li, Sasse, Halmburger, and Baumert, under review), extending our prior work on process models of moral Anger Experience and Expression. In a third line of research, courage (Halmburger, Baumert, and Schmitt, 2017). we investigated the role of anger experience and expression for costly intervention against the wrongdoings of others. We found consistent evidence in complex social situations that anger experienced in reaction to such wrongdoings predicted intervention behavior in correlational designs (Halmburger, Baumert, and Schmitt, 2015; Sasse, Halmburger, and Baumert, in press). We set off to scrutinize the causal relevance of

55 C. Research Program

anger for third-party punishment. We hypothesized that experi- in socially desirable responses, the two morally courageous enced anger leads people to weigh down the costs of inter- groups stood apart consistently and robustly in moral atten- vention and, through this mechanism, also leads to increased tiveness (a tendency to see everyday situations as morally punishment. In five studies, however, we failed to replicate the relevant) and anger proneness (the dispositional tendency to published effects of incidentally induced anger on third-party react with strong anger), coupled with slightly lower levels of punishment. We did find correlational evidence that the per- social anxiety (the tendency to fear negative social evalua- ceived severity of a norm violation transacts with the personal tion). relevance of costs of intervention, such that the more severe a norm violation was perceived, the less costs were taken into account in the decision to punish the transgressor. At present, Group-Level Moral Courage we are extending this line of research in two directions. On the one hand, we turn to experimentally manipulating anger within Moral judgements and behavioral decisions pertain to inter- the situation involving a norm violation (e.g., by varying degree personal relations, but also to relations within and between of unfairness; by anger regulation instructions) and again test social groups. Here, the strength and quality of how individu- its causal effect on third-party punishment. On the other hand, als identify as group members becomes pivotal (Li, Watkins, we want to scrutinize whether anger could be an epiphenom- Allard, Hirschberger, Kretchner, Leidner, and Baumert, under enon of a third variable causing intervention behavior. Can- review). We investigate moral courage in group contexts, didates for such a third variable that we want to test are (a) where standing up against a transgression requires challeng- approach motivation, and (b) intuitive processing mode; both ing group norms and/or authorities, and can be met with harsh of which can be said to be involved in anger experience and to repression. be conducive to intervention behavior. Collective Action under Repression. In contexts characterized In our studies on the role of anger for moral courage, we by high levels of police violence, we investigated motivations distinguish between anger experience as a potential motiva- for radical and non-radical forms of collective protest against tional force conducive to intervention, and anger expression social injustice. We collected survey data among protesters as a potentially communicative strategy serving to signal in Hong Kong and Chile, and consistently found that violence disapproval of a norm violation, while being arguably less was endorsed, and engaged in, during the protests, to the costly than behavioral intervention (Sasse et al., in press). In a extent that it was perceived as morally righteous and legiti- first study, we explored the reasons for which the witnesses of mate, and as an effective means for achieving political goals unfair behavior by others choose to express anger, in addition and for regaining power and dignity. In both contexts, expe- to – or as a substitute for – behavioral intervention. All forms rience with police violence was associated with a stronger of intervention were associated with a heightened perception willingness to engage in future violent protests, above and of unfairness, but with distinct goals. While anger expression beyond past participation in movements (Li, Yuen, Adra, Var- was linked to stimulating behavioral change in the perpetrator, gas Salfate, Chan, and Baumert, in preparation). This suggests behavioral intervention was used to establish fairness. In a a “cycle of violence,” and challenges the assumption that high follow-up study, supported by an EASP Seedcorn grant, we levels of risk serve as a major deterrent to action (Adra, Harb, further investigate the situational and dispositional predictors Li, and Baumert, 2019). Rather, risk can also fuel actions, of the different forms of intervention (Sasse & Baumert, in potentially due to the perception that they reflect the immo- preparation). rality and illegitimacy of the agency responsible for the risk. We are currently extending this research to the Lebanon as a Personality Characteristics of Moral Courage. The critical third context of collective action under repression; as well as relevance of interpretation of a norm violation as such, of to solidarity-based collective action among advantaged group anger reactions, and of the personal relevance of costs is also members (Adra, Li, and Baumert, 2020), in the context of white suggested by personality dispositions that we found uniquely protesters in Black Lives Matter marches. Furthermore, we to characterize morally courageous exemplars (Baumert et use the existing large-scale, cross-national survey and archival al., under review). In this project (partially funded by the Moral data (e.g., Global Barometer Surveys, V-Dem indices) to com- Beacon Project at Wake Forest University, USA), we recruit- pare psychological predictors of collective actions in national ed individuals who had been given public awards for their contexts with varying degrees of state repression. morally courageous behavior in the past, and we compared their responses on personality questionnaires with a group Normative Change. Information about transgressions of individuals who self-nominated as having acted morally committed by one’s own social group can have a substan- courageously, as well as with a reference group who indicat- tial psychological impact on individuals and, under certain ed that they had not acted morally courageously in the past. conditions, motivate action against these transgressions. While controlling for demographic differences or differences Past research has focused mainly on the effects of individual

56 C.III Research Group “Moral Courage”

transgressions. However, accumulating news reports on trans- Baumert, A., Li, M., Sasse, J. and Skitka, L. (2020). Standing up against gressions committed by the ingroup can potentially shift the moral violations: Psychological processes of moral courage. Journal of Experimental Social Psychology, 88, 1-3. perceptions of the group norm over time, which might have distinct, or more powerful, effects on recipients. In collabora- Halmburger, A., Baumert, A. and Schmitt, M. (2017). Everyday heroes: Determinants of moral courage. In: S. T. Allison, G. R. Goethals tion with Fabian Winter’s group, we examine how Americans and R. M. Kramer (Eds.), Handbook of heroism and heroic leader- responded to news reports describing anti-Muslim (Studies ship. Routledge/Taylor & Francis Group, 165-184. 1 and 2) and anti-Hispanic (Study 3) discrimination as having Halmburger, A., Baumert, A. and Schmitt, M. (2015). Anger as driving either increased or remaining largely unchanged. Through the factor of moral courage in comparison to guilt, and global mood: perception of changing norms, increases in transgressions A multimethod approach. European Journal of Social Psychology, over time motivated active engagement for the rights of the 45, 39-51. victimized groups (i.e., by donating a participant bonus or pro- Halmburger, A., Izydorczyk, D. and Baumert, A. (in preparation). Did viding the personal e-mail address to political organizations), someone intervene? An experience sampling study on daily norm to the degree that participants perceived the transgressions violations. as challenging the morality of their group (Li, Adra, Winter, and Li, M., Adra, A., Winter, F. and Baumert, A. (in preparation). Harmful Baumert, in preparation). normative change: How people react to the ingroup’s increasing moral violations. Li, M., Sasse, J., Halmburger, A. and Baumert, A. (under review). Stand- ing up against Moral Transgressions: An integrative perspective Psychological Consequences of Third-Party on the psychological processes of moral courage. Intervention Li, M., Watkins, M. H., Allard, A., Hirschberger, G., Kretchner, M., Leid- ner, B. and Baumert, A. (under review). National glorification and Complementing the investigation on psychological determi- attachment differentially predict support for intergroup conflict nants of moral courage, we have started to investigate the resolution: Scrutinizing cross-country generalizability. effects of interventions against norm violations by others Li, M., Yuen, S., Adra, A., Vargas Salfate, S., Chan, K.-M. and Baumert, on further uninvolved observers. We have acquired funding A. (in preparation). Understanding violent and non-violent political from the TUM Institute for Ethics in Artificial Intelligence for a resistance under repression – converging evidence from Hong collaborative project with the TUM IT lab on Cybertrust (Jens Kong and Chile. Grossklags). In online experimental studies, we have tested Sasse, J. and Baumert, A. (in preparation). It doesn’t have to be action: how counterspeech against hate speech impacts on other Anger expression as intervention against moral transgressions. bystanders’ attitudes and behavioral responses, depending on Sasse, J., Halmburger, A. and Baumert, A. (in press). The functions the shared group membership with the author of the counter- of anger in moral courage – insights from a behavioral study. speech, as well as on individual dispositions and appraisals Emotion. on the part of the bystanders. We have found first evidence Tho Pesch, F., Fiedler, S. and Baumert, A. (under review). Seeing moral that the perceived group norms predict positive attitudes and transgressions: Moral wiggle room in costly punishment. supportive behavior (“likes”, comments) towards the author of Toribio Flórez, D., Sasse. J. and Baumert, A. (under review). “Proof the counterspeech. Based on algorithms for the detection of under reasonable doubt”: Ambiguity of the norm violation as hate speech, we further aim to develop detection algorithms boundary condition of third-party punishment. for counterspeech and use these to scrutinize the effects of Toribio Flórez, D., Sasse, J. and Baumert, A. (in preparation). Reveal- counterspeech in field settings (i.e., on the internet and in ing motivational underpinnings of ambiguity effects on costly third-party punishment. social media).

References Adra, A., Harb, C., Li, M. and Baumert, A. (2019). Predicting collective action tendencies among Filipina domestic workers in Lebanon: Integrating the social identity model of collective action and the role of fear. Group Processes and Intergroup Relations, 23, 967- 978. Adra, A., Li, M. and Baumert, A. (2020). What they think of us: Meta-beliefs and solidarity-based collective action among the advantaged. European Journal of Social Psychology. Baumert, A., Halmburger, A., Sasse, J. Küchler, G. and Wagner, J. (under review). Personality characteristics of moral courage: An extreme groups approach.

57 C. Research Program

58 C.IV Research Group “Economic Cognition”

59 C. Research Program

C.IV Research Group “Economic Cognition”

Head: Dr Susann Fiedler

Post-Doctoral Fellows Dr Jerome Olsen

Doctoral Candidates Alina Fahrenwaldt Minou Ghaffari Fedor Levin Rima-Maria Rahal

Student Research Assistants Hosam Alqaderi Dhananjay Bhandiwad Lina-Sophia Falkenberg Marie Hellmann Yeganehsadat Hosseinisereshgi Abdullah Kiwan Hanna Kondratyuk Daria Lisovoj Anita Lyubenova Sarah Piechowski Marlene Rösner Justine Strube Lena Trost

Interns & Guests Farid Anvari Sylvia Beckmann Vanessa Clemens Eriselda Danaj Anna Trabel

60 C.IV Research Group “Economic Cognition”

Since January 2014, the Gielen-Leyendecker junior research a joint project with Alina Fahrenwaldt and Andreas Glöckner, group has been part of the institute, complementing the scien- we investigate the contingency of cheating behavior on the tific work on collective goods by providing a process perspec- type of the victim (abstract institution vs. fellow participant). tive on decision-making. The group’s work aims to contribute Recording cheating behavior and eye gaze, we find the hypoth- to our understanding of the interplay between the individual esized differences in the propensity of cheating, but see very and situational factors affecting decision behavior and focus- similar patterns for the variables and attention bias. These es on two major challenges: (1) understanding the underlying results indicate that the experience of arousal and unease cognitive and affective processes leading up to a choice and with the situation seem universal and only linked to the cheat- (2) identifying the channels through which situational as well ing behavior itself, but not to the role of the victim. In follow-up as personality factors operate. We made progress on both work, we currently investigate the dynamic nature of such lines of work by combining basic psychological research on processes by re-analyzing and designing a study that will help information search and processing as well as arousal with understand potential (dis)honesty escalation mechanisms incentive-compatible research paradigms. A special focus (Fahrenwaldt and Fiedler, work in progress). is on interactions that arguably involve social preferences. The comprehensive model comparison and investigation of Going beyond our earlier experimental set-ups, using simple factors that influence information processing in economic cheating tasks (i.e., flex dot task), we are currently testing decision-making is conducted jointly by the psychologists in a new eye-tracking paradigm to investigate contribution the group and supported by collaborations with economists decisions in a tax context. Here, Jerome Olsen, Christoph from the institute. A wide set of different projects have been Kogler, and we plan to investigate the systematic differences developed and finalized since 2017. Additionally, we have in choice behavior between gamble and tax decisions, as well shifted the attention within some of the projects lines through as their interplay with prior preferences and attitudes shown in the inspiring input by the new PhD student Alina Fahrenwaldt, a previous online study (N = 187). The online study presented as well as the newly-hired postdoc Jerome Olsen. evidence showing that individuals chose a risky option less frequently when facing a tax rather than a gamble decision, with a subset of individuals always choosing the sure option Social Dilemmas for taxes, irrespectively of the monetary attractiveness of the risky (evasion) option. Hence, we propose an eye-tracking In multiple projects, the group’s work focuses, in particular, on experiment to compare the decision-making processes of tax the information-weighting process while an interdependent decisions directly with monetarily equivalent gamble deci- decision is made in social-dilemma situations. We are particu- sions. larly interested in the question of what variables determine the extent and depth of information search. We investigated these questions in the context of decomposed dictator games, ulti- Ignorance matum games, as well as prisoner’s dilemmas, and we present evidence for an influence of social preferences on the extent In a world in which information exists in abundance, the and pattern of information search in all situations (Fiedler question is often which information is sought and which infor- and Ghaffari, work in progress; Fiedler, work in progress). This mation is ignored in the decision-making process. Stimulated relationship is robust to changes in the incentive structure by through a secondary finding in our project, investigating the variations in payoff schemes (Fiedler, Glöckner and DeDreu, weighting of other people’s outcomes in intergroup situa- work in progress), framing (Fiedler and Hillenbrand, 2020), tions (Rahal, Fiedler, and De Dreu, 2020), and showing that a cognitive load and time pressure (Fiedler, Olsen and Lillig, substantial proportion of participants consciously ignore the work in progress), as well as the decision setup (Rahal, Fiedler, group-identifying information, we focused on personality and and DeDreu, 2020). situational factors driving the decision to ignore information, while identifying a set of relevant personality variables, including inequality aversion. We plan to extend this initial work and Moral Decision-Making am currently developing an idea how to test the link between personality and ignorance in other decision settings also, in Research on ethical decision-making gained many new order to isolate different motives of ignorance directly. insights into the cognitive, social, and situational underpinnings of dishonesty. While self-concept maintenance theory assumes cheating to be a conscious, profit-maximizing type Methodological Developments and Debates behavior that creates ethical dissonance, the bounded ethicality approach holds that it may be the result of motivated, Over the last three years, social-science research has moved albeit unconscious, attentional and reasoning mechanisms. In from being aware of the irreproducibility of the empirical

61 C. Research Program

results (Open Science Collaboration 2012 & 2015) to under- Within the next year, we plan to finalize our work along the standing factors and mechanisms fostering reproducible introduced lines and to branch out to more applied research results. The research group is strongly involved in this debate questions within organizations, in preparation for my new lab and has developed tools fostering transparency and collabora- at the Vienna University of Economics & Business. Examples tion in the scientific community. Extending the more gener- for this are targeting decisions in the context of tax evasion ally oriented work calling for more transparency to specific (joint collaborations with Jerome Olsen), counterproductive research areas, we have developed individually tailored behavior (joint work with Eriselda Danaj), and expert deci- reporting guidelines based on the coding of approximately sion-making. The group’s work will further concentrate on 200 papers and using eye-tracking in the context of judgment experimental work with a strong process orientation and inter- and decision-making research (Fiedler, Schulte-Mecklenbeck, disciplinary focus, as well as on the metascience issues of Renkewitz, and Orquin, 2020). While our previous metascience transparency and theory development in social science (joint work focused strongly on individual studies only, we have DFG proposal with Andreas Glöckner). now developed concrete ideas for using theory databases to increase the reproducibility of complete research fields (Glöckner, Fiedler, and Renkewitz, 2018). In order to go beyond References the pure proof of a concept, we are currently writing a DFG Danaj, E. and Fiedler, S. (in preparation). Moral Norms in Different proposal in order to make such a database for social psychol- Roles. ogy a reality. Fahrenwaldt, A., Olsen, J., Rahal, R. and Fielder, S. (in preparation). The Intuition of Deontological Decision Making: Meta-analytic In the attempt systematically to integrate the empirical evi- Evidence. dence from the field of moral decision-making, we used the Fiedler, S. and Hillenbrand, A. (2020). Gain-Loss Framing in Interdepen- data collection stop for eye-tracking due to the COVID-19 pan- dent Choice. Games and Economic Behavior, 121, 232-251. demic to pursue two meta-analytic projects that summarize Fiedler, S. Fahrenwaldt, A. and Glöckner, A. (in preparation). Fooling the existing literature on the effect of moral wiggle room (Tho Whom Out of His Money? Investigating Arousal Dynamics in the Pesch, Fahrenwaldt, and Fiedler, in preparation), as well as the Context of Betraying Institutions or Strangers. differences between intuitive and reflective decision-making in Fiedler, S., Olsen, S. and Lillig, R. (in preparation). Social Preferences the context of moral dilemmas (i.e., trolley dilemmas; Fahren- Under Constraints. waldt, Olsen, Rahal, and Fiedler, work in progress). Fiedler, S., Schulte-Mecklenbeck, M., Orquin, J. and Renkewitz, F. (2020). Increasing Reproducibilty of Eyetracking Studies: The Working along the lines of openness and transparency, the EyeGuidelines. In M. Schulte-Mecklenbeck, A. Kühberger & R. Ran- research group additionally supports selected large-scale yard (Eds.), A Handbook of Process Tracing Methods for Decision community projects through data collection and idea develop- Research. A Critical Review and User´s Guide. New York and Hove: Psychology Press, 65-75. ment for inter-cultural studies, in order to investigate the generalizability of results in the context of moral decision-making Ghaffari, M. and Fiedler, S. (2018). Social Value Orientation Predicts Information Search in Strategic Environments: An Eye-Tracking (Bago et al., in-principle acceptance; Eriksson et al., work in Analysis. progress). Glöckner, A., Fiedler, S. and Renkewitz, F. (2018). Belastbare und effiziente Wissenschaft: Strategische Ausrichtung von For- schungsprozessen als Weg aus der Replikationskrise. Psycholo- Outlook gische Rundschau, 69(1) 1-15. Olsen, J., Fiedler, S. and Kogler, C. (in preparation). The Riskiness of Many of the projects described above are still in progress and Tax Evasion. have opened up new questions, which we plan to follow up on Open Science Collaboration. (2012). An Open, Large-Scale, Collab- in the future. For example, we are currently planning to extend orative Effort to Estimate the Reproducibility of Psychological our work on cheating to counterproductive behavior within the Science. Perspectives on Psychological Science, 7(6), 657-660. workspace. Further, evidence on prosocial preferences being Open Science Collaboration. (2015). Psychology. Estimating the positively connected not only to prosocial behavior, but also Reproducibility of Psychological Science. Science, 349(6251), to an increase in memory performance in social interactions aac4716. opens up a number of intriguing questions. For example, Rahal, R. M., Fiedler, S. and De Dreu, C. K. (2020). Prosocial Prefer- in which way does this memory advantage play out in the ences Condition Decision Effort and Ingroup Biased Generosity in context of recognizing familiar interaction partners, and how Intergroup Decision-Making. Scientific reports, 10(1), 1-11. does it affect the likelihood of interacting with these partners Tho Pesch, F., Fahrenwaldt, A. and Fiedler, S. (in preparation). The Size (endogenous sorting)? of the Moral Wiggle Room: Meta-Analytic Evidence.

62 C.V Research Group “Mechanisms of Normative Change”

63 C. ResearchResearch Program Program

C.V Research Group “Mechanisms of Normative Change”

Head: Dr Fabian Winter

Post-Doctoral Fellows Dr Adrian Hillenbrand Dr Nan Zhang

Doctoral Students Amalia Álvarez Benjumea

Current Student Research Assistants Luca Michels

64 C.V Research Group “Mechanisms of Normative Change”

The research group “Mechanisms of Normative Change” is an Research Foundation, project number 395336584). Our find- interdisciplinary group established at the MPI for Collective ings thus far show that the willingness to sanction violations Goods in 2015. Our group brings sociologists, political sci- of fairness norms decreases with the number of potential entists, economists, psychologists, and computer scientists sanctioners (Winter and Franzen 2017). We later tested this together to further our understanding of how social norms diffusion of responsibility more directly, using the Volunteer’s change. In the past two years, we have made considerable Dilemma (Hillenbrand and Winter 2018), which confirmed progress in understanding the changing patterns of coopera- this result. A series of follow-up experiments, including field tion and the evolution of social norms. We have very success- experiments in online labor markets (Hillenbrand, Werner, and fully developed paradigms that help us understand normative Winter 2019) and repeated games with heterogeneous actors change as a consequence of migration, as a consequence of (Hillenbrand and Winter 2019), tests the robustness of this updated beliefs and anomie, and as a consequence of popula- effect under varying conditions. tion uncertainty.

The Emergence and Containment of Hate Field Experiments on Ethnic Diversity Speech

The group’s first stream of research capitalizes on field-ex- In the past years, we started to study the breakdown of norms perimental methods to understand the consequences of against hate speech, i.e., speech promoting racist, sexist, or migration for normative behavior. The starting point of this classist discrimination. In our new paradigm, participants research is Putnam’s (2001) popular argument that social were invited to experimental online forums and were asked diversity threatens social cohesion. To test this claim, we hired to comment on pictures and related discussions. In our first native and immigrant actors to stage norm violations close to publication in this field (Álvarez Benjumea and Winter, ESR train stations in Bonn and Cologne (Winter and Zhang, PNAS 2018), we show that censoring previous instances of hate 2018). Confederate raters recorded the reactions of native and speech reduces the level of hate speech, while publicly count- immigrant passers-by, respectively. Our results clearly show er-commenting hate speech does not. Our second contribu- differential patterns of norm enforcement: Immigrants sanction studies the effects of terrorist attacks on the breakdown tion immigrants at the same rate as natives sanction natives, of anti-racist norms in a unique combination of a lab-in-the- but immigrants mostly refrain from sanctioning natives, while field and a natural experiment Álvarez Benjumea and Winter, natives sanction immigrants more than they sanction natives. PNAS 2020). Not surprisingly, hate speech against refugees This paper concludes that a possible deterioration of social increases after the attacks. However, we can show that people cohesion would be caused by natives not being sanctioned experience normative uncertainty and are therefore looking for enough, rather than by immigrants getting away unsanctioned. normative cues in their environment. If they observe mostly Similar patterns can be observed in helping behavior, too: positive comments towards refugees, the level of hate speech high-status Swiss confederates are more likely to successfully after the attacks does not differ from the level before the borrow a phone from a stranger compared to either those attacks. In an ongoing project, we investigate how observing with a German or some generic foreign accent (Zhang et al., hate speech leads to donations to pro- and anti-refugee lobby 2019a). This paper recently won the ESR Best Article Prize groups (Álvarez Benjumea 2019). Quite surprisingly for us, we 2019. Zhang, Gerecke, and Baldassari (in preparation) show find a strong gender effect. While men are mostly unaffected similar effects of racial avoidance in a field experiment in by comments made by others, women tend to donate less if metro stations in Milan. Nan Zhang has successfully applied they observe racist comments. for an Emmy Noether Group, starting in mid-2021, to develop this line of research further, and he wants to use the following Over the next years, we plan to use this paradigm to study years to investigate further the interplay between ethnicity, the long-term effects of normative change and its underly- social status, and sanctioning (Zhang et al. 2019b, Zhang in ing mechanisms. In collaboration with the Moral Courage preparation, Gereke et al. 2019). Group, headed by Anna Baumert, we are designing a study on the psychological underpinnings of the acceptability of anti-Muslim statements (Li et al., ongoing). More importantly, Volunteering under Population Uncertainty however, we plan to capitalize on the paradigm developed in Álvarez Benjumea, and Winter (2018) and apply it in a series of The second line of research investigates the consequenc- elections and referenda. These referenda will serve as external es of population uncertainty for norms of cooperation and shocks and will help us better to understand the causes of the sanctioning, i.e., uncertainty about the number of players in a changes in anti-racist norms. For instance, we are currently game-theoretical sense. I am the PI on this project and grate- collecting data on the acceptability of hate speech in the year fully acknowledge financial support from the DFG (German leading up to the 2020 U.S. election, and half a year after the

65 C. Research Program

election (i.e., until spring 2021, Álvarez Benjumea, Winter, and our institute, headed by Susann Fiedler (Fiedler and Hillen- Zhang, ongoing). Finally, we plan to collect data in the months brand 2020), and the relation between pro-sociality, empathy, around an upcoming referendum on banning burqas in Swit- and contagious yawning (Franzen et al. 2018). Moreover, we zerland. are extending our research in the field of sociology of science on citation patterns, and we have published first results (Rauhut, Winter, and Johann 2018, Rauhut and Winter, 2017a, Incentivized Survey Measures of Social 2018). A promising, but challenging, extension of this work Norms is invited for resubmission to PNAS (Winter, Rathmann, and Rauhut, 2020). The group has been heavily engaged in developing monetarily incentivized measures of social norms that can be applied in surveys. We tested several existing measures, such as the Institutions and Social Behavior Social Value Orientation measure by Murphy et al. (2014), and implemented the latter in a computerized form that can be Finally, our group has also engaged in research aiming to used in lab experiments and online surveys (Crosetto, Weisel, understand the interplay of social behavior and institutions. and Winter (2020)). This measure has been implemented in a Hillenbrand and Hippel (2019) show that technological devel- representative study in Austria (Böhm et al. 2017) and a multi- opments in online markets fundamentally change the rela- national, multi-lab study (Van Doesum et al. 2020). In an exten- tionship between consumers and sellers. While sellers may sion of this approach, we developed a new measure, the NS-5 capitalize on search patterns in online markets to price-dis- measure, which measures actions and beliefs in surveys in an criminate based on the consumer’s preferences revealed by incentive-compatible way (Winter et al. ongoing). The devel- their search patterns, consumers in turn restrict their search opment of the NS-5 measure has led to a collaboration with for the optimal product to reach a better price. Nan Zhang, on the PASS Panel, administered by the Institute for Employment the other hand, focuses on the interplay between state actors Research (Institut für Arbeitsmarkt und Berufsforschung, IAB). and individuals. He uses an instrumental-variables approach A version of the measure was included in the 2020 wave and to show how literacy in pre-revolutionary France has important will hopefully also be included in the 2021 wave of the PASS; consequences for marriage patterns (Zhang and Lee, 2020). it aims to provide a better understanding of changing norms In another project focusing on the interplay between social as a result of experiencing long periods of unemployment norms and state institutions, he shows that social norms on (Gereke, Winter, and Rauhut, ongoing). We have also continued reporting tax evasion lead to differential effects of sanctioning our work on measuring fairness norms. For instance, we have institutions in northern and southern Italy (Zhang, 2018). The developed and tested a rather comprehensive set of tasks to paradoxical effects of combating corruption are also con- induce the feeling of entitlement and use these tasks to study firmed in two natural experiments in Argentina (Poertner and said norms (Winter 2017), based on a theoretical approach Zhang, 2020). spelled out in Rauhut and Winter (2017b). Hillenbrand and Verrina (2018) show that narratives about the appropriateness In parallel to the above work, I have ventured into a new field of certain actions play a decisive role in which fairness norms together with Svenja Hippel. Rapid technological develop- are implemented. ments in online markets fundamentally change the relationship between consumers and sellers. The rise of online platforms increases the transparency for consumers in many Replication Studies and Methodological Work markets, because a multitude of products can now easily be accessed and browsed through on a single web page. At In addition to the core projects mentioned above, the group first sight, this is beneficial for consumers, since they can has engaged in several other projects in their direct periphery. find more relevant and better-fitting product offers. Howev- Fabian Winter, Nan Zhang, and Amalia Álvarez Benjumea have er, online platforms can also more easily gather data about contributed to the Crowdsourced Replication Initiative on the consumers, in particular about those with more intense search effect of migration on welfare-state attitudes (Breznau et al., behavior on the particular site. In Strategic Inattention in ongoing, a, b), and Fabian Winter as well as Nan Zhang are Product Search, we study the resulting trade-off for consumers part of the SCORE Replication Initiative (Nosek and the SCORE theoretically, as well as in a laboratory experiment. Consumers Project, ongoing). The latter project has led to an extended can search intensively, receiving a well-fitting product, but at a replication study on differential friendship patterns among very high price; or else they can search less, being strategically natives and immigrants, which we are currently writing up as a inattentive – and receive a worse fit, but potentially at a better comment (Kretschmer et al., ongoing). In more psychological price overall. While consumers do restrict their search in the paradigms, we investigated framing effects in interdependent experiment, we find that it is the sellers, and not the buyers, decisions, in collaboration with the Process-Tracing Group at who profit from higher filter choices. We will extend this

66 C.V Research Group “Mechanisms of Normative Change”

project in the future by analyzing the impact of competition as Hillenbrand, A. and Verrina, E. (2018). The Differential Effect of Narra- well as the reaction of consumers to different forms of price tives. MPI Discussion Papers 2018/16. discrimination, e.g., personalized discounts. Hillenbrand, A., Werner, T. and Winter, F. (2019). Volunteering at the Workplace Under Incomplete Information: Teamsize Does Not Matter. Submitted. Hillenbrand, A. and Winter, F. (2018). Volunteering under Population Organization of Workshops and Panels Uncertainty. Games and Economic Behavior, 109, 65–81. In the past years, we have organized a series of workshops Kretschmer, D., Gereke, J., Winter, F. and Zhang, N. (ongoing). Ethnic and panels at international conferences. Most notably, David Composition and Friendship Segregation: No Differential Effects for Adolescent Natives and Immigrants. Hugh-Jones of the University of East-Anglia and I are co-organizing the Cultural Transmission and Social Norms work- Lee, M. and Zhang, N. (2017). Legibility and the Informational Founda- tions of State Capacity. Journal of Politics, 79(1), 118–132. shop. In 2017 (CTSN 2), the event was hosted at the UEA and funded, among others, by the Thyssen Foundation, the Royal Lee, M. and Zhang, N. (in preparation). From Pluribus to Unum: Economic Society, and the research group. In 2018, CTSN 3 Statebuilding in 19th Century America. was hosted by the MIT Sloan School of Business. The event Li, M., Adra, A., Winter, F. and Baumert, A. (ongoing). The Evolution of attracts experts of the highest caliber in the field of normative Anti-Muslim Sentiment: An Experimental Study in the U.S. change and will hopefully be hosted at the MPI in Bonn in Nosek, B. and the SCORE-Project (ongoing). Assessing and Predicting 2020. Replicability of Social-Behavioral Science Findings. Poertner, M. and Zhang, N. (2020). The Paradoxical Effects of Com- bating Corruption on Political Engagement: Evidence from Two References Natural Experiments. Submitted. Rauhut, H. and Winter, F. (2017). Vernetzung und Positionierung der Álvarez Benjumea, A. (2020). Exposition to Xenophobic Content and Kölner Zeitschrift für Soziologie und Sozialpsychologie (KZfSS) Support for Right-wing Populism: The Asymmetric Role of Gender. in der länder-, disziplinen- und sprachübergreifenden Diskussion. Under review in Social Science Research, 92, Vol. 92, 102480. Kölner Zeitschrift für Soziologie und Sozialpsychologie, (Suppl 1) Álvarez Benjumea, A., Freund, L., Luckner, K. and Winter, F. (2018). 69, 61–74. Public Signals as Coordination Devices: The Moderating Effect of Rauhut, H. and Winter , F. (2017). Types of Normative Conflicts and Group Identity. Submitted. the Effectiveness of Punishment. In: Prezpjorka, W. and Jann, B. Álvarez Benjumea, A. and Winter, F. (2018). Normative Change and (eds.). Social dilemmas, institutions and the evolution of coopera- Culture of Hate: An Experiment in Online Environments. European tion. Oldenbourg: De Gruyter, 239–258. Sociological Review, 34(3), 223–237. Rauhut, H. and Winter, F. (2018). Der Markt der Aufmerksamkeit in der Álvarez Benjumea, A. and Winter, F. (2020). The Breakdown of Anti- Soziologie: Trends im Publizieren, Zitieren und Netzwerken. SSRN Racist Norms: A Natural Experiment on Normative Uncertainty 3264134. after Terrorist Attacks. PNAS – Proceedings of the National Acade- Rauhut, H., Winter, F. and Johann, D. (2018). Does the Winner Take It my of Sciences, 117(37), 22800–22804. All? Increasing Inequality in Scientific Authorship. In: Scott, R. A., Böhm, R., Fleiß, J., Rauhut, H., Rybnicek, R. and Winter, F. (2017). Kosslyn, S. M. and Buchmann, M. (eds.). Emerging Trends in the Representative Evidence on Social Value Orientation in Austria. Social and Behavioral Sciences, 1-14. Submitted. Winter, F. (2017). Real Effort Tasks in Economic Experiments: An Em- Breznau et al. (ongoing a). Midnight in the Garden of Forking Paths: pirical Comparison of Tasks and their Behavioral Effects. mimeo, The Realities of Researcher Variability. MPI Collective Goods. Breznau et al. (ongoing b). Does Immigration Undermine Public Sup- Winter, F. and Diekmann, A. (2020). The Psychological Consequences port for Social Policy? A Crowdsourced Re-Investigation. of Money: Two Replications and Four Extensions. In: Buskens, V., Corten, R. and Snijders, C. (eds.). Advances in the Sociology Crosetto, P., Weisel, O. and Winter, F. (2019). A Flexible z-Tree and of Trust and Cooperation: Theory, Experiments, and Applications. oTree Implementation of the Social Value Orientation Slider Mea- Oldenbourg: De Gruyter, 309-318. sure. Journal of Behavioral and Experimental Finance, 23, 46–53. Winter, F. and Franzen, A. (2017). Diffusion of Responsibility in Norm Van Doesum, N., Ryan, J., Murphy, O., Aharonov-Majar, E., ... , Winter, F., Enforcement: Evidence from an N-Person Ultimatum Bargaining ... (2020). Social Mindfulness Across the Globe. Revise & Resub- Experiment. In: Prezpjorka, W. and Jann, B. (eds.). Social dilem- mit PNAS – Proceedings of the National Academy of Sciences. mas, institutions and the evolution of cooperation. Oldenbourg: De Gruyter, 303–326. Franzen, A., Mader, S. and Winter, F. (2018). Contagious Yawning, Empathy and Their Relation to Pro-social Behavior. Journal of Winter, F. and Kataria, M. (2020). You Are Who Your Friends Are?: An Experimental Psychology: General, 147(12), 1950–1958. Experiment on Homophily in Trustworthiness Among Friends. Rationality and Society, 32(2), 223–251. Gereke, J., Schaeffer, M. and Zhang, N. (ongoing). Immigration, Ethnic Diversity, and the Future of the Scandinavian Welfare State: A Winter, F., Rathmann, J. and Rauhut, H. (2020). The Increasing Dom- Field Experiment in Greater Copenhagen. inance of Networking in the Production of Knowledge. Revise & Resubmit: PNAS – Proceedings of the National Academy of Hillenbrand, A. and Hippel, S. (2019). Strategic Inattention in Product Sciences. Search. MPI Discussion Paper 2017/21.

67 C. Research Program

Winter, F., Rauhut, H. and Miller, L. (2018). Dynamic Bargaining and Normative Conflict.Journal of Behavioral and Experimental Eco- nomics, 74, 112–126. Winter, F., Rauhut, H., Fleiss, J. and Hoeglinger, M. (ongoing). A Behav- ioral Validation of Prosociality Measures. Winter, F. and Zhang, N. (2018). Social Norm Enforcement in Ethni- cally-Diverse Communities. PNAS – Proceedings of the National Academy of Sciences, 115(11) 2722–2727. Zhang, N. (2018). Institutions, Norms, and Accountability: A Corrup- tion Experiment with Northern and Southern Italians. Journal of Experimental Political Science, 5(1), 11–25. Zhang, N., Aidenberger, A., Rauhut, H. and Winter, F. (2019). Prosocial Behavior in Interethnic Encounters: Evidence from a Field Experi- ment with High- and Low-Status Immigrants. European Sociologi- cal Review, 35(4), 582–597. Zhang, N., Gereke, J. and Baldassarri, D. (2019b). Racial Avoidance in Everyday Encounters: A Field Experiment in the Milan Metro. Mimeo. Zhang, N. and Lee, M. (forthcoming). Literacy and State-Society Interactions in 19th Century France. American Journal of Political Science.

68 C.VI International Max Planck Research Schools

69 C. Research Program

C.VI.1 International Max Planck Research School on Behaviorally Smart Institutions (IMPRS BeSmart)

Partners:

Christoph Engel, MPI Bonn, Behavioral Law and Economics

Matthias Sutter, MPI Bonn, Experimental Economics

Felix Bierbrauer, University of Cologne, Faculty of Manage- ment, Economics and Social Sciences

Daniel Zimmer, University of Bonn, Faculty of Law

Uri Gneezy, UC San Diego, Rady School of Management

Bertil Tungodden, Norwegian School of Economics

Stefan Bechtold, ETH Zurich, Center for Law and Economics

Eyal Zamir, Hebrew University, Law School

Chair:

Christoph Engel

70 C.VI Research Schools

Interactions between Institutions and Humans evidence may be tilted towards their personal interest. Even in the (Neoclassical) Law and Economics if an individual has the best of all intentions, she may lack the ability to act upon them. Socially undesirable behavior may Perspective be a habit that she cannot overcome at short notice. She may Institutions are ubiquitous. All human behavior is embedded lack the necessary self‐control, or the ability to plan her life on in and guided by formal and informal institutions. The disci- a sufficiently long time horizon. For these and many related pline of economics models individuals as having well‐defined reasons, it is paramount for institutional designers to under- preferences, and as maximizing their personal well‐being. In stand the mental mechanisms and motivations that determine this perspective, institutions are constraints. The economic choices. model predicts that different institutions give rise to differences in human behavior. This prediction resonates with It is by no means the case, however, that all humans are the observation: if one is by default an organ donor, many more same. For the analyst and designer, heterogeneity in human organs are donated; if a reputation system reliably tracks the behavior is a challenge. First‐generation behavioral analysis trustworthiness of sellers on an online platform, there is less tends to bracket heterogeneity. It implicitly assumes that fraudulent behavior; if the usage of roads is priced contingent variation in behavioral determinants is distributed in some on traffic conditions, there is less congestion; if free-riders well‐behaved way around some central tendency. Technically, can be sanctioned, all group members cooperate more. All of the variance is put into a noise term. Analysis focuses on the these examples illustrate how human behavioral dispositions average population effect. Now, again, reality can be quite and institutions interact. different. A huge literature has, for instance, shown that most populations consist of a sizeable minority of selfish individu- Most formal institutions are legal, and many non‐legal insti- als, a small minority of unconditional altruists, and a majority tutions are regulated by law. The disciplines of both law and of conditional cooperators. This majority is good-natured only economics are therefore complementary for analyzing the if it knows or expects a sufficient fraction of their interaction interplay of human behavior and institutions, and to develop partners to be good‐natured as well. Such patterned heteroge- institutions that promise outcomes that are individually or neity is not only much harder to identify and measure; it also socially more desirable. Yet, (neoclassical) law and econom- exposes institutional designers to a much harder problem, ics starts from a very narrow definition of human behavior. because institutions should provide a useful framework This is worrisome both from an analytic and from a normative not just for one particular type of human behavior, but for a perspective. While a particular institution might be optimal in possibly large set of different types. Ideally, institutions should case of a rational, well‐informed, and forward‐looking individ- engender desirable behavior even when humans are character- ual, this may not at all be the case when human behavior devi- ized by a series of behavioral limitations introduced above. ates from these assumptions. Addressing the key limitations of human behavior and deriving implications for institutional design from these limitations is the task of the proposed Building Behaviorally Smart Institutions graduate school. In the following, we sketch some of the most troublesome, but also intellectually most interesting, limita- Sometimes institutional designers can adopt a two-step tions. Informing institutional analysis and design about these approach. In the first step, they reduce behavioral complexity limitations will be the focus of the school. to a degree that makes it possible to ignore occasional deviations. Markets often have this effect, as suppliers who ignore market pressure are forced to leave the market. If behavior Introducing Behavioral Law and Economics to is embedded in formal or informal institutional structures, it the Analysis of Interactions between Humans becomes much more predictable what agents are likely to do. Quite often, however, institutional designers have to take their and Institutions addressees with the behavioral patterns and limitations they Real institutions do not address the agents of economic text- happen to have. Therefore, in a second step, it is necessary books; they address real people. Real people care more about to study these patterns empirically. Running experiments will goods than money. This can be captured by shifting from prof- be the prime method to do so in this graduate school, since it to utility space. But a richer utility function is still exclusively by random assignment of subjects to different treatment motivational. Arguably, the reason why real people behave in conditions it is possible causally to identify which institution- normatively undesirable ways is also cognitive. They may not al features generate which type of behavior, conditional on understand what would be in their individual best interest. behavioral patterns and limitations. As such, experiments in They may misinterpret the situation. They may overestimate a the laboratory or randomized control trials in the field allow risk and underestimate an opportunity, or they may be overly for testing how institutional design affects human behavior. optimistic. The way how they read the available incomplete However, behaviorally informed institutional design need not

71 C. Research Program

be more challenging than designing institutions for agents one under whose sway they are. Not everything that can be done expects to maximize profit. In many contexts, many individ- should be done. A normative discourse is required. But for this uals are good‐natured. Or, to use the language introduced by discourse to be meaningful, one must understand the object Aristotle: Man is a social being. When taking action, humans of intervention, i.e., human behavior. Handing the issue over to tend to reflect the effects on others. Many care about being the inhabitants of the philosophical ivory tower is not enough. good members of the social groups to which they belong. The normative discussion must go hand in hand with a grow- This opens up an avenue for less intrusive intervention. It ing understanding of mental and social mechanisms. may suffice to overcome temptation, or the unsubstantiat- ed fear of being harmed. It may even be enough to make In our research program, the following questions guide us: the individual see the situation in the appropriate light. This How can one help institutional analysts and designers make approach has been prominently labeled “nudging”. Compared more adequate definitions of the problems that call for inter- with the inhabitants of the animal kingdom, the behavior of vention? And how can one help them design interventions that humans is extraordinarily plastic. One might even say that the are more effective, and ideally also less intrusive? How can human species specializes in reinventing itself with every new this program of making institutional design smarter come to generation. It is not pigeonholed in evolutionary niches and life? The answers will not be found in the silo of one discipline. has the ability to conquer whatever new environment it faces. One needs behavioral research to understand the determi- Humans are the more plastic the younger they are. This makes nants of human behavior more deeply. One needs comparative it important to understand the ways in which the behavior of research to assess the variability of human behavior, as well the next generation is shaped in their youth, and the degree to as its plasticity. One needs the analysis of existing institutions: which this process is open to purposeful institutional inter- in which contexts have the interventions delivered on their vention. An institutional designer is a social engineer. She promises? In which contexts have they been counter‐produc- wants to change the behavior of some discernible fraction of tive? And when have they been robust to which changes in the the population. If unconstrained, she goes for the interven- environment, or the political landscape? Also, one needs input tion that promises to be most effective, or the monetary or from those who understand the existing arsenal of interven- political cost of which she deems affordable. Yet, humans do tions: what has been used where, and for which purposes? not want to be treated like pawns on a chessboard. They have Which are the framework conditions that must be respected? dignity and care about being respected by the state and others

72 C.VI Research Schools

C.VI.2 International Max Planck Research School on on Adapting Behavior in a Fundamentally Uncertain World (IMPRS Uncertainty)

During the period covered by this report, the International Max The school was a joint venture of three Max Planck institutes: Planck Research School Adapting Behavior to a Fundamen- our institute, the Institute for Human Development in Berlin, tally Uncertain World, or IMPRS Uncertainty, as it has been and the former Institute for Economics in Jena, as well as customarily called, has reached the end of its second six-year the Universities of Jena (Departments of Economics and of period. In line with the recommendations of the Max Planck Psychology), Bonn (Law School) and Cologne (Economics Society, this school has been terminated (but the new IMPRS Department). International partners were the Hebrew Univer- Be Smart was opened back-to-back). The scientific program sity in Jerusalem, Indiana University in Bloomington, and the of the school has been extensively covered in earlier reports University of Trento. Over the years, more than 50 PhD stu- of the institute, as well as in the regular reports of the school dents have successfully defended their thesis. Many of them itself. We refer to these reports for more details. At this point, now hold positions in academia. we would merely like to remind readers of the focus of the school. Combining paradigms and methods from behavioral Each year, the school organized three bigger events: a month- economics, psychology, law, and other social sciences, the long summer school, a week-long workshop, at which each school has been interested in pervasive uncertainty as a PhD project was stress-tested by faculty and students, and a condition for a very large part of social life, and as a challenge topical workshop, usually partnering with a foreign research for the design and implementation of institutions meant to institution interested in related topics and methods. provide guidance.

73 C. Research Program

74 D. Research Portraits

75 D. Research Portraits

List of Researchers in Alphabetical Order

For researchers currently working at the institute, all publications are reported. For researchers who have left the institute before or during the period covered by this report, only publications are listed that have resulted from research undertaken at the institute.

Aya Adra...... 77 Svenja Hippel...... 159 Julia Sasse...... 219

Amalia Álvarez Benjumea...... 79 Leonard Hoeft...... 163 Stefan Schmidt...... 223

Zvonimir Bašić ...... 81 Zwetelina Iliewa...... 165 Alexander Schneeberger...... 225

Anna Baumert...... 83 Mustafa Kaba...... 167 Cornelius Schneider...... 227

Stefania Bortolotti...... 87 Mahdi Khesali...... 169 Sebastian O. Schneider...... 231

Philip Brookins...... 91 Lukas Kiessling...... 171 Marcel Schubert...... 235

Claudia Cerrone...... 95 Pascal Langenbach...... 173 Armin Steinbach...... 237

Konstantin Chatziathanasiou...... 99 Lisa Lenz...... 177 Maj-Britt Sterba...... 241

Stefanie Egidy...... 103 Fedor Levin...... 179 Martin Sternberg...... 243

Christoph Engel...... 107 Mengyao Li...... 181 Matthias Sutter...... 245

Alina Fahrenwaldt...... 113 Nathan Maddix...... 185 Fiona tho Pesch...... 253

Ranveig Falch...... 117 Sofia Monteiro...... 187 Sebastian Tonke...... 255

Susann Fiedler...... 119 Alexander Morell...... 189 Daniel Toribio-Flórez...... 259

Jens Frankenreiter...... 123 Laurence O’Hara...... 193 Matthew Trail...... 263

Lars Freund...... 127 Jerome Olsen...... 197 Anna Untertrifaller...... 265

Minou Ghaffari...... 129 Matthias Praxmarer...... 201 Eugenio Verrina...... 267

Nina Grgić-Hlača...... 131 Shambhavi Priyam...... 203 Yuqi Wang...... 269

Werner Güth...... 135 Rima-Maria Rahal...... 205 Carl Christian von Weizsäcker.....271

Hanjo Hamann...... 139 Sebastian Riedmiller...... 209 Fabian Winter...... 275

Carina Hausladen...... 143 Angelo Romano...... 211 Nan Zhang...... 279

Martin F. Hellwig...... 145 Johannes Rottmann...... 213 Claudia Zoller...... 283

Yoan Hermstrüwer...... 153 Daniel Salicath...... 215 Frederike Zufall...... 285

Adrian Hillenbrand...... 157 Ali Seyhun Saral...... 217

76 Aya Adra

Summary report systematic account of how country-level repression indices modulate the rela- I joined Anna Baumert’s Moral Courage tionships between different clusters of Research Group at the Max Planck collective action predictors, and actual Institute for Research on Collective engagement in such actions. I will inves- Goods in February 2018 as a doctoral tigate this question by employing survey candidate. Since then, I have published data from the second wave of the Global the work I carried out during my Mas- Barometer, which includes nationally ter’s studies, initiated three new central representative samples collected from projects for my PhD, and engaged in 93 countries between 2010 and 2013. multiple collaborations with researchers within and outside the group. In parallel, I have initiated a project aiming to investigate unexplored pre- My research is broadly centred around dictors of solidarity-based collective the dynamics of social justice and action, undertaken by advantaged group Contact change. Specifically, I have been inves- members in support of the disadvan- tigating various social psychological taged. Based on a survey of the liter- [email protected] mechanisms relevant for intergroup ature on intergroup meta-beliefs (i.e., relations and collective action, with an beliefs about the outgroup’s beliefs) https://www.coll.mpg.de/aya-adra eye out to mobilization by disadvan- and their substantial role in shaping taged groups in understudied contexts, intergroup relations, I reason that and solidarity by advantaged groups. meta-beliefs are a crucial missing piece Both of these streams of research in social psychological accounts of resonate with the concept of moral solidarity-based collective action, since courage, albeit at the collective level. solidarity inherently involves protesting for the outgroup. In the context of racial My Master’s thesis investigated social inequality in the U.S., we focused on psychological predictors of collective three meta-beliefs that White Americans action tendencies among migrant do- could hold: responsibility, inactivity, and mestic workers in Beirut, Lebanon. The allyship. In two studies, now published findings of this work, now out in Adra, in Adra, Li, and Baumert (2020), in a Harb, Li, and Baumert (2019), highlight special issue of the European Journal the shortcomings of social psycho- of Social Psychology entitled “Solidarity logical research on collective action, in the Spotlight: Understanding Allies‘ most of which has been undertaken in Participation in Social Change”, we democratic Western countries, where found that the endorsement of inactive protesters are relatively immune to state and responsible meta-beliefs predict- repression. The results demonstrate that ed higher collective action tendencies some consistently supported pathways among low White identifiers, mediated to collective action in the literature by feelings of guilt and an obligation to seem to break down in highly repressive act. Conversely, we found that both pre- contexts. Based on this initial evidence, dicted lower collective action tendencies I have started a project exploring the among high White identifiers, mediated ways in which predictors of participation by a perceived unfairness. Finally, we in collective action diverge in differen- found that ally meta-belief was posi- tially repressive contexts. By bringing to- tively associated with collective action gether insights from social psychology, tendencies, regardless of identification. sociology, and political science, in Adra, These findings highlight the importance Li, and Baumert (work in progress (a)), I of the meta-perspective in understand- am developing and subsequently testing ing solidarity-based collective action, a theoretical framework to provide a and inform practical recommenda-

77 D. Research Portraits

tions for activists looking to increase ploring how Americans respond to news From Moral Judgement (through Harm) to support against intergroup inequality reports describing anti-Muslim and Moral Courage (with Halmburger, A., Li, M., Sasse, J. and Baumert, A.) among the ranks of the advantaged. anti-Hispanic discrimination as having Moral Psychology: From Neurons to Norms, either increased or remained largely Beirut, Lebanon My third main project lies at the inter- unchanged. In the second project, we April 2018 section of the first two, as it explores are studying the psychological under- Victims to Rebels: Testing the Social Identity the ways in which advantaged group pinnings of engagement in political Model of Collective Action among Migrant members react to the experience or resistance in the context of three social Domestic Workers in Lebanon (invited) (with witnessing of negative consequences movements facing state repression, in Harb, C., Li, M. and Baumert, A.) against their ingroup, in response to Hong Kong, Chile, and Lebanon. I also 51st Congress of the German Psychological Society (DGPs), Frankfurt, Germany their participation in solidarity-based had the pleasure of visiting Colin Leach, September 2018 collective action in support of the Professor of Social Psychology and disadvantaged. In Adra, Li, and Baumert Africana Studies at the University of 2019 (work in progress (b)), I am investigating Columbia in the City of New York, for a this question in the context of the Black few months at the end of 2019. During Collective Action Tendencies among Disad- vantaged and Advantaged Group Members Lives Matter movement which, in the that time, we initiated a project together. (invited) wake of the killing of George Floyd, an In Adra and Leach (work in progress), we Social Psychology colloquium, Clark Univer- unarmed black man, by a police officer are investigating black and white Ameri- sity in Minneapolis, Minnesota, on 25 May cans’ reactions to images of Black Lives November 2019 2020, has sparked protests across the Matter protests, which diverge in terms 2020 United States. The resulting collective of their racial and social composition. actions were largely met with brutality What they think of us: Meta‐beliefs and against movement participants by a solidarity‐based collective action among the advantaged (invited) (with Li, M. and militarized police force, resulting in Publications (since 2017) Baumert, A.) multiple images and videos of the police 19th General Meeting of the European Asso- using disproportionate force against Articles in Peer-Reviewed Journals ciation of Social Psychology protesters, including white targets of Adra, A., Li, M. and Baumert, A. (2020). What July 2020 (postponed) police violence. The broad idea is to un- they think of us: Meta‐beliefs and solidarity‐ based collective action among the advan- derstand how different groups of white taged. European Journal of Social Psychology. Fellowships and Grants Americans react to such experiences or witnessing, and how these reactions Adra, A., Harb, C., Li, M. and Baumert, A. Open Society Foundation OSIRG Alumni Com- (2019). Predicting collective action tendencies munity Grant (in collaboration with Ghina Abi relate to their willingness to engage (or among Filipina domestic workers in Lebanon: Ghannam), awarded to support the research continue engaging) in solidarity. This is Integrating the Social Identity Model of Collec- project “Understanding the Social Psychologi- an important question, seeing as how tive Action and the role of fear. Group Process- cal Dynamics Shaping the Lebanese Uprising” minority-led social movements often es and Intergroup Relations, 23, 967-978. (March 2020 – now). garner support from majority allies, and EASP Postgraduate travel grant, awarded to these allies are subsequently likely to support a research visit to work with Prof. Lectures and Presentations Colin Leach at Columbia University in the City face different forms of costs for their of New York (September 2019 – December participation. We are currently planning (since 2017) 2019). the first study of this project, in which we will collect data from a politically rep- 2018 resentative sample of white Americans, Professional Activities to tap into the psychological correlates Victims to Rebels: Testing the Social Identity Model of Collective Action among Migrant Ad-hoc reviewer for of experiencing or witnessing solidar- Domestic Workers in Lebanon (with Harb, C., Group Processes and Intergroup Relations, ity costs imposed on the advantaged Li, M. and Baumert, A. Journal of Experimental and Social Psycholo- Political Psychology pre-conference, Society ingroup, by members lying on different gy, Social Psychology, Cyberpsychology: Jour- for Personality and Social Psychology’s Annu- sides of the ideological spectrum. nal of Psychosocial Research on Cyberspace. al Convention, Portland, OR February 2018 Alongside these three main corner- stones of my PhD, I am collaborating From Moral Judgement to Moral Courage with Anna Baumert, Mengyao Li, and (with Halmburger, A., Li, M., Sasse, J. and Baumert, A.) several other local and international Justice and Morality pre-conference, Society researchers on two broad projects. for Personality and Social Psychology’s Annu- In one of these, we are investigating al Convention, Portland, OR reactions to normative change, by ex- February 2018

78 Amalia Álvarez Benjumea

Summary Report terrorist attacks in online hate speech towards refugees in contexts where a My general research interests focus on descriptive norm against the use of hate conditions under which social norms speech is strong to contexts in which change and emerge, particularly the the norm is ambiguous because partici- effects of social feedback and con- pants observe anti-minority comments. textual information on perception and We find that prejudice is more likely to conformity to social norms. Most of my be voiced after Islamist terrorist attacks work has been concerned with social only if the perceived social acceptability norms stigmatizing the overt expression of expressing prejudice is also affected. of prejudice, such as racism, xenopho- bia, or sexism. Social norms against the Furthermore, in two separate studies, I public expression of views considered look at the dynamics of normative ero- politically incorrect have developed sion using the same experimental para- over the last decades and constitute a digm. Álvarez Benjumea (in preparation) Contact powerful deterrent of the expression of investigates how observing xenophobic prejudice in modern societies. How- content in an online platform prompts [email protected] ever, these norms have been under individuals also to leave racist mes- threat in recent years with the rise of sages. Participants exposed to norm https://www.coll.mpg.de/ hate speech online and the prolifera- violations were more prone to express amalia-alvarez-benjumea tion of populist rhetoric in politics. anti-immigrant views and use hateful language. However, the effect was more In one line of research, we investigate pronounced for those more likely to hold the relationship between social norms anti-immigrant attitudes privately. In a and hate speech in online settings. In second study, Álvarez Benjumea (2020), Álvarez Benjumea and Winter (2018), we looks at whether exposure to anti-immi- set up an original experimental online grant sentiment in the online context af- forum in which we implement different fects the willingness to support an open- social-norm interventions aimed at ly anti-immigration party. Overall, the reducing online hate speech, such as study finds no evidence that exposure to censoring hateful content or letting oth- xenophobic content affects the willing- er users counter hate speech. We find ness to support anti-immigrant policies. that moderate censoring decreases the I also find that women are particularly likelihood of other users voicing overtly reluctant to donate after the anti-immi- hateful comments, while extreme cen- grant comments raised normative con- soring might have the opposite effect. cerns. My PhD thesis, “The Spreading We find no evidence of counter-speaking of Hostility: Unravelling of Social Norms affecting online hate speech. Overall, in Communication”, builds on this line the study shows that hate speech is of research and presents an up-to-date context-dependent, and descriptive portrait of the determinants of how norms, i.e., what others do, matter. social norms affect online hate speech. I successfully defended my thesis in Au- Using the same online platform, Álvarez gust 2019 at the University of Cologne. Benjumea and Winter (under review), look at the role of social norms in In a second line of research, Álvarez containing surges of prejudice after Is- Benjumea, Winter, and Zhang (in pre lamist terrorist attacks. We exploit data paration) look at the effect of Donald collected about the occurrence of two Trump’s 2020 presidential campaign consecutive Islamist terrorist attacks in social norms governing hate speech in Germany, the Würzburg and Ans- against minorities. It has been argued bach attacks, in July 2016. The natural that the election of Donald Trump as a experiment compares the effect of the president known for his use of inflam-

79 D. Research Portraits

matory rhetoric, has emboldened those Coordination Devices: The Moderating Effect Uncovering Hidden Opinions: The Contagion prejudiced views and caused a rise in of Group Identity. of Anti-immigrant Views Mittelbaukolloquium, Mannheim Centre for hate speech. Beginning in the summer Álvarez Benjumea, A., Winter, F. and Zhang, European Social Research (MZES), Mannheim of 2020, we will recruit a nationally rep- N. Tracking the Trump Effect: A Long Term 9 May 2019 Study of How Political Campaigns Change resentative sample of participants who the Unsayable. will be asked to rate the normativity of a Uncovering Hidden Opinions: The Contagion of Anti-immigrant Views set of statements about different minori- Álvarez Benjumea, A., Hillenbrand, A., Winter, F. and Zhang, N. Risk Perception and Norma- 12th Conference of the International Network ty groups. Using this design, we intend tive Change During the COVID-19 Outbreak. of Analytical Sociologists (INAS), St. Peters- to investigate the long-term dynamics of burg normative change and to compare the 1 June 2019 changes in ratings on comments about Lectures and Presentations Uncovering Hidden Opinions: The Contagion (likely) targeted vs. non-targeted groups. of Anti-immigrant Views (since 2017) Centro de Ciencias Humanas y Sociales Finally, in a different line of research, (CCHS) del CSIC, Madrid 5 June 2019 Álvarez Benjumea, Hillenbrand, Winter, 2017 and Zhang (in preparation) study the Uncovering Hidden Opinions: The Contagion Normative Change and Culture of Hate: impact of a sudden drop in media atten- of Anti-immigrant Views A Randomized Experiment in Online tion towards the COVID-19 outbreak in 2nd Conference of the The Academy of Communities Sociology (AS), Konstanz the USA on personal attitudes towards 10th JDM Meeting, Bonn 26 September 2019 health-promoting norms. The Black 1 June 2017 Lives Matter protests after the killing of 2020 Normative Change and Culture of Hate: George Floyd on 25 May 2020 caused A Randomized Experiment in Online A Randomized Experiment in Online a sudden shift in media attention, while Communities Communities 10th Conference of the International Network the condition of the outbreak remained Summer Institute in Computational Social of Analytical Sociologists (INAS), Oslo unaffected. We argue that this shift in Science Maastricht (SICSS-Maastricht), 8 June 2017 focus caused people to relax their atti- Online 22 June 2020 tudes towards health-promoting norms Normative Change and Culture of Hate: immediately after the killing of George A Randomized Experiment in Online Floyd, and that those attitudes continue Communities Swiss Sociological Association (SSA), Zurich Scholarships and Awards to weaken in the period thereafter. 23 June 2017 European Sociological Association (ESA) PhD Summer School Scholarship 2017 2018

Publications (since 2017) When Do Terrorist Attacks Increase Hate? Evidence from a Natural Experiment Professional Activities Articles in Peer-Reviewed Journals XIX ISA World Congress of Sociology, Toronto Reviewer for Álvarez Benjumea, A. (2020). Exposition to 19 July 2018 Xenophobic Content and Support for Right- Journal of Economic Psychology, American wing Populism: The Asymmetric Role of Gen- When Do Terrorist Attacks Increase Hate? Sociological Review, American Political Sci- der, Social Science Research, 92, no. 102480. Evidence from a Natural Experiment ence Review, PLOS One Seminar at the Department of Political Álvarez Benjumea, A. and Winter, F. (2020). Science of the Autonomous University of The Breakdown of Anti-Racist Norms: A Barcelona, Barcelona Large-scale Replication Initiatives Natural Experiment on Normative Uncertain- 29 November 2018 ty after Terrorist Attacks. PNAS, 117(37), The Crowdsourced Replication Initiative: 22800–22804. 2019 Investigating Immigration and Social Policy The Breakdown of Anti-Racist Norms: Preferences, organized by N. Breznau, E. M. Álvarez Benjumea, A. and Winter, F. (2018). Rinke, A. Wuttke Normative Change and Culture of Hate: An A Natural Experiment on Hate Speech after Experiment in Online Environments. European Terrorist Attacks Sociological Review, 34(3), 223-237. I Jornadas Experimentos en Sociología y política, Sevilla 29 January 2019

Work in Progress Asymmetric Contagion of Anti-immigrant Álvarez Benjumea, A. Uncovering Hidden Views: The Role of Gender in the Effect of Opinions: The Contagion of Anti-immigrant Normative Concerns Views. 6th International Meeting on Experimental and Behavioral Social Sciences (IMEBESS), Álvarez Benjumea, A., Freund, L., Luckner, Utrecht K. and Winter, F. (2018) Public Signals as 3 May 2019

80 Zvonimir Bašić

General Overview age and social-image concerns are important drivers of behavior as early I am a Senior Research Fellow at the as seven to eight years of age; however, Max Planck Institute for Research on this is valid only for boys. Finally, in my Collective Goods. I joined the institute largest and most recent project on this in October 2017 as a PhD student, and topic (Bašić, Bindra, Glätzle-Rützler, have since become a Senior Fellow after Romano, Sutter, and Zoller; work in obtaining my doctoral degree from the progress), we have studied the ontogeny Bonn Graduate School of Economics of cooperation in young children (3-6 in December 2018. My research over years of age). Specifically, we conducted the last couple of years can best be an iterated prisoner’s dilemma game organized into three fields: i) develop- with almost 1000 children and have ment of economic preferences and implemented four between-subject behavior in childhood and adolescence; treatments that allow us to investigate ii) the effects of image concerns and the behavioral effects of three evolu- Contact norms on economic behavior; and iii) the tionary pillars of cooperation: direct heterogeneous effects of incentives on reciprocity, indirect reciprocity, and [email protected] performance. third-party punishment. The study offers a multitude of findings and key insights https://www.coll.mpg.de/zvonimir-basic Development of Economic Preferences for practice on how to increase coop- and Behavior in Childhood and Adoles- erative behavior in future generations. cence The Effects of Image Concerns and I have three projects focusing on the Norms on Economic Behavior given topic, where I investigate the development of prosocial behavior and I have several projects in this field. the underpinning mechanisms which Together with my co-authors, I investi- support it. In Bašić et al. (2020), we gated the influence of self-image and investigated the development of egali- social-image concerns on prosocial tarian norm enforcement in childhood behavior in one project (Bašić, Falk, and and adolescence. More specifically, Quercia; work in progress), and on lying we adapted the most commonly used in another (Bašić and Quercia; 2020). third-party punishment game and ran We show that both self-image and so- an experiment with 635 children and cial-image concerns are relevant drivers adolescents. Among several findings, of prosocial behavior. In contrast, while we observe that children start enforcing social-image concerns work as a valid the egalitarian norm at the age of 11-12, driver in the lying domain, self-image and that children become more gener- concerns seem to be a much weak- ous at the same time as the egalitarian er motive, which challenges popular norm enforcement emerges. In Bašić, opinion in the lying literature. In Bašić Falk, and Quercia (work in progress), and Verrina (2020), we investigated the we have examined the influence of predictive value of personal and social self-image and social-image concerns in norms in economic contexts. In line with childhood and adolescence. In particu- our simple utility framework, we show lar, we manipulate the observability and that personal norms – together with self-awareness as the mediators of a social norms and monetary payoff – are person’s focus on their own public and strong predictors of economic behavior private selves, respectively, with children across a variety of economic settings. and adolescents between 7 and 14 Moreover, we find that social-image con- years of age. We find markedly different cerns heighten the relevance of social results across genders. Both self-im- norms, but do not diminish the relevance

81 D. Research Portraits

of personal norms, and that personal ment in Childhood and Adolescence. Journal The Influence of Self and Social Image Con- and social norms are complements in of Economic Behavior & Organization, 179, cerns on Lying 667-680. Inaugural Conference of the Experimental predicting behavior. Economics Group at MPI, Bonn May 2018 Working Papers The Heterogeneous Effects of Incentives on Performance Bašić, Z. and Verrina, E. (2020). Personal Self-image, Social Image and Prosocial norms — and not only social norms — shape Behavior economic behavior. MPI Discussion Paper 11th Maastricht Behavioral Experimental Together with my co-authors, I am 2020/25. Economics Symposium, Maastricht University currently gathering data for a large-scale June 2018 Bašić, Z. and Quercia, S. (2020). The Influence lab-in-the-field study conducted in high of Self and Social Image Concerns on Lying, The Influence of Self and Social Image Con- schools, where we investigate how MPI Discussion Paper 2020/18. cerns on Lying different incentive schemes provoke Economic Science Association (ESA) World different performances for various Meeting, Berlin individuals (Bašić, Bortolotti, Cappelen, Work in Progress June–July 2018 Gneezy, Salicath, Schmidt, Schneider, Bašić, Z., Bindra, C. P., Glätzle-Rützler, D., 2019 Sutter, and Tungodden; work in prog- Romano, A., Sutter M. and Zoller, C. (work in ress). In particular, we investigate which progress). The Roots of Cooperation. Self-image, Social Image and Prosocial Behavior types of people – with regard to their Bašić, Z., Bortolotti, S., Cappelen, A., Gneezy, relevant demographics, preferences, and MPI Bonn, MPI Munich and Innsbruck Univer- U., Salicath, D., Schmidt, S., Schneider, S. sity workshop, University of Innsbruck traits – best respond to which types of O., Sutter, M. and Tungodden, B. (work in February 2019 incentive scheme. progress). Heterogeneity in Effort Provision: Evidence from a Lab-in-the-Field Experiment. Self-image, Social Image and Prosocial Bašić, Z., Falk, A. and Quercia, S. (work in Behavior Research Agenda progress). The Influence of Self and Social Workshop on Experimental and Behavioral Image Concerns in Childhood and Adoles- Economics, MPI Bonn My research agenda for the future cence. May 2019 focuses on the aforementioned topics, Bašić, Z., Falk, A. and Quercia, S. (work in as I plan to work further on the heteroge- Croatia that We Need – View from Abroad progress). Self-image, Social image and Presentation and panel discussion, Universi- neous effects of incentives on perfor- Prosocial Behavior. ty of Split, Croatia mance, as well as the development of May 2019 economic preferences, where a lot of questions – especially in the develop- The Influence of Self and Social Image Con- Lectures and Presentations cerns on Lying ment of prosocial behavior – still remain 13th International Conference „Challenges of 2017 unanswered. Importantly, in the area of Europe“, University of Split, Croatia May 2019 image concerns and norms on econom- The Influence of Self and Social Image Con- ic behavior, I plan to study the func- cerns on Lying Self-image, Social Image and Prosocial 10th Maastricht Behavioral Experimental tioning and interplay of self-image and Behavior Economics Symposium, Maastricht University social-image concerns and personal and Economic Science Association (ESA) Europe- June 2017 social norms in light of recent signaling an Meeting, Dijon September 2019 models. One important question in this The Influence of Self and Social Image Con- area is the correctness and potential cerns on Lying 2020 biases in the updating of others’ types Economic Science Association (ESA) Europe- an Meeting, Vienna University of Economics based on their actions. While the up- and Business The Roots of Human Cooperation dating function is the very core of usual September 2017 Seminar talk, The University of Mainz January 2020 signaling models, little is known about how people actually update about others The Influence of Self and Social Image Con- cerns on Lying Personal norms — and not only social norms based on their behavior, and which Cultural Transmission and Social Norms 2, — shape economic behavior potential biases might emerge in this East Anglia University Online-Around-the-Clock Conference process. December 2017 September 2020 2018 Professional Activities Publications (since 2017) Self-image, Social Image and Prosocial Reviewer for Articles in Peer-Reviewed Journals Behavior The Fifth International Meeting on Experimen- Management Science, The Scandinavian Bašić, Z., Falk, A. and Kosse, F. (2020). The tal and Behavioral Social Sciences (IMEBESS), Journal of Economics, Journal of Economic Development of Egalitarian Norm Enforce- European University Institute, Florence Psychology, Journal of Behavioral and Experi- May 2018 mental Economics

82 Anna Baumert

Summary Report of intraindividual change in sensitivity to injustice in young adulthood. Results Throughout my research, I strive to inte- from intensive assessments of daily grate personality and social psycholog- experiences indicated that repeatedly ical perspectives on the understanding perceiving and thinking about unjust of subjective experience and behavior. victimization predicted intraindividual The guiding question is which psycho- increases in victim sensitivity, but not logical processes explain systematic in perpetrator sensitivity (Baumert, individual differences in social behavior. Maltese, and Lischetzke, work in prog- Together with an international group of ress; Maltese and Baumert, 2019). personality psychologists, I have laid out a process-oriented understanding of In my Max Planck research group, personality traits, proposing that traits which started in May 2017, our focus can be best understood as relatively is on the topic of moral courage. Moral stable interindividual differences in how courage manifests itself when initially Contact psychological processes unfold in rele- uninvolved witnesses stand up against vant situations (Baumert et al., 2017a, b; moral violations of others, despite the [email protected] Baumert, Schmitt, and Perugini, 2019). risk of personal costs. One major goal is Accordingly, my research is generally to establish moral courage as a “main- https://www.coll.mpg.de/anna-baumert focused on systematic interactions and stream” research topic in personality transactions between situational factors and social psychology. We have already and dispositional difference variables. taken a major step in this direction In terms of content, my main research by editing a special issue “Standing interest lies in the area of morality and Up Against Moral Violations” in the social justice. I have investigated pro- Journal of Experimental Social Psychol- cesses of social and affective informa- ogy (Baumert, Li, Sasse, and Skitka, tion processing and their role in shaping 2020). As another milestone, we have emotional and behavioral reactions developed an integrative framework to morality- and justice-related situa- of moral courage, which spans previ- tions, from the different perspectives ously disconnected lines of research, of perpetrator, victim, and bystander. highlighting the common antecedents and barriers, and their interrelation (Li, In the last three years, I have extended Sasse, Halmburger, and Baumert, under my research on dispositional sensi- review). In our empirical work, we study tivity to injustice with a cross-cultural the psychological processes that explain as well as developmental perspec- whether individuals intervene against tive. Across samples from Germany, the moral transgressions of others or Australia, and the Philippines, we remain inactive. In the projects that I su- found that dispositional sensitivity to pervise, we have focused on attentional, injustice from a victim’s perspective interpretational, as well as emotional was correlated with less cooperative processes (Sasse, Halmburger and Bau- behavioral decisions in a trust game, mert, forthcoming; tho Pesch, Fiedler resonating with the theoretical no- and Baumert, work in progress; Toribio tion that victim sensitivity involves a Flórez, Sasse and Baumert, work in motivation to avoid being exploited. progress). Moreover, we have included Conversely, sensitivity to injustice from the roles of personality dispositions, on the observer, beneficiary, or perpetrator the one hand, and societal contexts, on perspective was associated with less the other, in our research about anteced- self-oriented decisions, even under ents and barriers of moral courage. conditions of temptation (Baumert et al., 2020). In longitudinal datasets, I Besides conceptual integration, I strong- have tested hypotheses on processes ly advocate multi-method approaches

83 D. Research Portraits

in the study of psychological processes funding for a project on the effective- Psychology and Personality Science, 7, 899- that explain whether individuals inter- ness of human vs. AI-based intervention 907. vene against moral transgressions of against hate speech on the internet. Baumert*, A., Li*, M., Sasse*, J. and Skitka, L. others or remain inactive. We combine (2020). Standing up against Moral Violations: Psychological Processes of Moral Courage. Since 2017, my research has been experimental designs with quasi-ex- Journal of Experimental Social Psychology, perimental and correlational designs, recognized internationally as evidenced 88, 1-3. including longitudinal designs with by three awards that I received in per- Dang, J., Barker, P., Baumert, A., et al. (2020). intensive assessments. As assessment sonality and social psychology (2020 A Multi-Lab Replication of the Ego Depletion methods, we employ behavioral obser- Early Career Award of the International Effect. Social Psychology and Personality vations in reduced settings of econom- Society for Justice Research; 2020 Science. ic games, but also in more complex Award for Outstanding Contribution to Adra, A., Harb, C., Li, M. and Baumert, A. everyday situations in lab and field. We European Personality and Social Psy- (2019). Predicting Collective Action Tenden- also rely on retrospective self-reports chology, by the European Association for cies Among Filipina Domestic Workers in Lebanon: Integrating the Social Identity Mod- in qualitative interviews, as well as on Personality Psychology and the Europe- el of Collective Action and the Role of Fear. self-reported behavior and experiences an Association for Social Psychology; Group Processes and Intergroup Relations, 23, in so-called ambulatory assessment. 2017 William Stern Prize for Innovative 967-978. For example, in Halmburger, Izydorczyk, Research in Personality Psychology, Baumert, A., Schmitt, M. and Perugini, M. and Baumert (work in progress), in daily by the Personality and Psychological (2019). Towards an Explanatory Personality assessments across three weeks, we Assessment Section of the German Psychology: Integrating Personality Structure, Personality Process, and Personality Develop- collected reports of observed everyday Psychological Association). Also, since ment. Personality and Individual Differences, norm violations, their cognitive and October 2017, I am a tenure-track 147, 18-27. emotional appraisals, and reactions. In professor for Personality and Social Geissner, E., Knechtl, L., Baumert, A., Roth- open-ended descriptions of the inci- Psychology at TU Munich. Recently, I mund, T. and Schmitt, M. (2019). Schulderle- dents, participants reported a great received a job offer for a W3 professor- ben bei Zwangspatienten. [Guilt Experience variety of the kinds of violation, with a ship for Social and Personality Psychol- in Patients with Obsessive-Compulsive substantial range of severity and moral ogy at the University of Wuppertal. Disorder]. Verhaltenstherapie. relevance, as rated by independent Halmburger, A., Baumert, A. and Rothmund, T. samples. Participants differed mark- (2019). Seen One, Seen ‘Em All? Do Reports About Law Violations of a Single Politician edly in the frequency with which they Publications (since 2017) Impair the Perceived Trustworthiness of Poli- reported observing norm violations. Only ticians in General and of the Political System? in 24% of cases was someone reported Articles in Peer-Reviewed Journals Journal of Social and Political Psychology, 7, to have intervened. Within individuals (* shared first authorship) 448-477. across incidents, anger reactions, as Mõttus, R., ... Baumert, A., et al. (forthcom- Maltese, S. and Baumert, A. (2019). Linking well as appraisals of efficacy, responsi- ing). A Pragmatic and Pluralistic Personality Longitudinal Dynamics of Justice Sensitivity and Moral Disengagement. Personality and bility, and risk most strongly predicted Research: Different Goals Beget Different Individual Differences, 136, 173-177. intervention. As another example (Bau- Methods. European Journal of Personality. mert, Halmburger, Küchler, Sasse, and Sasse, J., Halmburger, A. and Baumert, A. Baumert, A., Schmitt, M., Perugini, M., John- son, W., Blum, G., … and Wrzus, C. (2017) Wagner, work in progress), we collected (forthcoming). The Functions of Anger in Moral Courage – Insights from a Behavioral Integrating Personality Structure, Personality data on personality dispositions from Study. Emotion. Process, and Personality Development. Euro- award-winners of moral courage prizes pean Journal of Personality, 31, 503-528. in Germany and Austria and compared Adra. A., Li, M. and Baumert, A. (2020). What They Think of Us: Meta-Beliefs and Solidari- Baumert, A., Schmitt, M., Perugini, M., John- them with demographically matched ty-Based Collective Action Among the Advan- son, W., Blum, G., … and Wrzus, C. (2017) reference groups. Most pronouncedly, taged. European Journal of Social Psychology. Working Towards Integrating Personality Pro- cesses, Personality Structure, and Personality morally courageous individuals stood Baumert, A., Buchholz, N., Zinkernagel, A., Development (Rejoinder). European Journal of apart from individuals who reported not Clarke, P., MacLeod, C., Osinsky, R. and Personality, 31, 577-595. having acted in a morally courageous Schmitt, M. (2020). Causal Underpinnings way in the past, the former exhibiting of Working Memory and Stroop Interference Control: Testing the Effects of Anodal and Book Chapters, Invited Comments, and heightened levels of moral attentive- Cathodal tDCS Over the Left DLPFC. Cogni- Research Reports ness and a disposition towards anger. tive, Affective, and Behavioral Neuroscience, 20(1), 34-48. Bablok, I., Baumert, A. and Maier, M. (2020). Implizite politische Einstellungsmessung. Extending the focus on moral courage to Baumert*, A., Maltese*, S., Reis, D., MacLeod, In: T. Faas, O. W. Gabriel and J. Maier (Eds.), its social consequences, together with C., Tan-Mansukhani, R., Galang, A. J. R., Politikwissenschaftlichen Einstellungs- und Dr. Sasse as Co-PI, and collaboration Galang, M. G. C. and Schmitt, M. (2020). A Verhaltensforschung. Handbuch für Wissen- Cross-Cultural Study of Sensitivity to Injustice partners from computer science at the schaft und Studium. Baden-Baden: Nomos, and Its Consequences for Cooperation. Social 615-635. TU Munich, I have received external

84 Blum, G. S., Baumert, A. and Schmitt, M. Under Review NOSI – Netzwerk der Open Science Ini- (2020). Personality Processes– From De- tiativen an psychologischen Instituten im scription to Explanation. In: J. F. Rauthmann Li, M., Watkins, M. H., Allard, A., Hirschberger, deutschsprachigen Raum (invited) (Ed.). The Handbook of Personality Dynamics G., Kretchner, M., Leidner, B. and Baumert, DGPs – ZPID – Workshop, “Datenmanage- and Processes. Elsevier. A. (under review). National Glorification and ment in der Psychologie: Anforderungen, Attachment Differentially Predict Support for Werkzeuge und Praxis”, Trier Baumert, A. and Sasse, J. (2018). Personality Intergroup Conflict Resolution: Scrutinizing 30 June 2017 as Interpersonal Dynamics: Understanding Cross-Country Generalizability. Within-Situation Processes and Their Recur- Moral Courage. Psychological Processes of rence Across Situations and Time. Invited Sasse, J., Baumert, A., Nazlic, T., Alrich, K. and Bystander Intervention against Norm Viola- Commentary. European Journal of Personality, Frey, D. (under review). Mitigation of Justice tions (invited) 32(5), 525-624. Conflicts: Effectiveness of Qualifying Subjec- University of Bonn, Social and Legal Psychol- tive Justice Views as an Intervention Tech- ogy lab (Prof. R. Banse). Bonn, Germany Halmburger, A., Rotmund, T., Baumert, A. and nique in Comparison to Empathy Induction. 3 July 2017 Maier, J. (2018). Trust in Politicians – Un- derstanding and Measuring the Perceived Toribio-Florez, D., Sasse, J. and Baumert, A. (under review). Third-party Punishment under Vorhersagen und erklären? Prozessori- Trustworthiness of Specific Politicians and entierte Persönlichkeitspsychologie am Politicians in General as Multidimensional Situational Uncertainty: The moderating role of Justice Sensitivity. Beispiel Sensibilität für Ungerechtigkeit Constructs. In: E. Bytzek, U. Rosar and M. Award presentation, Wilhelm Stern Award Steinbrecher (Eds.), Wahrnehmung – Persön- of the German Psychological Association’s lichkeit – Einstellungen. Psychologische Section Personality and Assessment, Munich, Theorien und Methoden in der Wahl- und Awards and Funding (since Germany Einstellungsforschung. Wiesbaden: Springer 4 September 2017 VS, 235-302. 2017) Wrzus, C., Quintus, M. and Baumert, A. 2020 – 2023 2018 (2018). Measuring Personality Processes „Personalized AI-based Interventions Against in the Lab and in the Field. In: V. Zeigler-Hill Online Norm Violations: Behavioral Effects “Sensitive Periods” in Adult Personality and T. Shackelford (Eds.), SAGE Handbook of and Ethical Implications”, funded by the Development? (invited) (with Maltese, S. and Personality and Individual Differences. Sage. Institute for Ethics in Artificial Intelligence at Lischetzke, T.) 231-256. Technical University Munich (500,000 €, in Preconference Personality Dynamics, Pro- collaboration with Prof. Grossklags) cesses, and Functioning, Society for Person- Baumert, A. and Blum, G. (2017) Employ- ality and Social Psychology, Atlanta, USA ing Situational Simulations to Understand 1-3 March 2018 Processes of Person-Situation Transactions. 2020 Invited Commentary. European Journal of Early Career Award from the International Society for Justice Research ISJR (500 €) Moral Courage (invited) (with Li, M.) Personality, 31(5), 441-502. University of Illinois at Chicago, lab meeting Pätzel, J., Baumert, A., Beierlein, C. and Dahle, Award for Outstanding Contribution to Prof. Linda Skitka, Chicago, USA K.-P. (2017). Die Ungerechtigkeitssensibili- European Personality and Social Psychology, 7 March 2018 tät-Skalen-8 (USS-8). In: U. Kobbé (Eds.), by the European Association for Personality Forensische Prognosen. Ein transdisziplinäres Psychology and the European Association for Justice Sensitivity – Processes Underlying Praxismanual. Lengerich: Pabst, 233-238. Social Psychology Pro- and Antisocial Behavior (invited) University of Ulm, Personality and Assess- ment lab (Prof. O. Wilhelm), Ulm, Germany 2017 Work in Progress 16 May 2018 William Stern Award for innovative research Baumert, A., Maltese, S. and Lischetzke, T. in personality psychology; awarded by the Moral Courage (invited) (with Halmburger, A Social-Cognitive Mechanism of Change Personality and Individual Difference section A.) and Development in Dispositional Victim of the German Psychological Association Beacon Project Final Meeting, Winston-Sa- Sensitivity. (DGPs) lem, NC, USA Baumert, A., Halmburger, A., Küchler, G., 28 June – 1 July 2018 2016 – 2018 Sasse, J. and Wagner, J. Personality Char- “Moral Courage”, funded by “The Beacon Proj- acteristics of Moral Courage: An Extreme How to Test Congruency of Personality ect on the Morally Excellent” (115,000 USD) Groups Approach. Factors? Experimental Approaches (invited) Expert meeting, “Conceptualizing and Halmburger, A., Izydorczyk, D. and Baumert, Assessing Personality: New Approaches to A. Did Someone Intervene? an Experience Lectures and Presentations Fundamental Questions”, sponsored by the Sampling Study on Daily Norm Violations. (since 2017) European Association for Personality Psy- Jayawickreme, E., Adler, J., Baumert, A., chology, Edinburgh, UK Beck, E. and Fleeson, W. Dynamic Personality 6-8 September 2018 Science. 2017 Social Justice Research (with Schmitt, M.) Experiences of Injustice at the Beginning Symposium, 51st congress of the Deutsche Revise & Resubmit of University Life. Development of Disposi- Gesellschaft für Psychologie, Frankfurt am tional Sensitivity to Injustice (invited) (with Main Tho Pesch, F., Fiedler, S. and Baumert, A. Maltese, S.) 15-20 September 2018 Seeing Moral Transgressions: Moral Wiggle University of Milan, Italy Room in Costly Punishment. R & R: Journal of 15 May 2017 Economic Psychology.

85 D. Research Portraits

Zivilcourage – Moral Courage: Psychologi- 1 week, 08/2018 In-Mind; Journal of Cross-Cultural Psychology; cal Determinants of Bystander Intervention International Max Planck Research School Journal of Experimental Social Psychology; Against Norm Violations (with Sasse, J.) “Uncertainty”. Lecture and practice. Person- Journal of Individual Differences; Journal of Symposium, 51st congress of the Deutsche ality and assessment related to fairness and Media Psychology; Journal of Personality; Gesellschaft für Psychologie, Frankfurt am altruism Journal of Personality and Social Psychology; Main Journal of Research in Personality; Journal of 15-20 September 2018 2017, May 15th Social and Personal Relationships; Journal of Introduction to Ambulatory Assessment. PhD Social Psychology; Nature Human Behavior; Discussant for Hot Topic Session Open Workshop. University of Milan, Italy Organizational Psychology Review; Personality Science and Individual Differences; Personality and 51st congress of the Deutsche Gesellschaft Social Psychology Bulletin; Personality and für Psychologie, Frankfurt am Main Master level Social Psychology Review; Philosophical Psy- 15-20 September 2018 chology; PlosOne; Political Psychology; Psy- 20 November 2017 chological Science; Psychology of Violence; Frauen in der Differentiellen Psychologie und NYU Berlin. Lecture invitation, “Social Psy- Social Justice Research; Social Psychology Psychologischen Diagnostik (invited) (with chology of Moral Courage”. Berlin. and Personality Science; Trends in Cognitive Junghänel, M. and Renner, K.-H.) Sciences German Psychological Association’s Section Alexander von Humboldt Foundation Personality and Assessment General Assem- Public Service bly, Frankfurt am Main, Germany German Research Foundation DFG 20 September 2018 2016-2022 John Templeton Foundation Psychologie der Zivilcourage (invited) Elected Member of the Executive Committee German National Academic Foundation Max Planck Day of Science, Schloss Ring- and Secretary of the European Association of berg, Germany Personality Psychology 19 October 2018 Since 2020 2019 Head of Task Force Diversity and Inclu- State-of-the-art Session on Moral Courage. sion (Fachgruppe Differentielle, Persön- Invited symposium (with Li, M., dal Cason, D. lichkeitspsychologie und Psychologische and Skitka, L. Diagnostik der Deutsche Gesellschaft für Fachgruppentagung Differentielle Psycholo- Psychologie) gie, Persönlichkeitspsychologie und psychologische Diagnostik, Dresden 16 September 2019 Professional Activities

Editorial Boards Teaching (since 2017) European Journal of Personality (Consultant TUM School of Education Editor, Guest Editor) Winter term 2017/18 Journal of Experimental Social Psychology Lecture, Pädagogische und Sozialpsychol- (Guest Editor, Special Issue on Moral Cour- ogie, Master Berufliche Bildung Integriert age, 2019) (Master level; 2 SWS) Personality Science (Associate Editor) Summer term 2018 Social Psychology (Associate Editor) Lecture and Practice, Test theory and Zeitschrift für Politische Psychologie (Member advanced methods, International Master of the Scientific Council) Research in Teaching and Learning Science (Master level; 4 SWS)

Winter term 2018/19 and winter term Memberships 2019/20 Association for Research in Personality (ARP) Lecture, Diagnostik und Evaluation, Studi- engänge des gymnasialen Lehramts (Master International Society for Justice Research level; 2 SWS; 100 % share) (ISJR) German Psychology Association (DGPs) Teaching outside of TUM European Association for Personality (EAPP) PhD level

03/2018 and 10/2018; 3 days per workshop Ad-hoc Reviews Teacher at PhD workshops of the German British Journal of Social Psychology; Diag- Association for Psychology’s section Person- nostica; European Journal of Psychological ality and Assessment Assessment; European Journal of Social Psychology; Games; Human Performance;

86 Stefania Bortolotti

Overview In another project (Bigoni et al., 2019b), I have investigated to what extent eco- Since December 2019, I am an Assistant nomic inequality may fuel frustration, Professor at the University of Bologna. possibly leading to antisocial behavior. I was a Senior Research Fellow at the We observe that the poor engage in institute from October 2017 till Decem- forms of antisocial behavior more often ber 2019. Prior to joining the EEG group, when reducing inequality would be safe I held positions at the universities of for the rich. These results cannot be Cologne and Bologna. My research rationalized by inequality aversion alone, in the past years has focused on four while they are in line with recent models main topics: (i) inequality, fairness that focus on anger as the result of the ideals, and dishonest behavior; (ii) the frustration of expectations. Another roots of economic preferences; (iii) paper studies the interplay between incentives and personal characteris- income and trust (Bigoni et al., 2018). tics; (iv) the gender gap in science. An online experiment with Koelle and Contact Wenner (in preparation) studies the role Inequality, Fairness Ideals, and of time preferences of honesty behavior. [email protected] Dishonest Behavior The Roots of Economic Preferences https://www.coll.mpg.de/ The steady increase in within-country stefania-bortolotti inequality is often acknowledged as Understanding persistence and chang- one of the most pressing problems of es of basic economic preferences and our society. The experimental toolbox prosociality across the life span and key can help us to understand better how personal characteristics is fundamental inequality is perceived and to what to informing theory and practice. In a extent it is justified and tolerated. Since representative sample of the Austrian 2018, I have worked on several projects population, Romano et al. (forthcoming) in this field – either by collecting new find that individuals used age as key data for existing projects or by pursuing information to conditioning behavior. new ideas. All age groups expect less cooperation In a study, I have tested fairness ideals from young partners than from older in a context in which the rich have and middle-aged partners. However, potentially acquired their fortunes relative to young adults, older adults are by means of cheating (Bortolotti et more cooperative with young partners. al., 2017). We found that the shadow In Bortolotti et al. (2020, submitted), of cheating strongly affects what is we shed new light on the relationship deemed fair, which is why societies between cognition and patience, by doc- characterized by substantial numbers of umenting that the correlation between cheating incidents might tend to display cognitive abilities and delay discount- polarized views about redistribution. ing is weaker for the same group of Together with Soraperra, Kölle, and individuals if choices are incentivized. Sutter (in preparation), we have extended the above paradigm to situations in Incentives and Personal Characteristics which the poor might lose their wealth because of the opportunistic behavior Understanding how to motivate people of another person (betrayal). We found to provide effort is of key importance that redistribution levels are significantly for success in many domains of life, higher when the misfortunes of the poor ranging from the educational sector to can be attributed to the opportunistic the labor market. Some people thrive behavior of another person rather than and express their best potential in to sheer luck. competitive environments, while others

87 D. Research Portraits

instead choke under such pressure. Bigoni, M., Bortolotti, S., Casari, M., Gambetta, Lectures and Presentations Some people are diligent and work D. (2019a). At the Root of the North-South Co- operation Gap in Italy: Preferences or Beliefs? (since 2017) hard regardless of the environment; Economic Journal, 129(619), 1139-1152. others need monetary rewards to be 2018 Bigoni, M., Bortolotti, S., Parisi, F., Porat, A. motivated. In an ongoing large-scale (2017). Unbundling Efficient Breach: An -Ex Economic Polarization and Antisocial Behav- lab-in-the-field experiment (with Bašić periment, Journal of Empirical Legal Studies, ior: An Experiment et al.), we strive to understand how 14(3), 527-547. SEET, Lecce sociodemographic characteristics, February 2018 personality traits, IQ, and preferences Revise & Resubmit Too Lucky to be True: Fairness Views under shape one’s performance under different the Shadow of Cheating incentive schemes. The experiment Bigoni, M., Bortolotti, S., Nas Ozen, E. (2019b). Economic Polarization and Antisocial Behav- Invited seminar at WHU – Otto Beisheim involves thousands of high-school ior: An Experiment. IZA Discussion Paper no. School of Management, Vallendar children and tests performance under 12553. R & R at GEB. March 2018 exogenously assigned incentives. These Betrayal, Risk Taking, and Redistribution data will then be coupled with a rich Working Papers IMEBESS, Florence dataset on individual characteristics. May 2018 Bigoni, M., Bortolotti, S. and Rattini, V. (2018). A Tale of Two Cities: An Experiment on Economic Polarization and Antisocial Behav- Gender Gap in Science Inequality and Preferences. IZA Discussion ior: An Experiment Paper no. 11758. ESA, Berlin Females remain largely underrepresent- June 2018 Bortolotti, S., Soraperra, I., Sutter M., and ed in STEM majors, and this difference Zoller, C. (2017). Too Lucky to be True: Fair- Too Lucky to be True: Fairness Views under in the choice of major subject can ness Views under the Shadow of Cheating. the Shadow of Cheating CESifo Working Paper no. 6563. explain a sizable portion of the gender MBEES, Maastricht wage gap. Only a small portion of the Bortolotti, S., Dohmen, T., Lehmann, H., June 2018 gender gap in science can be explained Meyer, F., Pignatti, N. and Torosyan, K. (2020, Economic Polarization and Antisocial Behav- by differences in grades or ability in submitted). Patience, Cognitive Abilities, and Cognitive Effort: Survey and Experimental ior: An Experiment math, while expectations about pecu- Evidence from a Developing Country. Lisbon Meeting on Economics and Political niary and non-pecuniary motives have Institutions been shown to play a crucial role in November 2018 explaining the gap. Yet, little is known Work in Progress Too Lucky to be True: Fairness Views under about possible gender biases in the Bortolotti, S., Kölle, F., Soraperra, I. and Sutter, the Shadow of Cheating belief formation process and how to M. (in preparation) Betrayal, Risk Taking, and Invited seminar at University of Turin alleviate this potential problem. In a Redistribution. December 2018 project with Bigoni and Kießling, we Bortolotti, S., Kölle, F. and Wenner, L. (in 2019 aim to contribute to this debate em- preparation). Delayed Honesty. pirically in three ways: (i) implement a Betrayal, Risk Taking, and Redistribution Bašić, Z., Bortolotti, S., Cappelen, A., Gneezy, ESA Abu Dhabi large-scale randomized intervention to U., Salicath, D., Schneider, S. O., Sutter, M. and February 2019 inform students’ and parents’ beliefs Tungodden, B. (ongoing) Heterogeneity in better about STEM majors; (ii) test Effort Provision: Evidence from a Lab-in-the- Too Lucky to be True: Fairness Views under Field Experiment. the effect of the intervention on be- the Shadow of Cheating Workshop on behavioral and experimental Bigoni, M., Bortolotti, S. and Kiessling, L. liefs – pecuniary and non-pecuniary economics – MPI Bonn (ongoing) Gender Gap in Science: The Effect returns – and how this translates into May 2019 of Role Models on Expected Pecuniary and university choices; and (iii) assess the Non-Pecuniary Returns. long-term effects (grades, drop-out, and Betrayal, Risk Taking, and Redistribution Invited seminar at University of Munich life satisfaction) of the intervention. June 2019 Grants Economic Polarization and Antisocial Behav- 2019 ior: An Experiment Publications (since 2017) Diligentia Foundation Research Grant: “Gen- Invited seminar at Wageningen University der Gap in Science”, Diligentia Foundation, PI June 2019 Articles in Peer-Reviewed Journals (Euros 36,000). Romano, A., Bortolotti, S., Hofmann, W., Prax- Cognition and Risk Preferences marer, M., Sutter, M. (forthcoming). Generos- ESA Vancouver ity and Cooperation Across the Life Span: A July 2019 Lab-in-the-Field Study. Psychology and Aging.

88 Teaching Summer term 2018 Experimental Economics: Methods University of Hamburg (graduate and postgraduate level)

89 D. Research Portraits

90 Philip Brookins

Summary Report research on experimental and behavioral economics, management science, My primary research interest is on the and operations research. In my final optimal design of contests and tour- year at the MPI, I accepted a job offer naments within the context of orga- from the University of South Carolina, nizational, personnel, and innovation a flagship university in the Southeast- economics. A contest is a strategic ern United States, where I have just situation in which several agents finished my first year as a tenure-track expend costly and irreversible effort, Assistant Professor of Economics. time, resources, etc., with the goal of winning a valuable prize or reward. Finally, as part of the research abroad The applications of contest theory do program of the MPI, I visited Harvard not end with organizational settings. University on three separate occasions Indeed, contests are everywhere: and became a visiting fellow at the Insti- animals compete for scarce resources, tute for Quantitative Social Sciences at Contact countries engage in warfare, lawyers Harvard University, as well as a visiting litigate opposing sides of a case, fellow at the Laboratory for Innovation [email protected] firms engage in advertising “wars” to Science at Harvard. During my three- increase market shares, and so on. year affiliation (and currently), I worked https://www.coll.mpg.de/phil-brookins on several projects regarding the opti- During my time as a PhD student at mal design of innovation contests. One the Florida State University, my re- notable project was my consulting work search was largely focused on the for the National Academies of Sciences, optimal design of group contests with Engineering, and Medicine (NASEM), heterogeneous players and contests where I wrote a survey on the current with incomplete information. During landscape and future directions of my three-year Senior Research Fellow inducement prizes. I advised the NASEM position at the Max Planck Institute council members to continue to explore (2016-2019), I continued my research the optimal design of contests, and sug- on incomplete information in contests gested that researchers especially focus and contests between groups, and on collecting empirical data to further additionally began exploring population our understanding of optimal contest uncertainty in a variety of competitive design. The principal investigators of situations. I am interested in such this NASEM project on inducement topics due to the reasonableness of prizes is currently under preparation. the assumptions. That is, certainty about the population, and complete Below, I describe in detail my most information about those within it, are active research areas and list all publi- too strong of assumptions. Economic cations, working papers, and works in modeling with “weak” assumptions progress. is a consistent theme of my research, one I hope to continue indefinitely. Population Uncertainty

During my stay at the MPI, I worked In many contests, the total number on and published several papers in of competitors is not known at the top journals for my fields of research time of making individual investment – experimental economics and eco- decisions. For example, an architectur- nomic theory. In fact, one of my largest al design student planning to submit projects that I worked on while at the blueprints for an upcoming contest to MPI is currently forthcoming in Man- build a new university library, whereby agement Science (Boosey et al., 2020), the student with the best submission one of the highest-quality outlets for wins a monetary prize, may know the

91 D. Research Portraits

maximum total number of competitors, lights the importance of informational groups theoretically. Group members i.e., the number of architectural stu- assumptions in economic modeling. first decide whether or not they wish to dents enrolled, but the precise number participate and actively exert effort to of students actively investing time Incomplete Information help their group win a valuable prize. and planning to make a submission is Under full disclosure, individuals know unlikely to be known ex-ante. Compared In many everyday situations, if not all, how many people are in their group and to knowing the total number of students information available to economic all other groups. Under within-group planning to submit a design, will she agents is incomplete. For example, a disclosure, individuals only know how invest more or less time in he r project? college graduate may be competing many people chose to enter in their own for a job with other recent graduates. group, but this information is not avail- Motivated by the example above, Considering the amount of geographical able in competing groups. Finally, under Boosey et al. (2017) conducted a series dispersion, it is unlikely that any given no disclosure, individuals only know of experiments to explore how individ- graduate will know the precise skill level that they chose to participate, but are uals behave in competitive situations of the others. In the case of complete otherwise unaware of participation deci- under population uncertainty. When the information, a low-skilled individual sions of all other individuals, and hence, number of competitors is known, theory may not even bother applying for the they simultaneously face within and predicts that individuals decrease their job, or significantly reduce effort, if he between-group population uncertainty. effort when the number of competitors knows the others are all highly skilled. For the benchmark case of contests be- increases. Under population uncertainty, However, when the skill levels of others tween individuals, we show that informa- however, this comparative static only are not publicly known, low-skilled tion disclosure always leads to a reduc- holds when the individual entry proba- graduates may exert effort preparing tion in aggregate investment. However, bility is high. When entry probabilities for the interview, but adjust this per this is no longer true in group contests: are sufficiently low, the probability of their beliefs about the distribution of Within-group disclosure unambiguously being the only participant in the contest skill levels amongst all competitors. raises aggregate investment, while the is much larger than zero, and therefore, effect of full disclosure is ambiguous. this possibility leads to a reduction in ef- Boosey et al. (2020) recently explored fort. The results of our experiment con- incomplete information in regard to the firm most of the theoretical predictions. disclosure of the number of contestants Publications (since 2017) actively participating in a cost: Active Boosey et al. (2019) theoretically ex- contestants either know how many Articles in Peer-Reviewed Journals plore population uncertainty in contests people they are competing against, or Boosey, L., Brookins, P. and Ryvkin, D. (2020). between groups, which has yet to be they do not. This research complements Information Disclosure in Contests with En- explored in the literature. In a group my research on population uncertainty, dogenous Entry. An Experiment. Management contest, population uncertainty can as when the number of participants Science, 66(11), 5128-5150. occur within the group, i.e., the number is not disclosed there is uncertainty Boosey, L., Brookins, P. and Ryvkin, D. (2019). of group members is unknown, as well about the population an individual is Contests Between Groups of Unknown Size. Games and Economic Behavior, 113, competing with. In contests between as across groups, i.e., the number of 756–769. competing groups is unknown. We ex- individuals, I ran an experiment to plore the former situation. Consider the test how such disclosure rules affect Brookins, P., Lightle, J. and Ryvkin, D. (2018). Sorting and Communication in Weak-Link decision faced by bipartisan supporters effort provision in contests with small Group Contests. Journal of Economic Behav- in the U.S. political race for presidency. and large entry fees. We do not find ior and Organization, 152, 64–80. From the viewpoint of a Democratic a difference in entry behavior across Boosey, L., Brookins, P. and Ryvkin, D. (2017). party supporter, the decision to invest disclosure rules, but do find significantly Contests With Group Size Uncertainty: time and resources with the hopes of in- higher investments when the opportuni- Experimental Evidence. Games and Economic creasing their party’s chance of success ty cost of entry is high and contest size Behavior, 105, 212-229. (i.e., winning the presidency) is likely a is disclosed. This difference is driven function of (i) the number of other Dem- by over-investment in contests with a Revise & Resubmit ocratic supporters and (ii) the number of small, publicly known number of players, Brookins, P., Ryvkin, D. and Smyth, A. Indefi- supporters in the opposing Republican compared to more restrained invest- nitely Repeated Contests: An Experimental party. Our main result is showing that ment in contests where the number of Study. R&R at Experimental Economics. individual investment is always lower players is uncertain and may be small. Brookins, P., Brown, J. and Ryvkin, D., Peer when group sizes are stochastic (i.e., Information and Risk-taking under Competi- population uncertainty) compared to In Boosey, Brookins, and Ryvkin (work in tive and Non-competitive Pay Schemes. R&R deterministic group size. This high- progress), I have also explored various at Theory & Decision. disclosure rules in contests between

92 Brookins, P. and Jindapon, P. Risk Preference Group all-pay auctions: An experimental Heterogeneity in Group Contests, R&R at the study Journal of Mathematical Economics. GATE-Lab Seminar, Lyon Nov 2017

Working Papers 2018 Boosey, L., Brookins, P. and Ryvkin, D. Entry in Information disclosure in contests with Group Contests. (submitted) endogenous entry: An experiment Brookins, P., Goerg, S. J. and Kube, S. Contests: Theory and Evidence, Norwich Self-chosen Goals, Incentives, and Effort (in June 2018 preparation for journal submission) Information disclosure in contests with endogenous entry: An experiment DICE Brown Bag Seminar, Düsseldorf Work in Progress Oct 2018 Brookins, P., Cerrone, C. and Ryvkin, D., k-pay 2019 Auctions. [additional data collection needed] Brookins, P., Lightle, J. and Ryvkin, D., Group Information disclosure in contests with All-Pay Auctions: An Experimental Study endogenous entry: An experiment [additional data collection needed] Technical University of Munich May 2019 Brookins, P., Matros, A. and Tzachrista, F., Se- quential Contests: Theory and Experimental Contests: What‘s the use? Evidence [currently writing the manuscript] National Academies of Sciences, Engineering, Brookins, P., Cerrone, C., De Chiara, A. and and Medicine, Washington D.C. Manna, E., Delegation vs. Communication May 2019 in Organisations. [design ready, but no data have been collected] Information disclosure in contests with endogenous entry: An experiment Behavioural Decision Sciences Workshop, Loughborough Honors May 2019 Accepted to attend the 2017 Lindau Nobel Laureate Meetings in Economics – Lindau, Germany – 21-26 August 2017

Lectures and Presentations (since 2017)

2017

Inde nitely Repeated Contests: An Experi- mental Study Workshop on Behavioral and Experimental Economics at LUISS, Rome March 2017

Inde nitely Repeated Contests: An Experi- mental Study Contests: Theory and Empirical Evidence at UEA, Norwich June 2017

Sorting and information disclosure in contests with heterogeneous players Laboratory for Innovation Science at Harvard, Cambridge, MA Oct 2017

Group all-pay auctions: An experimental study Southern Economic Association, Tampa Nov 2017

93 D. Research Portraits

94 Claudia Cerrone

1. Behavioral Games 2. Applications of Behavioral Economics My first area of interest is to explore, theoretically and experimentally, games I am broadly interested in applications between players with non-standard of behavioral economics to topics preferences. In Cerrone, Feri, and Neary that are relevant to the real world. (Revise & Resubmit at the American Economic Review), titled Ignorance is Ongoing Projects Bliss: A Game of Regret, I show how regret-averse people are affected by the in- First, I am currently interested in formation generated by the decisions of how matching mechanisms can be others. The paper is motivated by a sim- improved by accounting for people’s ple observation: An individual can only biases. Cerrone, Hermstrüwer, and experience regret if she learns about an Kesten (work in progress) will provide unchosen alternative. In many situa- the first experimental test of Kesten’s Contact tions, ranging from technology adoption efficiency-adjusted mechanism to to ordering food in a restaurant, learning assign students to schools, and use [email protected] about unchosen alternatives is possible behavioral economics to improve only if someone else chose them. We the mechanism’s performance. https://www.coll.mpg.de/claudia-cerrone develop and experimentally test a model of regret aversion where the probability Second, I am currently interested in how of learning about unchosen alternatives people’s biases affect decision-making depends on the decisions of others. in organizations. Cerrone, Hillenbrand, Klümper, and Schaube (work in prog- In Cerrone (2020, forthcoming at ress) will explore whether overconfi- Economic Inquiry), titled Doing It When dence leads one to delegate too little Others Do: A Strategic Model of Procras- of a joint task to a team member and, tination, I observe that several onerous if so, whether under-delegation per- activities that we tend to procrastinate sists or exacerbates over repeated are less onerous in the company of interactions. Brookins, Cerrone, De others. I develop a strategic model of Chiara, and Manna (work in progress) procrastination, the “procrastination will explore whether organizations game”, where present-biased agents should rely on delegation or communi- prefer to perform an onerous task when cation when agents are lying averse. others do, as they enjoy company. I use my procrastination game to establish Finally, Brookins, Cerrone, and Ryvkin when the company of a peer mitigates (work in progress) will explore a new overall procrastination, and thus how auction mechanism (k-pay auction) principals can match individuals to each that may help R&D firms to maximize other to reduce inefficient delay. An participation and competition. interesting result is the “avoidance of bad company”. The company of a worse Working Papers and procrastinator can push one to act Published Papers earlier, to avoid the additional temptation to procrastinate that “bad company” Cerrone, Hermstrüwer, and Robalo (Re- would generate. Thus, severe procras- vise & Resubmit at Games and Economic tinators can be used as a commitment Behavior) provides the first experiment device to mitigate own procrastination. exploring the impact of debarments

95 D. Research Portraits

on collusion in procurement auctions. son of time preference measures across Brookins, P., Cerrone, C., De Chiara, A. and We find that debarment decreases the monetary and effort domains. In Manna, E., Delegation vs. Communication in Organisations. collusion and bids, and its deterrent Cerrone, Chakraborty, Kim, and Lades effect increases with the length of the (work in progress, b), we will provide the Brookins, P., Cerrone, C. and Ryvkin, D., k-pay Auctions. exclusion. However, shorter debarments first direct test of a seminal model on reduce efficiency and increase the bids procrastination (Doing It Now or Later, Cerrone, C., Chakraborty, A., Kim, H. J., and of non-debarred bidders. This suggests O’Donoghue and Rabin, 1999), a yet Lades, L. K., Estimating Present Bias and Sophistication. that debarment can be used as an effec- untested pillar of behavioral economics. tive deterrent, but may have undesirable Cerrone, C., Chakraborty, A., Kim, H. J., and Lades, L. K., Doing it Now or Later: An Exper- effects if the exclusion is too short. iment. Publications (since 2017) In Cerrone and Engel (2019), we explore whether deciding on behalf of others Articles in Peer-Reviewed Journals Lectures and Seminar makes participants less selfish in Cerrone, C. (forthcoming). Doing It When a subsequent decision on behalf of Others Do: A Strategic Model of Procrastina- Presentations (since 2017) themselves, and thus can be used as tion, Economic Inquiry. 2017 a nudge. We find that, when deciding Cerrone, C. and Engel, C. (2019). Deciding on Discussant of the paper “Welfare Stigma in on behalf of others, participants make Behalf of Others Does Not Mitigate Selfish- the Lab: Evidence of Social Signalling” by J. very equitable decisions, but this ness: An Experiment, Economics Letters, 183, 108616. Friedrichsen, T. König, and R. Schmacker. does not mitigate selfishness in later Workshop on “Concern for status and social decisions on behalf of themselves. Cerrone, C. and Manna, E. (2018). Pay for image”, Berlin Performance With Motivated Employees, The June 2017 B.E. Journal of Economic Analysis and Policy, In Cerrone and Manna (2018), we study 18(1), 1935-1982. Sophisticated and Naïve Procrastination: An the optimal employment contracts of- Experimental Study Anderberg, D., Cerrone, C. and Chevalier, ESA World Meeting fered to “motivated” employees working A. (2018). Soft Commitment: A Study on San Diego, California in teams. Demand and Compliance, Applied Economics June 2017 Letters, 25(16), 1140-1146. In Anderberg and Cerrone (2017), we Anderberg, D. and Cerrone, C. (2017). Invest- Ignorance is Bliss: A Game of Regret explore how disappointment aversion ment in Education Under Disappointment ESA World Meeting San Diego, California affects students’ investments in educa- Aversion, Economics Bulletin, 37(3), 1533- 1540. June 2017 tion, depending on their academic ability. Doing It When Others Do: A Strategic Model In Anderberg, Cerrone, and Chevalier Revise & Resubmit of Procrastination (invited) ESRC Workshop on self-control and public (2018), we study the demand of universi- Cerrone, C., Feri, F. and Neary, P., Ignorance policy, University of Stirling ty students for soft, self-imposed com- is Bliss: A Game of Regret. R & R: American September 2017 mitment – in the form of early deadlines Economic Review. – and subsequent compliance behavior. Cerrone, C., Hermstrüwer, Y. and Robalo, P. 2019 Debarment and Collusion in Procurement Auctions. R & R: Games and Economic Ignorance is Bliss: A Game of Regret Behavior. (invited) 3. Experimental Work on TIBER 2019 Symphosium on Psychology and Time Preferences and Economics Working Papers Tilburg University Procrastination August 2019 Cerrone, C. and Lades, L. K., Sophisticated and Naïve Procrastination. (superseded by a 2020 I am currently working on two experi- new project with Chakraborty, A., Kim, H. J., and Lades, L. K. See below). mental projects on time preferences and Ignorance is Bliss: A Game of Regret procrastination. In Cerrone, Chakraborty, Southwest Economic Theory conference, UCSD, California Kim, and Lades (work in progress, a) we March 2020 propose a new method to estimate pres- Work in Progress ent bias and sophistication, using both Cerrone, C., Hillenbrand, A., Klümper, A. and Ignorance is Bliss: A Game of Regret monetary payments and effort tasks, Schaube, S., Delegation Under Overconfi- Internal seminar at UCSB, California March 2020 through a simple four-day experiment. dence. Ours will be the first project to provide a Cerrone, C., Hermstrüwer, Y., Kesten, O., measure of sophistication in the effort School Choice with Consent: An Experimental Study. domain, thus allowing for a full compari-

96 Teaching (since 2017) July–August 2019 Max Planck International Research School, Summer School 2019, Lecturer in Behavioral Economic Theory.

2020–2021 Financial Markets, Institutions and Banking, Middlesex University.

Professional Activities

Referee for Journal of Economic Theory; European Eco- nomic Review (x2); Economic Bulletin; Applied Economics Letters; The Manchester School.

Memberships Game Theory Society; Economic Science Association; Royal Economic Society.

Fellowships Higher Education Academy (UK), Associate Fellow

97 D. Research Portraits

98 Konstantin Chatziathanasiou

Summary Report order. We vary exogenously whether redistribution is feasible, and how it My time as a member of Christoph is organized. We find experimental Engel’s group ended in May 2018. evidence showing a positive effect of After four months as a trainee in the redistribution on economic efficiency ECB’s legal department, I joined Niels via the self-enforcement of property Petersen’s chair at the University of rights, and identify which status groups Münster as a Postdoc. The time at benefit more and which less. We find the MPI was wonderful and I am very that redistribution benefits all status happy to stay connected as a visiting groups as property disputes recede. It researcher. My work is mainly in the is most effective when transfers are not areas of constitutional law and ex- discretionary, but instead imposed by perimental law and economics. This some exogenous administration. In the report covers my work since 2017. absence of coercive means to enforce property rights, it is the higher-status Contact Book on Constitutional Stability groups, not the lower-status groups, who benefit from redistribution being [email protected] My book “Verfassungsstabilität” (“Con- compulsory rather than voluntary. stitutional Stability”) (Chatziathanasiou https://www.coll.mpg.de/ 2019) asks under which conditions a Chatziathanasiou, Hippel, and Kur- konstantin-chatziathanasiou constitution is more likely to be accept- schilgen (2020b) builds on the same ed by its addressees and, thus, stable. model. We study experimentally whether The question is developed through a the threat of an overthrow stabilizes case study on the last provision of the an institution. This is the main hy- Grundgesetz, which allows for its re- pothesis behind rights to resistance placement with a new constitution. The in constitutional documents. We test controversies around this provision lead the effect of the threat of overthrow by to basic topics of constitutional theory, introducing the possibility to reset the which I address through the lense of status-ranking that constitutes social experimental law and economics: I re- order through an onerous mechanism. construct the problem of a constitution’s We find that the mere option of over- stability in a game-theoretic framework, throw does not have a pacifying effect discuss the limitations of quantitative on low-status players. We also find that studies in comparative constitutional most high-status players do not adapt law, and then offer an experimental con- their redistributive behavior sufficiently tribution to constitutional theory (based to prevent overthrows. Where they do, on joint work with Svenja Hippel and however, groups prosper. The paper is Michael Kurschilgen). My main result currently prepared for submission. is that mere flexibility of an institution does not benefit its acceptance, which Comparative Constitutional Law rather hinges critically on criteria of fairness and equity. The book was reviewed The international discussion on compar- in Juristenzeitung and covered in the ative constitutional law has witnessed Frankfurter Allgemeine Zeitung (FAZ). a proliferation of empirical studies. In a set of papers with Niels Petersen, we Experiments on Social Order seek to evaluate the current state of affairs in different areas of research: the In Chatziathanasiou, Hippel, and Kur- consequences of and the reasons for schilgen (2020a), we model an economy constitutional design choices, the diffu- in which wealth is produced if players sion and effectiveness of constitutional voluntarily comply with the – efficient, rights, and the literature examining but inequitable – prevailing social judicial decision-making at apex courts.

99 D. Research Portraits

Petersen and Chatziathanasiou (2019) study and discuss its shortcomings. Journal Articles (not peer-reviewed) introduces the German-speaking audi- The article was covered in the FAZ. Chatziathanasiou, K. (forthcoming). ence to the field and to the methodologi- Sozio-ökonomische Ungleichheit: Ver- cal challenges. Petersen and Chatziatha- Whistleblowing fassungstheoretische Bedeutung, verfassungsrechtliche Reaktionen. Der Staat. nasiou (forthcoming) specifically targets the shortcomings of certain studies and A new line of my research is concerned Chatziathanasiou, K. (2020). Anfängerhausar- makes proposals for improvement. with whistleblowing in the public sector. beit – Öffentliches Recht: Verfassungsrecht und Europarecht – Der grenzüberschreit- Due to fear of retaliation, many illegal ende Bücherwurm. Juristische Schulung, 60, Socioeconomic Inequality practices within organizations remain 843–848. undisclosed by potential whistleblowers. Chatziathanasiou, K. (2019b). Der hungrige, Legal science, especially in Germany, Resolving such individual dilemmas ein härterer Richter? Zur heiklen Rezeption has yet to connect to the ongoing for the public good is a core task of einer vielzitierten Studie. JuristenZeitung, 74, debate on socioeconomic inequality. In regulation. A new EU directive aims 455–458. Chatziathanasiou (forthcoming), I dis- at establishing safe channels for the Petersen, N., Chatziathanasiou K. (2019) Em- cuss the relationship between socioeco- reporting of breaches of EU law in the pirische Verfassungsrechtswissenschaft. Zu Möglichkeiten und Grenzen quantitativer Ver- nomic inequality and constitutional law. private as well as in the public sector. So fassungsvergleichung und Richterforschung Theoretically, socioeconomic inequality far, however, whistleblowing has mainly [Empirical Constitutional Law], Archiv des can be a challenge to a constitution’s been discussed from the perspectives of öffentlichen Rechts (AöR), (144), 501–535. legitimacy and for democratic repre- labor, corporate, and criminal law. While sentation. Doctrinally, I focus on the the paradigms developed in private law Book (potential) limitation of poverty and are instructive, a public-law perspec- wealth under the Grundgesetz. A short tive must ask whether the suggested Chatziathanasiou, K. (2019). Verfassungssta- bilität. Eine von Artikel 146 Grundgesetz version of the paper was published in solutions fit the specific circumstances ausgehende juristische und (experimental-) the proceedings of the 59th Young Schol- of administrative and governmen- ökonomische Untersuchung [Constitutional ar Conference in Public Law (Chatziatha- tal tasks. Chatziathanasiou (work in Stability], Mohr Siebeck: Tübingen. nasiou 2019a) progress) discusses the challenges of introducing whistleblower protection in Book Chapter Constitutional History the public sector and civil service, and Chatziathanasiou (2019a), Soziale Ungle- lays the ground for future work. It was ichheit als Verfassungsherausforderung – Surprisingly, in the early Bundesrepublik, selected for the IACL Junior Forum. Das Sozialstaatsprinzip und die Begrenzung the Federal Constitutional Court was not von Armut und Reichtum [Social Inequality as considered a constitutional body on the Constitutional Challenge], in: P. B. Donath et al. (Ed.), Verfassungen – ihre Rolle im Wandel same level as President or Parliament. Publications (since 2017) der Zeit. 59. Assistententagung Öffentliches The Court had to claim that role for Recht Frankfurt am Main, Nomos: Baden- Articles in Peer-Reviewed Journals itself. It did so with a famous memo- Baden, 225–241. Petersen, N. and Chatziathanasiou, K. (forth- randum. In Chatziathanasiou (2020), I Towfigh, E. V. and Chatziathanasiou, K. coming). Empirical Research in Comparative examine the memorandum’s contribu- (2017). Ökonomische Aspekte der Constitutional Law – the Cool Kid on the Durchsetzung des Verbraucherschutzrechts. tion to the creation of the constitutional Block or all Smoke and Mirrors? International In H. Schulte-Nölke and Bundesministerium order, and discuss it from a historical, Journal of Constitutional Law. der Justiz und für Verbraucherschutz (Eds.), legal, and political perspective. The Chatziathanasiou, K. (2020). Die Status- Neue Wege zur Durchsetzung des Ver- article demonstrates the importance of Denkschrift des Bundesverfassungsgerichts braucherrechts, Springer, 97–126. informal actions by courts, and more als informaler Beitrag zur Entstehung der generally the contingency of constitu- Verfassungsordnung [The Status-Memo- randum of the Federal Constitutional Court], Reviews tional order. Rechtswissenschaft (RW), 11, 145–169. Chatziathanasiou, K. (forthcoming). Hadfield, Chatziathanasiou, K., Hippel, S. and Kur- Gillian K.: Rules for a Flat World. Why Humans Review of “Hungry Judge” Research schilgen, M. (2020a). Property, Redistribution, Invented Law and How to Reinvent It for a and the Status Quo: A Laboratory Study. Complex Global Economy. Der Staat, 59. Reportedly, judges are more likely Experimental Economics. Chatziathanasiou, K. (2018). Walter Scheidel: not to grant parole when their lunch Chatziathanasiou, K. and Leszczynska, M. The Great Leveler. Violence and the History break is close. The study to this point (2017). Experimentelle Ökonomik im Recht. of Inequality from the Stone Age to the is heavily cited, often in the context Rechtswissenschaft (RW), 8(3), 314–338. Twenty-First Century, International Journal of Constitutional Law, 16, 1376–1380. of machine-based tools for judicial Chatziathanasiou, K. (2017). Constitutions as decision-making. But the validity of the Chains? – On the Intergenerational Challeng- study is strongly disputed. In Chatzi- es of Constitution-Making. Intergenerational Justice Review, 10(1), 32–41. athanasiou (2019b), I introduce the

100 Working Papers How Law Should Cooperate with Other Public Service Disciplines Chatziathanasiou, K., Hippel S., and Kur- Humboldt Kolleg, Alexander von Humboldt Selection committees, Studienstiftung des schilgen, M. (2020b). Do Rights to Resistance Foundation, Chulalongkorn University deutschen Volkes [German Academic Schol- Discipline the Elites? An Experiment on the Bangkok, Thailand arship Foundation] (2017, 2019, 2020). Threat of Overthrow. MPI Discussion Paper 21 December 2019 2020/27. Judge in Moot Court and Essay Competition, 2020 University of Münster (2019, 2020).

Work in Progress Whistleblowing as a Challenge for Public Law, IACL Junior Forum Chatziathanasiou, K. (work in progress). National University of Singapore Whistleblowing as a Challenge for Public Law, 3 July 2020 – postponed in preparation.

Events Organized Awards Summer School “Crisis of the Rule of Law” in Tirana, Skopje, and Thessaloniki Fellow of the “Young ZiF” at the Center for Universities of Münster and Paris-Ouest- Interdisciplinary Research, Bielefeld (2019– Nanterre (funded by the German-French 2023). University) September 2020 – postponed

61st Young Scholar Conference in Public Lectures and Presentations Law on “Zugang zu Recht” [Access to (since 2017) Justice/Just Access] University of Münster 23–26 February 2021 2018

Experimentelle Ökonomik als rechtswis- senschaftliches Forschungsinstrument Teaching [Experimental Economics as a Research Tool Winter term 2018/19 for Legal Science] Integrationsmodul Politik und Recht I Law & Society Institute, Humboldt University [Introduction to Politics and Law I], Lecture, Berlin University of Münster 22 May 2018 Summer term 2019 Verfassungsstabilität [Constitutional Stabili- Integrationsmodul Politik und Recht II [Intro- ty], Conference “Was einen Staat zusammen- duction to Politics and Law II], Supervision, hält“ [What holds a state together] University of Münster Cusanuswerk, Weimar 2 November 2018 Deutsches und Europäisches Verfassungs- recht II [German and European Constitutional 2019 Law II – Basic Rights], Tutorial University of Münster Soziale Ungleichheit als Verfassungsheraus- forderung [Social Inequality as a Constitu- Winter term 2019/20 tional Challenge] Verwaltungsrecht und Verwaltungsprozess- 59th Young Scholar Conference in Public Law, recht [Administrative and Administrative Frankfurt am Main Procedural Law], Tutorial 22 February 2019 University of Münster

Die Status-Denkschrift des Bundesver- Integrationsmodul Politik und Recht I fassungsgerichts als Beitrag zur Entstehung [Introduction to Politics and Law I], Lecture, einer Rechtsordnung [The Status Memoran- University of Münster dum of the Federal Constitutional Court as a Contribution to the Formation of a Legal Summer term 2020 Order] Integrationsmodul Politik und Recht II [Intro- Conference “Eine Rechtsordnung entsteht“ duction to Politics and Law II], Supervision, [A Legal Order Emerges] University of Münster University of Münster 27 September 2019 Winter term 2020/21 Ökonomische Analyse des Rechts [Economic Analysis of Law], Lecture University of Münster

101 D. Research Portraits

102 Stefanie Egidy

Summary Report gic societal actors follow the regular judicial process set out in the applicable I returned from parental leave in March procedural rules governing the access 2018 and have been focusing on my to court and admissibility of claims. habilitation on “strategic litigation”. Selecting the right case, recruiting a Beyond this subject matter, my research sympathetic plaintiff, developing a me- is concerned with the question of how dia strategy, choosing the right litigation democratic states and their institu- tactic, and communicating appropriately tions react to pressure and change. throughout the proceedings are core It investigates how to safeguard the tasks of strategic litigants. This phe- resilience of the constitutional and nomenon has also been at the center of administrative order. Beyond a doctrinal legal, sociological, and political research and theoretical approach, I often take conceptualizing the efforts and contribu- an empirical as well as a comparative tions of strategic litigants as well as the legal perspective. A special focus lies on corresponding social movements. The Contact the concrete behavior of public actors other side of the equation consists of before the requirements set by the the legal system, which determines the [email protected] principle of democracy. This theme joins framework in which strategic litigants the different core areas of my research. act, and of the judges who decide how https://www.coll.mpg.de/stefanie-egidy cases move through the judicial system. Strategic Litigation My project aims to interconnect both sides and offer an empirically founded First and foremost, my habilitation theoretical perspective on our concept project (work in progress) engages with of judicial review and independence the phenomenon of “strategic litiga- within the democratic separation of tion”. In Germany, non-governmental powers system and its response to organizations have recently taken on strategic litigation. This research lies the goal of using courts to enforce in the intersection of scholarship on civil rights, emulating the landmark constitutional law, social movements, judgments in the United States, such judicial decision-making, and compar- as Brown v. Board of Education and ative procedural law. Building on these Lawrence v. Texas, respectively ending results, it undertakes a normative evalu- racial segregation in public schools and ation that emphasizes the constitutional decriminalizing sodomy. One promi- limits of this judicial practice, namely nent example is the lawsuit of Peruvian the principles of equal treatment, farmer Saúl Luciano Lliuya, prompted democracy, and judicial independence. and supported by environmental NGOs, against the energy conglomerate RWE Financial Markets, Central Banks, and before the German Regional Court in Constitutional Actors Essen, which has made international headlines. Even though these strategic Building on the insights of my disser- efforts are not new, their activist use tation on the democratic management poses new challenges to the traditional of financial crises, Egidy (2019a), I understanding of the role of the judicial have widened the scope of inquiry to system, which still largely emphasizes present a wider understanding of the the courts’ duty to find the right and interactions between financial markets, truthful legal answer to each case. central banks, and constitutional rules. One highly debated area is the level of Yet, strategic litigation has a very long, scrutiny that courts choose in order well-known, and intensely-researched to review central bank actions. When tradition in the United States. Strate- courts are asked to balance the conflict-

103 D. Research Portraits

ing interests and needs, the question sertation, Egidy (2019a), dealing with the Egidy, S. (forthcoming). Book Review, Horst, of which standard of review to apply challenge of a democratic management Johan, Transnationale Rechtserzeugung. Elemente einer normativen Theorie der Lex becomes the crucial issue. Taking a of the financial crisis of 2007-2009, Financiaria. Jus Internationale et Europaeum, comparative approach, I have under- with the research conducted together vol. 152. Tübingen: Mohr Siebeck 2019, Der taken a longitudinal study of different with Susan Rose-Ackerman and James Staat, 59, (2020). legal regimes regarding the reviewability Fowkes on procedural mechanisms in of central banks’ decisions and of the the domain of lawmaking, Rose-Acker- Books development of case law over time. To man, Egidy and Fowkes (2015). It will Bretthauer, S., Collin, P., Egidy, S., Spiecker analyze the reasons and determinants have three parts, which are currently gen. Döhmann, I. (forthcoming). 40 Klausu- underlying each justiciability regime, I work in progress. Two papers were sup- ren aus dem Verwaltungsrecht, 12th edition have linked the comparative analysis posed to be presented in two academic 2020. of judicial review to the design and conferences in May and August 2020, Lewandowsky, S., Smilllie, L., Garcia, D., Hert structure of central banks. Two current respectively, both unfortunately post- wig, R., Weatherall, J., Egidy, S., Robertson, R. papers focus on the U.S. Federal Re- poned until 2021 due to the COVID-19 E., O’Connor, C., Kzyreva, A., Lorenz-Spreen, serve (Egidy, 2019b) and the European crisis. They deal with the institutional P., Blaschke, Y., Leiser, L., (2020). Technology and democracy: Understanding the influence Central Bank (Egidy, work in progress) perspective of functioning democracies of online technologies on political behavior respectively. A third one will add a (Egidy, work in progress) and administra- and decision-making, Publications Office of normative perspective. Considering tive resilience (Egidy, work in progress). the European Union, Luxembourg, 174 p. the upheaval of the balance of powers The third project with Laurence O’Hara Egidy, S. (2019a). Finanzkrise und Verfassung between the European Central Bank, the undertakes an original empirical study – Demokratisches Krisenmanagement in Court of Justice of the European Union, trying to develop and test mechanisms Deutschland und den USA, Mohr Siebeck, 2019. and the German Federal Constitutional to improve the balancing of interests Court due to the GFCC’s most recent (Egidy & O’Hara, work in progress). In Rose-Ackerman, S., Egidy, S., Fowkes, J. (2015, 2018). Due Process of Lawmaking – judgment on the ECB’s PSPP program, many ways, democratic governance The United States, South Africa, Germany and I will apply and expand my research to needs to solve conflicts between the European Union (with Susan Rose-Acker- analyze and explore solutions to the cur- competing interests. A proportionality man and James Fowkes), Cambridge Univer- rent conflict (Egidy, work in progress). assessment is a commonly used tactic sity Press 2015, paperback 2018. – whether explicitly or implicitly – by Democratic Decline and Administrative all branches of government. We take a Book Chapters Resilience procedural approach and investigate Egidy, S. (forthcoming). Meinungsmanipula- how we can structure proportionality tion und Informationszugang in der digi- The functioning of democracies is assessments in a way that reduces bias. talen Demokratie – Counterspeech 2.0 als crucial to addressing the crisis of global empirisch fundiertes Instrument gegen Fake constitutionalism. Healthy institutions News, in: Lüdemann, J. and Hermstrüwer, Y. (eds.), Meinungsbildung im digitalen Zeitalter, are the essential pillars of a democracy. Publications (since 2017) Mohr Siebeck, 2020, 91–148. They form an intricate support structure Teichman, D., Talley, E., Egidy, S., Engel, C., for safeguarding the provision of collec- Articles in Peer-Reviewed Journals Gummadi, K. P., Hagel, K., Lewandowsky, S., tive goods, such as social peace, physi- Egidy, S. (forthcoming), Proportionality and MacCoun R. J., Utz S., Zamir, E. (2020). Insti- cal well-being, the protection of human Procedure of Monetary Policy-Making, Inter- tutions Promoting or Countering Deliberate rights, but also financial stability. De- national Journal of Constitutional Law, 2021. Ignorance: Engel, C. and Hertwig, R. (eds.), Ernst-Strüngmann Forum on: Deliberate Igno- spite their organizational structure, the Conference Proceeding rance, Choosing Not to Know, MIT University responsibility to lead these institutions Press, 275–298. falls to human decision-makers who Egidy, S. (2019b). Judicial Review of Central Bank Action: Should Europe Learn From the need to govern their citizens. My con- US?, in: European Central Bank (ed.), ECB Working Paper tributions use insights from behavioral Legal Conference 2019 – Building bridges: sciences with regard to both state ac- central banking law in an interconnected Egidy, S., Sunset Clauses – Ablaufdaten als tors and citizens to explain the reasons world, 53–76. strategische Instrumente des Gesetzgebers. behind the crisis of global constitutionalism. This will form the starting point to Reviews Work in Progress develop tools to solve these problems. Egidy, S. (forthcoming). Book Review, Gins- Central lines of inquiry are the formation burg, Tom/Rosen, Mark D./Vanberg, Georg Egidy, S., Strategische Prozessführung of trust in institutions, the role of infor- (eds.), Constitutions in Times of Financial (habilitation project). mation, and mechanisms to induce both Crisis, Cambridge University Press, 2019, International Journal of Constitutional Law Egidy, S., The European System of Central self-restraint and resilience. This larger 2020. Banks under Judicial Review. project combines the findings of my dis-

104 Egidy, S., Central Banking Under the Aegis of Lectures and Presentations Von Daten zur (richtigen) Entscheidung the Judiciary: The Proper Level of Review. Poster-Presentation, Research Group “Data (since 2017) Conference on Artificial Intelligence, North Egidy, S., Administrative Resilience. Rhine-Westphalian Academy of Sciences, Egidy, S., Institutions, in: Bezemek, Christoph 2017 Humanities and the Arts, Düsseldorf (with (ed.), Constitutionalism 2030, Hart publishing, Susanne Gössl, Kerstin Ludwig, Alexander originally 2020 – postponed due to COVID-19. The Potential for Strategic Litigation Before Scheuch, Raphael Wittkowski) the German Federal Constitutional Court October 2019 Egidy, S. & O’Hara, L., Structured Balancing of Workshop with Bruno S. Frey, Margit Osterloh, Interests – How Structured Decision-Frame- and Siegwart Lindenberg Handlungsoptionen für die Bundesrepublik works Affect the Rationality of Balancing Max Planck Institute for Research on Deutschland und die USA in den Finanzkris- Decisions in Constitutional Law. Collective Goods, Bonn en des 21. Jahrhunderts April 2017 Engel, C., Egidy, S., Hermstrüwer, Y., Hoeft, Forum für Zeitgeschehen: Boom und Speku- L., Langenbach, P., O’Hara, L. (Eds.), Ver lationsblasen – Die Weltwirtschaftskrisen Judicial Review of Central Bank Policies and haltenswissenschaftliche Analyse des öffent 1929/30 und 2007/08, Decisions in a Comparative Perspective lichen Rechts. Volkswagen-Stiftung, Hannover ECB Legal Research Programme 2017 November 2019 Seminar, Frankfurt a. M. May 2017 Kontrollaufgabe des Staates Scholarships, Prizes, KONTROLL|VER|LUST – Herausforderungen Decision-Making in Civil Disputes and und Chancen für Individuum, Technologie und and Honors Litigation Gesellschaft Workshop Judgment and Decision-Making, Research Conference of the Young Members, 2017 Max Planck Institute for Research on North Rhine-Westphalian Academy of Scienc- Collective Goods, Bonn es, Humanities and the Arts, Düsseldorf “Deutscher Studienpreis” Award, Körber Foun- June 2017 November 2019 dation (Second Prize, Section Humanities) 2018 The Exercise of Procedural Discretion by the “Dissertation Prize 2017” awarded by the Law German Federal Constitutional Court Faculty of the University of Würzburg Strategische Prozessführung – Mobili- Workshop on “Methods of Quantitative Text sierung von Recht vor dem Bundesver- Analysis”, Wissenschaftskolleg Berlin Dissertation Award of the Bavarian America fassungsgericht November 2019 Academy Symposium of the Hohbühl-Stiftung, Köditz bei Hof a. d. Saale Meinungsfreiheit und Informationszugang in Joint Dissertation Award of the Lower Fran- June 2018 der digitalen Demokratie conian Memorial Year Foundation for Science University of Bochum and the University of Würzburg Sunset Clauses – Sind Ablaufdaten strate- December 2019 gische Instrumente des Gesetzgebers? Honorary Ceremony on 3 April 2017 by the Colloquium Law and Economics, 2020 Minister of Justice of North Rhine-Westphalia University of Bonn for the 20 best graduates of the second state July 2018 Relationale Verträge – Eine rechtliche exam between Oct. 2015 and Dec. 2016 Perspektive (Comment to Hendrik Hakenes) Meinungsfreiheit und Informationszugang in Colloquium Law and Economics 2020 der digitalen Demokratie University of Bonn Arbeitskreis Medien- und Kommunikation- June 2020 Scholarship for Post-Doctoral Research in the srecht, Meinungsbildung im digitalen Zeitalt- United States, German Academic Exchange er: Instrumente und Instrumentenvergleich, 2. Rechtliche Organisation von Rechtsfindung Service (DAAD) Workshop, Humboldt-University Berlin (Comment to Ruth Weber, Die „Rechtsfind- October 2018 ungswerkstatt der Integration“) New York University School of Law, Emile ICON-S Germany Works-in-Progress Confer- Noël Postdoctoral Fellowship 2019 ence (virtual format) October 2020 Finanzmärkte im Konflikt von Transparenz Research Grants and und Geheimhaltung Panelist, Tech + Democracy Seminar Series Forum Junge Rechtswissenschaft, Centre for Cognition, Computation, & Mod- Academy Membership University of Tübingen elling 2017 January 2019 Birkbeck, University of London (virtual format) Research Grant, European Central Bank: Legal A Comparative Perspective: Central Bank Ju- October 2020 Research Programme 2017 dicial Review in the EU and the United States ECB Legal Conference 2019 – Building bridg- Strategic Litigation Before Courts – 2019–2023 es: Central banking law in an interconnected A Theoretical, Doctrinal, and Empirical world Study on Judicial Process Appointment to the Young Academy, North European Central Bank, Frankfurt a. M. Global/Emile Noël Fellows Forum Rhine-Westphalian Academy of Sciences, September 2019 New York University School of Law (virtual Humanities, and the Arts (including a finan- format) cial reward of 40,000 EUR) November 2020

105 D. Research Portraits

Teaching Winter term 2018/2019 Colloquium Advanced Urban Law Goethe University Frankfurt

Winter term 2019/2020 Colloquium Advanced Urban Law Goethe University Frankfurt

Summer term 2020 Colloquium Advanced Administrative Procedure Goethe University Frankfurt

Professional Service and Other Academic Activities 2019 – present Advisory Board, ICON.S German Chapter

2019 – present Young Academy, North Rhine-Westphalian Academy of Sciences, Humanities, and the Arts

Vice spokesperson, working group “science communication” Member of the selection committees for the Young Academy 2020 and 2021

Co-Organizer of the Young Academy Research Conferences 2019 and 2020

2015 – present Co-Organizer of the ECONTribute Law & Eco- nomics Workshop Series, bi-weekly research seminar with external guests, University of Bonn (Graduate School of Economics, Law Faculty), Max Planck Institute for Research on Collective Goods, Bonn

106 Christoph Engel

My own work is intimately tied to the Governing citizens is very different work of my group. The papers that from governing industry. In one way, it have been published in recent years, or is much harder. It is not too difficult for have been made available as working the law to supervise a small number papers, or are work in progress and of firms. Yet, it is very costly, and often sufficiently advanced to be mentioned, simply impractical, to supervise citi- are all covered by the group report. zens on a broad scale. No policeman I do not want to repeat that. Instead can notice whether a household truly I am using this ad personam report singles out waste that can be recycled, to put my current work into the per- rather than putting it into the dustbin. spective of my intellectual journey. On the other hand, governing citizens can be easier. Firms are under compet- It all started more than 20 years ago, itive pressure. This makes it difficult for when I received the enormous gift of them to ignore the effects of choices setting up what would later become the on profit. By contrast, it resonates with Contact Max Planck Institute for Research on experience that ordinary citizens are Collective Goods. The enterprise had not permanently comparing cost with [email protected] always been meant to be interdisciplin- benefit. Using once more the example ary, initially coupling law with political of separating waste in the household: at https://www.coll.mpg.de/engel science. The interdisciplinary make-up least in Germany this normative goal is made it natural to adopt an external reached rather well, although most peo- perspective on the law, and to inter- ple do not even know that the authorities pret it as a tool for governing society. could sanction them for not separating. We applied this approach to a classic collective good that had been (and still The five-year project on waste man- is) rarely studied from an interdisciplin- agement was policy-oriented. We have ary perspective: waste management. I offered explanations for the observed had spent nine years at the Hamburg achievements, and have suggested Max Planck Institute, and contributed further improvements (Engel 2002). Yet, to Ernst-Joachim Mestmäcker’s project for me, this project has also been an on the law and economics of telecom- eye-opener. If one analyses the law from munications. This experience gave us a governance perspective, much has a very helpful template. Yet, we quickly to be gained by adopting a behavioral found out that the seemingly obvious perspective. This is what has become parallel between the two subfields of the focus of our work ever since. We law only led us so far. Telecommuni- originally did not have the intention cations policy can largely deal with to generate our own evidence. Engel good regulatory targets. If it succeeds (2005) surveys the rich evidence (from in shaping the market behavior of the experimental economics and social major players, most of its legitimate psychology) from our governance normative goals are reached. The equiv- perspective. The glaring problem is alent approach is only partly sufficient richness. There are so many behavioral in the area of waste management. The effects! One has every reason to believe intended protection of the environment that they do not live in isolation, so that from harm done on the waste path, and their interaction has to be understood. recycling rather than destroying precious How shall legal policy ever understand, natural resources, can only be achieved let alone affect, the addressees of if citizens contribute their fair share. To their interventions? A major challenge mention only one prominent instance, is predictability. I have written the they must separate waste into fractions book to explain the challenge, and to that lend themselves to recycling. introduce the idea of two-step interven-

107 D. Research Portraits

tion. In the first step, in the respective 2018, Engel 2019, Engel and Weinshall Two further developments are worth domain, the law makes behavior more Margel, 2020). To my great satisfaction, mentioning. It has turned out that our predictable, and then reacts to it with however, my work has also found rec- work on behaviorally informed institu- the normatively desired intervention. ognition in other first-rate peer-reviewed tional design has an interesting cor- law journals such as the Journal of Legal relate in computer science. Together During this period of my work, I also Studies (Engel and Zhurakhovska 2017), with Nina Grgić-Hlača, I have started adopted a technique that used to be the Journal of Law and Economics (Bar- exploiting this opportunity, for the mo- more prevalent in psychology than in Gill and Engel 2016, Bar-Gill and Engel ment focusing on algorithmic decision economics, and have written a num- 2018), and Psychology, Public Policy, aids (Grgić-Hlača, Engel et al. 2019). ber of meta-studies to summarize the and Law (Engel, Timme et al. 2020), as A second big challenge for the behav- evidence quantitatively (Engel 2007, well as in economics journals such as iorally informed analysis and design Engel 2011, Engel 2012, Engel 2015b). the European Economic Review (Engel of institutions is (perceived or actual) This exercise has convinced me that, and Goerg 2018), Experimental Eco- ambiguity. Together with Rima Rahal, I all the richness notwithstanding, our nomics (Engel 2011), and the Journal have started to embrace eye-tracking as knowledge about behavioral effects in of Economic Behavior and Organization a technique for tracing mental pro- many respects is still too incomplete to (Engel 2014, Engel and Zhurakhovska cesses, in particular in judicial deci- be useful for legal policy-making. Not 2014, Engel and Kirchkamp 2019, Engel sion-making (Engel and Rahal 2019). least since, very understandably, the 2020), as well as in psychology journals behavioral disciplines do not necessar- such as Perspectives on Psychological Being the director of a Max Planck ily focus on the effects that are most Science (Engel 2015a, Hertwig and institute is one of the greatest priv- important for the law. If behaviorally Engel 2016), the Journal of Economic ileges one can have in academia. I informed institutional design was to Policy (Engel and Kurschilgen 2020), and am most grateful that I will still have succeed, we would have to generate the Journal of Behavioral Decision-Mak- the chance to exploit these excep- our own evidence. This meant a partial ing (Betsch, Lindow et al. 2014). tional opportunities for another five restructuring of the group. To be serious, years (and will, of course, not stop we needed to collaborate with experi- For the years to come, there is plenty with my own research thereafter). mental economists and psychologists of work to do in this vein. But we are on a daily basis. The lawyers would now at a point where we can also come have to tool themselves up so that they back to the challenge that disturbed me References could be functional in interdisciplinary at the start of the enterprise. Actually, Bar-Gill, O. and Engel, C. (2016). Bargaining in experimental teams. This would only behavioral effects are not only rich and the Absence of Property Rights. An Experi- work if, first and foremost, I was to interactive. Very often they are also ment. Journal of Law and Economics, 59(2), become an experimentalist myself. heterogeneous. Over the last years, I 477–495. have increasingly embraced the tech- Bar-Gill, O. and Engel, C. (2018). How to Pro- Such a transition does not happen niques provided by computer science to tect Entitlements. An Experiment. Journal of overnight. It took a few years before tackle this heterogeneity. At our grad- Law and Economics, 61(3), 525–553. the first experiments inspired by legal uate school, I have taught a course in Betsch, T., Lindow, S., Engel, C., Ulshöfer, research questions made it into good machine learning. I have developed an C. and Kleber, J. (2014). Has the World journals (see, for instance, Engel and estimator that overcomes the practical Changed? My Neighbor Might Know. Effects of Social Context on Routine Deviation. Kurschilgen 2011, Engel and Kurschilgen impossibility simultaneously to estimate Journal of Behavioral Decision Making, 28(1), 2013). We had the good fortune that the type space and choices conditional 50–66. the empirical legal movement was on type that had often prevented me Buijze, R., Engel, C. and Hemels, S. (2017). In- independently gaining momentum in the from analyzing the heterogeneity (Engel suring Your Donation. An Experiment. Journal U.S. This gave us the best audience we 2020). In some experiments, I have of Empirical Legal Studies, 14(4), 858–885. could have had for our specific behav- induced heterogeneity (Engel, Mittone et Eisenberg, T. and Engel, C. (2014). Assuring ioral/governance angle. It is therefore al. 2020). In others, I could infer the het- Civil Damages Adequately Deter. A Public no surprise that so many of my papers erogeneity from the data and show that Good Experiment. Journal of Empirical Legal Studies, 11(2), 301–349. have been published in the flagship it is the source of the normative problem journal of the movement, the Journal (Bar-Gill and Engel 2018). In one of the Eisenberg, T. and Engel, C. (2016). Unpacking of Empirical Legal Studies (Engel and latest manuscripts, organizing the type Negligence Liability. Experimentally Testing the Governance Effect. Journal of Empirical Kurschilgen 2011, Glöckner and Engel space helped us see that behavioral Legal Studies, 13(1), 116–152. 2013, Eisenberg and Engel 2014, Engel programs in a classic dilemma setting Engel, Christoph (2002). Abfallrecht und 2015b, Engel, Hennig-Schmidt et al. (a linear public good) are considerably Abfallpolitik. Baden-Baden, Nomos. 2015, Eisenberg and Engel 2016, Buijze, more complicated than extant theory Engel et al. 2017, Engel, Klement et al. suggests (Engel, Hausladen et al. 2020).

108 Engel, C. (2005). Generating Predictability. Expectations. An Experiment. American Law Engel, C. and Kurschilgen, M. (2020). The Institutional Analysis and Institutional Design. & Economics Review, 15(2), 578-609. Fragility of a Nudge. The Power of Self-set Cambrige, Cambridge University Press. Norms to Contain a Social Dilemma. Journal Engel, C. and Kurschilgen, M. (2020). The of Economic Psychology, 81, 102293. Engel, C. (2007). How Much Collusion? A Fragility of a Nudge. The Power of Self-set Meta-Analysis on Oligopoly Experiments. Norms to Contain a Social Dilemma. Journal Engel, C., Mittone, L. and Morreale, A. (2020). Journal of Competition Law and Economics, of Economic Psychology, 81, no. 102293. Tax Morale and Fairness in Conflict. An 3(4), 491-549. Experiment, Journal of Economic Psychology, Engel, C., Mittone, L. and Morreale, A. (2020). 81, 102314. Engel, C. (2011). Dictator Games. A Me- Tax Morale and Fairness in Conflict. An ta-Study. Experimental Economics, 14(4), Experiment, Journal of Economic Psychology, Engel, C., Timme, S. and Glöckner, A. (2020). 583-610. 81, 102314. Coherence-Based Reasoning and Order Ef- fects in Legal Judgments. Psychology, Public Engel, C. (2012). Low Self-Control as a Source Engel, C. and Rahal, R.-M. (2019). Justice Policy, and Law, 26(3), 333–352. of Crime. A Meta-Study. MPI Collective Goods, is in the Eyes of the Beholder. Eye Tracking Discussion Paper 2012/4. Evidence on Balancing Normative Concerns Cerrone, C. and Engel, C. (2019). Deciding on in Torts Cases. MPI Collective Goods, Discus- Behalf of Others Does Not Mitigate Selfish- Engel, C. (2014). Social Preferences Can sion Paper 2020/3. ness: An Experiment. Economics Letters, 183, Make Imperfect Sanctions Work. Evidence 108616. from a Public Good Experiment. Journal of Engel, C., Timme, S. and Glöckner, A. (2020). Economic Behavior & Organization, 108, 343- Coherence-Based Reasoning and Order Engel, C. (2019). When Does Transparency 353. Effects in Legal Judgments. Psychology, Backfire? Putting Jeremy Bentham’s Theory Public Policy, and Law, 26(3), 333–352. of General Prevention to the Experimental Engel, C. (2015a). Scientific Disintegrity as Test. Journal of Empirical Legal Studies, a Public Bad. Perspectives on Psychological Engel, C. and Weinshall Margel, K. (2020). 16(4), 881-908. Science, 10(3), 361-379. Manna from Heaven for Judges. Judges’ Reaction to a Quasi-Random Reduction in Engel, C. and Kirchkamp, O. (2019). How to Engel, C. (2015b). Tacit Collusion. The Caseload. Journal of Empirical Legal Studies, Deal with Inconsistent Choices on Multiple Neglected Experimental Evidence. Journal of 17(4), 722-751. Price Lists. Journal of Economic Behavior & Empirical Legal Studies, 12(3), 537-577. Organization, 160, 138-157. Engel, C. and Zhurakhovska, L. (2014). Con- Engel, C. (2019). When Does Transparency ditional Cooperation with Negative External- Bar-Gill, O. and Engel, C. (2018). How to Pro- Backfire? Putting Jeremy Bentham’s Theory ities – An Experiment. Journal of Economic tect Entitlements. An Experiment. Journal of of General Prevention to the Experimental Behavior and Organization, 108, 252-260. Law and Economics 61(3), 525-553. Test. Journal of Empirical Legal Studies, 16(4), 881-908. Engel, C. and Zhurakhovska, L. (2017). You Engel, C. (2018). Empirical Methods for the Are In Charge. Experimentally Testing the Law. Journal of Institutional and Theoretical Engel, C. (2020). Estimating Heterogeneous Motivating Power of Holding a Judicial Office. Economics, 174, 5-23. Reactions to Experimental Treatments. Journal of Legal Studies, 46(1), 1-50. Journal of Economic Behavior & Organization, Engel, C. and Goerg, S. J. (2018). If the Worst 178, 124-147. Glöckner, A. and Engel, C. (2013). Can We Comes to the Worst. Dictator Giving when Trust Intuitive Jurors? Standards of Proof and Recipient’s Endowments are Risky. European Engel, C. and Goerg, S. J. (2018). If the Worst the Probative Value of Evidence in Coherence Economic Review, 105, 51-70. Comes to the Worst. Dictator Giving when Based Reasoning. Journal of Empirical Legal Recipient’s Endowments are Risky. European Studies, 10(2), 230-252. Engel, C. and Güth, W. (2018). Modeling a Economic Review, 105, 51-70. Satisficing Judge.Rationality and Society, Grgić-Hlača, N., Engel, C. and Gummadi, 30(2), 220-246. Engel, C., Carina Hausladen and Marcel K. P. (2019). Human Decision Making with Schubert (2020). Charting the Type Space. Machine Assistance. An experiment on Bail- Engel, C., Klement, A. and Weinshall Margel, The Case of Linear Public Good Games. ing and Jailing. Proceedings of the ACM on K. (2018). Diffusion of Legal Innovations: Human-Computer Interaction. The Case of Israeli Class Actions. Journal of Engel, C., Hennig-Schmidt, H., Irlenbusch, B. Empirical Legal Studies, 15, 708-731. and Kube, S. (2015). On Probation. An Exper- Hertwig, R. and Engel, C. (2016). Homo imental Analysis. Journal of Empirical Legal Ignorans. Deliberately Choosing Not to Know. Buijze, R., Engel, C. and Hemels, S. (2017). In- Studies, 12(2), 252-288. Perspectives on Psychological Science, 11(3), suring Your Donation. An Experiment. Journal of Empirical Legal Studies, 14(4), 858-885. Engel, C. and Kirchkamp, O. (2019). How to 359-372. Deal with Inconsistent Choices on Multiple Engel, C. and Heine, K. (2017). The Dark Side Price Lists. Journal of Economic Behavior & of Price Cap Regulation: A Lab Experiment. Organization, 160, 138-157. Public Choice, 173(1-2), 217-240. Publications (since 2017) Engel, C., Alon Klement and Weinshall Margel, Engel, C. and Zhurakhovska, L. (2017). You K. (2018). Diffusion of Legal Innovations, Articles in Peer-Reviewed Journals Are In Charge. Experimentally Testing the The Case of Israeli Class Actions. Journal of Motivating Power of Holding a Judicial Office. Empirical Legal Studies, 15(4), 708-731. Engel, C. and Weinshall Margel, K. (2020). Journal of Legal Studies, 46(1), 1-50. Manna from Heaven for Judges. Judges’ Engel, C. and Kurschilgen, M. (2011). Fairness Reaction to a Quasi-Random Reduction in Ex Ante and Ex Post. Experimentally Testing Caseload. Journal of Empirical Legal Studies, Peer-reviewed Conferences Ex Post Judicial Intervention into Blockbuster 17(4), 722-751. Deals. Journal of Empirical Legal Studies, Grgić-Hlača, N., Engel, C. and Gummadi, 8(4), 682-708. Engel, C. (2020). Estimating Heterogeneous K. P. (2019). Human Decision Making with Reactions to Experimental Treatments. Machine Assistance. An experiment on Bail- Engel, C. and Kurschilgen, M. (2013). The Journal of Economic Behavior & Organization, ing and Jailing. Proceedings of the ACM on Coevolution of Behavior and Normative 178, 124-147. Human-Computer Interaction.

109 D. Research Portraits

Book Chapters Honors Diffusion of Legal Innovations: The Case of Israeli Class Actions Engel, C. (2020). Does Efficiency Trump The Pope has appointed me as a member (joint with Alon Klement and Keren Weinshall) Legality? The Case of the German Constitu- of the Pontifical Academy for the Social Behaviorally Efficient Remedies: An Exper- tional Court. Selection and Decision in Judicial Sciences. iment Process Around the World. Empirical Inquiries. (joint with Lars Freund) Chang, Y.-C. Cambridge, Cambridge University 12th Conference on Empirical Legal Studies, Press, 261-286. Cornell University Engel, C. (2019). Organisationen als Akteure, Lectures and Seminar 13-14 October 2017 Festschrift für Martin Morlok zum 70. Ge- Presentations (since 2017) burtstag. Krüper, J., Tübingen, Mohr Siebeck, Modelling European Integration. Comment 295-302. 2017 on Joe Rieff Erasmus University Rotterdam Engel, C. (2018). Experimental Criminal Law. 7 November 2017 A Survey of Contributions from Law, Econom- A Random Shock is not Random Assignment to Treatment ics and Criminology. Empirical Legal Research A Machine-Made (Aided, Legal) Commentary in Action. Boom, W. v., Desmet, P. T. and Rotterdam Statistics Day 3 March 2017 Match-Making Workshop: Humanities and Mascini, P., Elgar, Cheltenham, 57-108. Computer Science Engel, C. (2017). The Solidarity Motive. Inclu- How to Protect Entitlements: An Experiment MPI of History in the Sciences sive Solidarity and Integration of Marginalized (joint with Oren Bar-Gill) 6 December 2017 People. Zamagni, S. and Sanchez Sorondo, Libera Università Internazionale degli Studi M., Libreria Editrice Vaticana, Vatican City, Sociali Guido Carli, Rome 2018 214-232. 22 March 2017 Never Be Too Sure Rechtswissenschaft als empirische Wissen- Comment on Broome, Faire Handlungen vs. Working Papers schaft faire Konsequenzen, 1984 [Law as an Empirical Discipline] Working group session, Zurechnung. Ges- Bar-Gill, O. and Engel, C. (2020). Property is Distinguished Lecture, University of Vienna chichte und Gegenwart eines bedrohten Dummy Proof. An Experiment. MPI Discussion 4 May 2017 Begriffs“, Cologne, Germany Paper 2020/2. 14-15 February 2018 Engel, C., Fedorets, A. and Gorelkina, O. Empirical Methods for the Law (2020). Risk Taking in the Household. Strate- 35th International Seminar on the New Insti- How to Protect Entitlements: An Experiment gic Behavior, Social Preferences, or Interde- tutional Economics – Empirical Methods for (joint with Oren Bar-Gill) pendent Preferences? MPI Discussion Paper the Law University of Liverpool Management School, 2018/14. Syracuse, Italy United Kingdom 7-10 June 2017 16 February 2018 Engel, C., Goerg, S. J. and Traxler, C. (2020). Evaluating Intensive Probation for Juvenile Property Rule vs. Liability Rule: An Experi- Helping When Need Cannot Be Proven Offenders. Evidence from Germany. ment Johns Hopkins School of Advanced Interna- tional Studies, Bologna, Italy Engel, C. and Grgić-Hlača, N. (2020). Machine (joint with Oren Bar-Gill) 26 February 2018 Advice with a Warning about Machine Lim- Workshop Hebrew University, Jerusalem, itations. Experimentally Testing the Solution Israel The Lawyer as a Supernanny: The Behavior- Mandated by the Wisconsin Supreme Court. 12 June 2017 ally Informed Design of Legal Institutions Engel, C., Hausladen, C. and Schubert, M. Law as an Empirical Discipline Conference “Nudging and Information 2018”, (2020). Charting the Type Space. The Case of Faculty Lecture, Hebrew University, Jerusa- University of Graz, Austria Linear Public Good Games. lem, Israel 01-02 March 2018 13 June 2017 Engel, C. and Helland, E. (2020). Does the Workshop Behavioral/Experimental Research Fundamental Transformation Deter Trade? An Property Rule vs. Liability Rule: An Experi- in Law and Economics Experiment. MPI Discussion Paper 2020/23. ment PhD Course “Workshop and Lecture Series Engel, C. and Kramer, X. (2020). How Do (joint with Oren Bar-Gill) in Experimental Research”, University of St. Laypeople Navigate the Maze of the Law? A Hamburg Lectures in Law and Economics, Gallen, Switzerland Vignette Study. University of Hamburg, Germany 21 March 2018 05 July 2017 Engel, C. and Rockenbach, B. (2020). What Warum verstehen Ökonomen und Juristen Makes Cooperation Precarious? The Proper Scope of Behavioral Law and einander nicht? Working group, Zurechnung, Thyssen Founda- Engel, C. and Rahal, R.-M. (2020). Justice Economics tion, Cologne, Germany is in the Eyes of the Beholder. Eye Tracking Theories of Choice Conference, European 2-3 April 2018 Evidence on Balancing Normative Concerns in University Institute, Florence, Italy Torts Cases, MPI Discussion Paper 2020/3. 13-14 July 2017 Experimental Comparative Law Desmet, P. and Engel, C. (2017). People Are Committing the English and the Continental Doctoral School of Social Sciences, University Conditional Rule Followers. MPI Discussion Way: An Experiment of Trento, Italy Paper 2017/19. (joint with André Schmelzer) 23 April 2018 Université de Paris II, Law and Economics For work in progress, please see the group Workshop report. 3 October 2017

110 Behaviorally Efficient Remedies: 2019 Justice is in the Eyes of the Beholder: Eye An Experiment Tracking Evidence on Balancing Normative (joint with Lars Freund) Diffusion of Legal Innovations: The Case of Concerns in Torts Cases American Law and Economics Association, Israeli Class Actions (joint with Rima Maria Rahal) Twenty-Eighth Annual Meeting (joint with Alon Klement and Keren Weinshall) and Boston University School of Law, USA Oxford Business Law Workshop, University of Comment on Lewis Kornhauser: Testing a 11-12 May 2018 Oxford, United Kingdom Fine is a Price in the Lab 23 January 2019 and Experimental Comparative Law Manna from Heaven for Judges. Judges’ Second Conference on Empirical Legal Stud- Franz Böhm ist tot. Es lebe Franz Böhm – Reaction to a Quasi-Random Reduction in ies in Europe, University of Leuven, Belgium Chancen für eine Integration von Ökonomie Caseload 31 May-01 June 2018 und Juristerei in einem veränderten Umfeld (joint with Keren Weinshall) 2nd Franz Böhm Lecture, Freiburg, Germany 14th Annual Conference on Empirical Legal The Accuracy – Discrimination Tradeoff 30 January 2019 Studies, Claremont, USA Comment on Kristen Altenburger & Dan Ho 15-16 November 2019 36th International Seminar on the New Institu- Five Unique Windfalls and Even More Pitfalls tional Economics – Without Money Utrecht Leiden Winter School on Interdisci- 2020 Florence, Italy plinary Behavioural & Social Sciences, The 6-9 June 2018 Netherlands Risk Taking in the Household. Strategic Be- 7-8 February 2019 havior, Social Preferences, or Interdependent Identity as a Resource and as an Impediment Preferences? for Governing Society Justice is in the Eyes of the Beholder (joint with Alexandra Fedorets and Olga “Being More Than One, Workshop on Multiple (joint with Rima-Maria Rahal) Gorelkina) Identities”, Weimar, Germany ETH Zurich, Switzerland Social Psychology Workshop, University of 4-6 July 2018 15-16 March 2019 Freiburg 22 January 2020 Law as an Empirical Discipline How Do Laypeople Navigate the Maze of the Experimental Law and Economics Law? A Vignette Study Judicial Tech Heterogeneous Treatment Effects: Machine (joint with Xandra Kramer) Kick-off Conference “The Roundabouts of Learning and Experimental Design Workshop on Experiments at the Crossroads Digital Governance” Diffusion of Legal Innovations: The Case of of Law and Economics Erasmus School of Law, Rotterdam, The Israeli Class Actions Erasmus School of Economics, Rotterdam, Netherlands Academia Sinica, Taiwan The Netherlands 28 January 2020 16-19 October 2018 27 March 2019 Law as a Behavioral Discipline. A Program- Turning the Lab into Jeremy Bentham’s Warum verstehen Ökonomen und Juristen matic Introduction Panopticon: A Lab Experiment on the Trans- einander nicht? A Primer on Methods for Studying Behavior- parency of Punishment Arbeitskreis Zurechnung, Thyssen Stiftung, al Effects Doctrinal Ambiguity in the Lab: Comment on Cologne, Germany Property is for Dummies Daniel M. Klerman and Holger Spamann 1-3 April 2019 (joint with Oren Bar-Gill) 13th Conference on Empirical Legal Studies, Shying Away from the Fundamental Trans- Ann Arbor, Michigan, USA Justice is in the Eyes of the Beholder: Eye formation of Exchange into Dependence? 9-10 November 2018 Tracking Evidence on Balancing Normative (joint with Eric Helland) Concerns in Torts Cases Tax Morale and Fairness in Conflict Turning the Lab into Jeremy Bentham’s (joint with Rima Maria Rahal) (joint with Luigi Mittone and Azzurra Panopticon: A Lab Experiment on the Trans- 29th Annual Meeting of the American Law Morreale) parency of Punishment and Economics Association, New York Uni- Justice is in the Eyes of the Beholder Georgetown University Law School, Washing- versity Law School, USA (joint with Rima Rahal) ton, USA 17-18 May 2019 Dieter Heremans Lecture in Law and Econom- 12-13 November 2018 ics, and series of lectures, Catholic University Uncertain Judges of Leuven, Belgium Ein Angebot, das zu schlecht ist, um Nein zu Comment on Charles F. Manski 24-27 February 2020 sagen 37th International Seminar on the New Institu- Leopoldina, Halle, Germany, Symposium on tional Economics – Causality in the Law and Governance and Compliance in the Social Sciences 4 December 2018 Porto, Portugal Diploma Theses, Disser 5-8 June 2019 tations, and Habilitations Würde abwägen? Working group, Zurechnung, Thyssen Founda- Manna from Heaven for Judges: Judges’ tion, Cologne, Germany Reaction to a Quasi-Random Reduction (joint Dissertations 7 December 2018 with Keren Weinshall) Workshop on “Judicial Decision-Making: In- October 2017 tegrating Empirical and Theoretical Perspec- Henning Prömpers, Friedrich Schiller tives”, University of Lucerne, Switzerland University, Jena (Economics): Heterogeneous 9 July 2019 Risks at Auditing of Trade Accounts Receiv- able and their Default in Payment within Property is Dummy Proof. An Experiment Personal Insolvency

University of Vienna, Austria

15 October 2019

111 D. Research Portraits

December 2017 Habilitations André Schmelzer, Technical University Berlin (Economics): Essays on Market Design and January 2017 Regulation under Bounded Rationality Armin Steinbach, University of Bonn (Law): Rationale Gesetzgebung January 2018 [Rational Legislation] Shaheen Naseer, Erasmus University Rotter- dam (Law): The Policy Choices of Bureau- October 2019 crats: An Institutional Analysis Alexander Morell, University of Cologne (Law): Der Beibringungsgrundsatz April 2018 [The Principle of Adversarial Proceeding: A Svenja Hippel, Friedrich Schiller University, Justification] Jena (Economics): Institutional Solutions to Social Dilemmas: A Behavioral Economics Perspective Professional Activities

May 2018 Editor Konstantin Chatziathanasiou, University of Review of Law and Economics Bonn (Law): Verfassungsstabilität – Eine von Art. 146 GG ausgehende juristische und Ad hoc reviewer (experimental-)ökonomische Untersuchung [Constitutional Stability – Applying the Tools Journal of Legal Studies, Journal of Empirical of Experimental Economics to Art. 146 Ger- Legal Studies, Journal of Law, Economics and man Basic Law] Organization, American Law and Economics Review, International Review of Law and May 2018 Economics, American Journal of Comparative Wladislaw Mill, Friedrich Schiller University, Law, International Journal of Constitutional Jena (Economics): Spite in Auctions. Theore- Law, European Journal of International Law, tical and Experimental Investigations Econometrica, Management Science, Science October 2018 Advances, Economic Journal, Journal of Pub- Leonhard Hoeft, University of Bonn (Law): lic Economics, Games and Economic Behavior, Normen im Labor. Eine Annäherung an Research Policy, Experimental Economics, H. L. A. Harts Teilnehmerperspektive aus Journal of Economic Behavior and Organiza- Sicht der experimentellen Verhaltensökono- tion, International Journal of Industrial Organi- mie [Norms in the Lab. Reading H. L. A. Hart’s zation, Labour Economics, Economics Letters, Participant Perspective from the Vantage Journal of Economic Psychology, Journal of Point of Experimental Economics] the Economic Science Association, Journal of Behavioral and Experimental Economics, Re- April 2019 view of Behavioral Economics, Public Choice, Lars Freund, University of Cologne (Eco- Games, Economics Bulletin, Journal of Public nomics): Implementation in the Presence of Economic Theory, Journal of Institutional and Social Preferences Theoretical Economics, Journal of Institutional Economics, Metronomica July 2019 European Research Council, Alexander von Christina Strobel, Friedrich Schiller Univer- Humboldt Foundation, Thyssen Foundation, sity, Jena (Economics): Accountability and Zentrum für Europäische Wirtschaftsfor- Appraisal of Artificial Intelligence schung, Israeli Science Foundation, United States – Israel Binational Science Founda- March 2020 tion, Israel Institute for Advanced Studies Gentiana Imeri, University of St. Gallen (Law): The Expressive Function of Law

July 2020 Co-Chair: International Max Planck Research Eugenio Verrina, University of Cologne School Adapting Behavior to a Fundamentally (Economics): Essays on Moral and Ethical Uncertain World (with Oliver Kirchkamp) Behavior in Experimental Economics Chair: International Max Planck Research School Behaviorally Smart Institutions October 2020 Yoan Hermstrüwer, Friedrich Schiller Univer- Member of the Board: Society of Empirical sity, Jena (Economics): Engineering Games Legal Studies, 2015–2019 (as first non- in the Public Interest. Essays in Experimental American member) Law and Market Design Chair: Max Planck Committee on a potential MPI for Geoanthropology October 2020 Carina Hausladen, University of Cologne (Eco- nomics): Behavioral Economics – Enhanced: Machine-Learning and Decision-Making

112 Alina Fahrenwaldt

Overview studies, and are currently working on the coding procedure for this meta-analysis. Broadly speaking, I am interested in the psychological, individual, and situational Context-Dependent Cheating: Betraying determinants of ethical judgment and a Stranger or an Institution behavior. In my projects at the Max Cheating by self-ascribed honest Planck institute, which I joined in July individuals is subject to scientific 2019, I focus on situational characteris- debates about the proposed underlying tics that facilitate selfish behavior, the cognitive and attentional processes. effect of the type of claimant on cheat- While self-concept maintenance theory ing occurrences, the development of assumes cheating to be conscious dishonesty over time, and on predictors profit-maximizing behavior that cre- of deontological versus utilitarian moral ates ethical dissonance, the bounded judgments. Moreover, we seized the ethicality approach holds that it may be opportunity to use the COVID-19 pan- the result of motivated, yet unconscious, Contact demic as a natural experiment to test attentional and reasoning mechanisms. the impact of governmental measures Previous research suggests that cheat- [email protected] on perceived social norms, personal ing may be easier when harming an attitudes, and intervention intentions. institution, compared to a person, and https://www.coll.mpg.de/ I will describe these projects in more may depend on interindividual differ- alina-fahrenwaldt detail below. ences in prosocial traits. Together with Susann Fiedler (manuscript in prog- Meta-Analysis of the Effect of Moral ress), we present evidence from a pupil Wiggle Room on Social Decision-Making dilation and attention study (N = 101), The traditional economic view of investigating cheating behavior contin- human agents as rational and selfish gent on cheating the research institute decision-makers has been questioned compared to another anonymous par- by research suggesting that humans ticipant. We find that the hypothesized may actually have a preference for differences in the propensity of cheating prosociality. Specifically, for experimen- depend on the type of claimant and tal games in which selfishness would the social value orientation. However, be rational, many studies have shown analyzing the experienced arousal, we that people make prosocial decisions discover very similar arousal patterns more often and to a higher degree than for both contexts. The same holds true predicted by classical economic theory. for the analysis of biased attention. This However, some researchers argue that means we find more attention given to people may not only derive utility from the tempting decision option both when material gain, but also from feeling and cheating a fellow participant as well as appearing like moral human beings. the research institute. These first results This approach suggests that situational indicate that the underlying processes characteristics, which make it harder of cheating are not context-dependent, to infer an agent’s motives from his but instead universal. actions (termed moral wiggle room), may increase selfish behavior. Togeth- Dishonesty Escalation over Time er with Fiona tho Pesch and Susann Large-scale fraud scandals have led Fiedler (work in progress), we quanti- researchers to wonder whether uneth- tatively review the existing literature ical behavior can be self-reinforcing on the effect of various types of moral and might thus spiral out of control. wiggle room on social decisions in a Evidence for this theory comes from meta-analysis. So far, we have screened a neuroscientific study that finds that the literature, identified the relevant escalation of dishonest behavior is accompanied by a decrease in the

113 D. Research Portraits

amygdala’s sensitivity to these immoral where decisions are attributed to either ception of behavioral change, but their acts. Importantly, this part of the brain intuition or rationality, has also affected contribution to processes of normative is associated with fear, but also with the domain of moral judgment research: change may be less straightforward reward signals. In keeping with the some researchers argue that deontologi- than theoretically proposed. self-concept maintenance theory men- cal judgments are the intuitive response, tioned above, the authors argue that this while utilitarian judgments stem from signal reduction mirrors a habituation deliberation. Together with Jerome Working Papers to the negative arousal stemming from Olsen, Susann Fiedler, and Rima-Maria Fahrenwaldt*, A., Toribio-Flórez*, D., Sasse, ethical dissonance, and that the reduc- Rahal (work in progress), we set out to J. and Baumert, A. (2020). The Effect of tion in aversion to one’s unethicality then investigate the cumulative evidence in Governmental COVID-19 Measures on drives the observed dishonesty escala- favor of intuitive deontology to estimate Physical Distancing Norms and Intervention tion. However, other research finds that the underlying population effect size, as against Deviations: A Case Study in Germany. (*shared first authorship) people may not only experience negative well as potential moderators of the ef- emotions when being dishonest, but fect, in a meta-analysis. So far, we have also derive some kind of positive thrill screened the literature and identified from this behavior, termed the cheater’s and started coding the studies that are Work in Progress high. Together with Susann Fiedler (work eligible for this meta-analysis. Fiedler, S., Fahrenwaldt, A. and Glöckner, A. in progress), we argue that, apart from a (in preparation) Fooling Whom Out of His Money? Investigating Arousal Dynamics habituation to negative arousal, people The Effect of Governmental Measures in the Context of Betraying Institutions or could also habituate to this cheater’s on Social Norm Perception and Inter- Strangers. high (similar to the build-up of tolerance vention Behavior Olsen, J., Fahrenwaldt, A., Fiedler, S. and to a drug), and we assume that both To contain the COVID-19 pandemic, Rahal, R. M. The Intuition of Deontological mechanisms are valid. Specifically, we governments worldwide implemented Judgments: A Meta-Analysis. hypothesize that the importance of each physical-distance rules. However, little tho Pesch, F., Fahrenwaldt, A. and Fiedler, S. proposed mechanism may depend on is known about how such rules have The Effect of Moral Wiggle Room: Meta- interindividual differences in sensa- influenced systems of social norms. Analytic Evidence. tion-seeking. For individuals scoring low Together with Daniel Toribio-Flórez, Julia Fahrenwaldt, A. and Fiedler, S. Dishonesty on sensation-seeking, we expect the ha- Sasse, and Anna Baumert (manuscript Escalation (Online): Testing Two Affect bituation to negative arousal to be most in progress), and in a pre-post natural ex- Habituation Mechanisms and the Relevance of Interindividual Differences. relevant, while tolerance to the cheater’s perimental design, we tested the effects high may be more prevalent in individ- of governmental physical-distance rules uals scoring high on sensation-seek- (introduced in Germany on 22 March Lectures and Presentations ing. Consequently, in individuals with 2020) on perceptions of social norms average sensation-seeking scores, both and personal attitudes regarding phys- (since 2017) mechanisms could drive behavior, which ical-contact behavior, as well as their About “In-Group Love”, “Out-Group Hate”, lets us expect the highest dishonesty relationship with people’s intentions to and Effects of Stress in Female Political Sympathizers (invited) scores to be found for these ‘average’ intervene against deviations. We argue SPUDM (Subjective Probability, Utility, and individuals. We test our predictions in an that governmental rules can inform and Decision Making) conference, University of online study and will subsequently inves- disambiguate social norms. The intro- Amsterdam, the Netherlands tigate the underlying attentional patterns duction of governmental rules reduced 22 August 2019 and arousal dynamics in an eye-tracking the perceived prevalence (i.e., perceived Fooling Whom Out of His Money? Investigat- study. descriptive norms) of physical-contact ing Arousal Dynamics in the Context of Be- behavior; unexpectedly, however, these traying a Stranger or an Institution (invited) Meta-Analysis of Intuitive Deontological rules did not reduce the perceived norm Cognitive Economics Virtual Conference, online versus Utilitarian Moral Judgment ambiguity, nor did they affect the per- 10 July 2020 A long-standing debate among philoso- ceived social appropriateness (i.e., per- phers has not yet resolved the question ceived injunctive norms) of this behavior; which ethical concept captures human instead, they even increased personal Professional Activities moral reasoning best: deontology appropriateness ratings (i.e., personal August 2020 – ongoing or utilitarianism. While the former is attitudes). Furthermore, personal and Member of the Max Planck PhDnet Survey Group guided by rather rigid rules (such as perceived social appropriateness ratings “Thou shalt not kill”), the latter favors independently predicted intervention May 2020 – May 2021 actions that focus on the greater good intention, irrespectively of the introduced External PhD representative for the year (i.e., sacrificing one for many). The governmental rules. We conclude that popularity of dual-process frameworks, governmental rules may prompt the per-

114 Teaching Winter term 2019/2020 Bachelor thesis supervision Fernuniversität Hagen

Summer term 2019 Bachelor thesis supervision Fernuniversität Hagen

115 D. Research Portraits

116 Ranveig Falch

Overview varying the age of the children and key dimensions of the distributive situation. I joined the EEG group of the Max Planck Institute for Research on Collective As a second part of the same proj- Goods in August 2020 as a Senior ect, Cappelen, Falch, Huang, and Research Fellow. My primary field of re- Tungodden (2020b) have children (in search is behavioral economics, and my the same age groups as those for whom work is primarily empirical, implement- the adults made decisions) make the ing experiments in controlled laboratory same set of distributive decisions that or field settings with large, nationally the adults made. However, the children representative samples. My research make decisions within their own age is primarily focused on preferences for group, meaning that they distribute inequality in income and education, and between children their own age. Taken seeks to answer the following research together, the experiments allow us to questions: (i) How are preferences for investigate how adults make distrib- Contact inequality shaped? (ii) Why do boys utive choices for children at different perform worse at school than girls do ages, and how this corresponds to the [email protected] in most developed countries? (iii) What distributive choices made by children can be done to reduce inequality in edu- in the same age groups. To map out https://www.coll.mpg.de/ranveig-falch cation? (vi) What are people’s preferenc- how children and adults compare in es for reducing inequality in education? different societies, and how children in different societies compare, we have How Are Preferences for Inequality implemented the experiments with Shaped? heterogeneous samples of adults and children in both China and Norway. Inequality is a pressing social issue and inequality considerations figure promi- Previous research has also shown that nently in almost all spheres of society. moral preferences may be shaped by However, there are striking differences important life events, such as wars, in the attitudes to inequality across the natural disasters, and economic shocks. world, and an important question is Cappelen, Falch, Sørensen, and Tungod- why people in some countries are more den (2020) seek to understand how the willing to accept inequality than people COVID-19 pandemic may affect people’s in other countries. Cappelen, Falch, moral preferences and their inequality Huang, and Tungodden (2020a) shed acceptance. To provide causal evidence light on how inequality acceptance in on how the COVID-19 pandemic may society may be transmitted from one shape people’s moral views, we conduct- generation to the next through oblique ed a large-scale pre-registered survey socialization by documenting system- experiment with a nationally representa- atic differences in how adults handle tive sample of more than 8,000 Ameri- distributive conflicts among children in cans. We examined how a reminder of two societies characterized by very dif- the COVID-19 pandemic causally affects ferent levels of income inequality: China people’s views on solidarity and fair- (Shanghai) and Norway. In a large-scale ness. We randomly manipulate whether experiment, including over 6,000 adults, respondents are asked general ques- we find a striking country difference, tions about the crisis before answering where adults in China implement more moral questions. By making the pan- than twice as much income inequality demic particularly salient for treated re- between children (5, 9, 13, and 17 years spondents, we provide causal evidence old), compared to adults in Norway on how the crisis may change moral making the same type of distributive views. We find that a reminder about the decisions. This finding is robust to crisis makes respondents more willing

117 D. Research Portraits

to prioritize society’s problems over their ination against males who fall behind, ingness to invest in schoolwork, among own problems, but also more tolerant particularly among female participants. students who initially spend relatively lit- of inequalities due to luck. We show A large set of additional treatments tle time on schoolwork. We will combine that people’s moral views are strongly establishes that the gender discrimina- experimental, survey, and administrative associated with their policy preferences tion among female participants reflects data on a large sample of Norwegian for redistribution. The findings show statistical fairness discrimination. The 10th-graders to answer this question. that the pandemic may alter moral views study provides novel evidence on the na- and political attitudes in the United ture of discrimination and on how males States and, consequently, the support falling behind are perceived by society. Publications (since 2017) for redistribution and welfare policies. Related to inequality in education, and Book Chapter Finally, Cappelen, Falch, and Tungodden the students who fall behind, I am work- Cappelen, W. A., Falch, R. and Tungodden, B. (2020) provide a review of the experi- ing on the first experiment designed (2020). Fair and Unfair Income Inequality. In: mental research on fairness and income to elicit people’s preferences for the Zimmermann K. (ed.), Handbook of Labor, inequality. The chapter describes how distribution of educational resources Human Resources and Population Economics. Springer, Cham,1–25. people differ in the weight they attach in society (Falch, 2020). Investment to fairness and in what they perceive to in “human capital” is at the heart of Revise & Resubmit be fair and unfair inequalities. Moreover, national strategies to promote economic Cappelen, W. A., Falch, R., Sørensen, E. Ø. the handbook chapter illustrates how prosperity. Inherent to these invest- and Tungodden, B. (2020a). Solidarity and the pluralism in fairness preferences is ments are challenging distributional Fairness in Times of Crisis. R & R: Journal of essential to understanding a larger num- considerations: who should get what? In Economic Behavior & Organization. ber of economic phenomena, including this project, I provide new insights into incentive structures in the labor market, people’s preferences for the distribution Working Papers bargaining, and redistribution. Finally, of educational resources in society. I Cappelen, W. A., Falch, R. and Tungodden, B. the chapter provides an overview of the conduct an incentivized experiment (2019). The Boy Crisis: Experimental Evidence experimental research on the origins designed to elicit such preferences, on the Acceptance of Males Falling Behind. of fairness preferences, focusing on specifically examining how a general NHH Department of Economics Discussion Paper 06/2019. studies of how fairness preferences population sample of over 2,000 Amer- develop in childhood and adolescence, icans trade off educational resources and on how fairness preferences are between quick and slow learners. I find shaped by the social environment. that they give priority to slow learners, Work in Progress assigning, on average, two thirds of the Falch, R. (2020). How Do People Trade Off Re- Inequality in Education educational resources to this group. Us- sources Between Quick and Slow Learners? ing treatment manipulations, I find that Cappelen, W. A., Falch, R., Sørensen, E. Ø. and In all but six OECD countries, a larger both cost efficiency and the relative mo- Tungodden, B. (2020b). Experienced Welfare proportion of boys than girls do not tivations of the learners causally affect Under the COVID-19 Pandemic. attain the baseline level of proficiency the resource allocations, but the priority Cappelen, W. A., Falch, R., Huang, Z. and Tun- in core subjects. Boys are also dropping given to slow learners remains. The godden, B. (2020a). How Do Adults Handle Distributive Conflicts Among Children? Exper- out of high school at higher rates than findings provide important insights for imental Evidence From China and Norway. girls and, in higher education, females the present policy debate on how to dis- have surpassed the rate of males gradu- tribute educational resources in society. Cappelen, W. A., Falch, R., Huang, Z. and Tungodden, B. (2020b). The Development of ating in nearly all OECD countries. Simi- Social Preferences: Experimental Evidence larly, in high-income countries there is a from China and Norway. growing concern about the prospects for Outlook for 2020-2021 Falch, R. and Landaud, F. (2020). Peer low-skilled males. The negative develop- Perceptions and Students’ Investments in ments among males in education and In addition to the ongoing projects Schoolwork. the labor market prompts the question outlined above, I will be implementing of whether people interpret inequalities a new field experiment with Fanny Lan- differently depending on whether males daud during the fall of 2020. The project Professional Activities or females are falling behind. Cappelen, will inform the ongoing debate on how Falch, and Tungodden (2019) study this to reduce inequality in education. In Referee for question in a new large-scale distributive this project, we will study through a experiment with a general population controlled experiment whether provid- Management Science, Scandinavian Journal of Economics, Experimental Economics sample of over 14,000 Americans. Our ing correct information about the study data provide strong evidence of discrim- effort of peers impacts students’ will-

118 Susann Fiedler

Summary Report Advancing, in particular, an experimental series on the link between social I am fascinated by how individuals and preferences and information search in institutions (in the broadest sense) the context of social dilemmas gave shape the behavior, and a good part of us insights into the effects of cognitive my projects explores how the design constraints and time pressure (Fiedler, of decision environments is linked to Olsen, and Lillig, work in progress), economic outcomes: What guides framing (Fiedler and Hillenbrand, 2020), counterproductive behavior? How are intergroup situations (Rahal, Fiedler, strategic vs. non-strategic decisions and De Dreu, 2020), incentives (Fiedler formed? Which aspects of a decision and De Dreu, work in progress), nation- environment are weighted most strongly ality (Fiedler, Hellmann, Dorrough, and in the decision-making process? I Glöckner, 2018), and different recipient have also worked on the mechanisms groups (Hellmann, Fiedler, and Glöck- and drivers of cooperative behavior in ner, work in progress). Using gaze Contact connection with underlying inter-indi- recordings and fully interactive decision vidual social preferences. Examples paradigms, we have already found out [email protected] include the link between Social Value that individuals with a strong prosocial Orientation and altruistic giving, but orientation search for more information https://www.coll.mpg.de/susann-fiedler also strategic behavior in the context of about their partners or group members. social dilemma situations. Ultimately, Following up on this, we went further a better understanding of the under- and examined the role of systematic lying cognitive processes and its link ignorance in the context of outgroup to observable behavior can be used to discrimination (Rahal, Fiedler, and De develop more targeted interventions and Dreu, 2020; Rahal, Fiedler, and De Dreu, support social and business develop- work in progress), as well as situations ers by creating structures fostering a that call for civil courage (Tho Pesch, trusting and cooperative environment. Fiedler, and Baumert, work in progress).

Building on results from the previous Extending this first line of research, year’s description of the relationship which shows the strong link between between inter-individual differences social preferences and attention, as well in social preferences and information as between attention and social deci- search behavior in social dilemma sion-making (Fiedler and Ghaffari, 2018), situations (Fiedler, Glöckner, Nicklisch, we were curious about the potential sub- and Dickert, 2013), I aim to describe and sequent effects of these interrelations. predict the cognitive underpinnings and In a joint project by Minou Ghaffari, Bet- mental construction processes within tina von Helversen, and Susann Fiedler, various decision situations. Understand- we replicate the link between social ing the inter-individual differences in the preferences and the extent of informa- perception of, for example, the decision tion search. Specifically, prosocial indi- to volunteer in social projects, contrib- viduals invest more time in their search uting to open source technologies, or for information in decomposed dictator the decision to vote will help to design games and, in this particular setting, are incentive structures and institutional more likely to inspect relevant behavioral settings that foster social welfare-max- indices of their interaction partner. As imizing behavior. This is an emerging a result of this, prosocials show better field within the area of social psychol- memory performance when asked for ogy and behavioral economics which their interaction partners’ behavior than is highly relevant for social planners, individuals who have rather individu- since it potentially has large benefits in alistic preferences (Ghaffari, Fiedler, terms of reducing cost within society. and von Helversen, work in progress).

119 D. Research Portraits

Another area of behavior that I am par- Judgment and Decision Making being Fiedler, S., Hu, Y. and Weber, B. (2020). ticularly interested in is identifying the replicated. The next steps in the project What Drives the (Un)Empathic Bystander to Intervene? Insights From Eye-Tracking. British drivers of counterproductive behavior are the re-analysis of the replications, Journal of Social Psychology, 59(3), 733–751. and dishonesty, especially the affective and the dissemination of the results (shared first authorship) (Jekel, Fiedler, Glöckner, Dorrough, and and cognitive mechanisms involved Fiedler, S., Jekel, M., Allstadt Torras, R., while such behavior occurs. It has often Allstadt Torras, work in progress). With Mischkowski, D., Dorrough, A. R. and Glöck- been suggested that decision-makers a first concept paper that is currently ner, A. (2020). How to Teach Open Science are bounded in their ethicality, meaning developing into a guideline for setting Principles in the Undergraduate Curriculum – The Hagen Cumulative Science Project. Psy- up similar projects, we started report- that they develop “blind spots” for their chology Learning & Teaching, 19(1), 91–106. own unethical behavior and that of oth- ing about this project (Fiedler, Jekel, (shared first authorship) ers. Using gaze and arousal recordings Allstadt Toras, Mischkowski, Dorrough, Fiedler, S. and Rahal, R. (2019). Understand- in fully incentivized decision paradigms, and Glöckner, 2020). In joint work with ing Cognitive and Affective Mechanisms in we are currently investigating the sys- Andreas Glöckner, in preparation for Social Psychology Through Eye-tracking. tematic and predictable ways in which a DFG proposal, we showed the role Journal of Experimental Social Psychology, 85, humans act unethical beyond their own of theory databases in psychological 103842. (shared first authorship) awareness. One result we have found in science and discussed how efficiency of Levin, F., Fiedler, S. and Weber, B. (2019). The an ongoing series of experiments is that the scientific work could be increased Influence of Episodic Memory Decline on Value-Based Choice. Aging, Neuropsychology, the process of cheating involves both by using standards of transparency and and Cognition, 26(4), 599–620. tension reduction mechanisms dealing generalizability (Glöckner, Fiedler, and Fiedler, S. and Ghaffari, M. (2018). The Power with the experienced arousal, but also Renkewitz, 2018). Applying the same of Attention: Using Eye Gaze to Predict bounded ethicality mechanisms, e.g., principles to research using eye-track- Other-Regarding and Moral Choices. Psycho- avoiding information that makes one’s ing, and in collaboration with Michael logical Science, 29(11), 1878–1889. (shared own unethical behavior salient (Fiedler, Schulte-Mecklenbeck, Frank Renke- first authorship) Fahrenwaldt and Glöckner, work in witz, and Jacob Orquin, I developed Moshontz, H., Campbell, L., Ebersole, C. R., progress). Building on these first results, an easy-to-use guide for eye-tracking IJzerman, H., Urry, H. L., Forscher, P., Fiedler, I focused on these mechanisms in the research that allows researchers as well S., ... & Flake, J. K. (2018). Psychological Science Accelerator: Advancing Psychology context of (1) discrimination (Dor- as reviewers to test and understand through a Distributed Collaborative Network. rough and Fiedler, work in progress), the reliability and transparency of the Advances in Methods and Practices in Psy- (2) civil courage (Tho Pesch, Fiedler, reported results (Fiedler, Schulte-Meck- chological Science, 1(4), 501–515. and Baumert, work in progress; Fiedler, lenbeck, Renkewitz, and Orquin, 2020). Fiedler, S., Hellmann, D. M., Dorrough, A. Hu, and Weber, 2019) and (3) a plan R. and Glöckner, A. (2018). Cross-National to extend to decision environments in-Group Favoritism in Prosocial Behavior: Evidence From Latin and North America. involving potential losses. Based on Publications (since 2017) Judgment and decision making, 13(1), 42–60. this theory driven work, I additionally Glöckner, A., Fiedler, S. and Renkewitz, F. plan to develop interventions targeting Articles in Peer-Reviewed Journals (2018). Belastbare und effiziente Wissen- these existing blind spots of unethical Levin, F., Fiedler, S. and Weber, B. (Registered schaft: Strategische Ausrichtung von For- behavior by means of nudging and report in principle acceptance). Positivity schungsprozessen als Weg aus der Replika- changes in the institutional structures. Effect and Decision Making in Ageing. Cogni- tionskrise. Psychologische Rundschau. 69(1), tion and Emotion. 1–15. Besides my process-tracing research, Bago, B., Aczel, B., Kekecs, Z., Protzko, J., Ko- Bouwmeester, S., Verkoeijen, P. P., Aczel, I further developed my work within the vacs, M., Nagy, T. … Fiedler, S. … and Chartier, B., Barbosa, F., Bègue, L., Brañas-Garza, P., C. (Registered report in principle acceptance). Fiedler, S., ... and Evans, A. M. (2017). Regis- Open Science community and meta- Exploring the Influence of Personal Force tered Replication Report: Rand, Greene, and science. In my role as the director of the and Intention in Moral Dilemma Judgements. Nowak (2012). Perspectives on Psychological logistics committee of the Psychologi- Nature Human Behaviour. Science, 12(3), 527–542. cal Science Accelerators, I developed ini- Evans, A., Fiedler, S. and Kogler, C. (2020). tial structures that can be scaled for any Process Tracing Methods in Social Psycholo- Book Chapters, Invited Comments, and gy. Journal of Experimental Social Psychology. type of multi-side collaborations, making Research Reports inter-cultural work much easier in the fu- Rahal, R. M., Fiedler, S. and De Dreu, C. K. Fiedler, S., Schulte-Mecklenbeck, M., Orquin, ture. This will allow us to move one step (2020). Prosocial Preferences Condition J. and Renkewitz, F. (2020). Increasing Decision Effort and Ingroup Biased Generos- closer to one goal in psychology that is Reproducibilty of Eyetracking Studies: The ity in Intergroup Decision-Making. Scientific EyeGuidelines. In M. Schulte-Mecklenbeck, A. largely ignored – generalizability. Addi- reports, 10(1), 1-11. tionally, together with colleagues from Kühberger and R. Ranyard (Eds.), A Handbook Fiedler, S. and Hillenbrand, A. (2020). Gain- of Process Tracing Methods for Decision Hagen, I set up a large-scale student Loss Framing in Interdependent Choice. Research. A Critical Review and User´s Guide. cumulative science project with, by now, Games and Economic Behavior, 121, 232-251. New York and Hove: Psychology Press, 65-75. 100 original studies from the Journal of

120 Fiedler, S., Weber, B. and Ettinger, U. (2019). Transparency and Reproducibility of Scientif- Strengthening the Bond Between Theory and Neuroeconomics. In C. Klein U. Ettinger ic Work Evidence (Eds.), Eye Movement Research: An Introduc- Network Evidence-Based Medicine, Hamburg, International Meeting of the Psychonomic tion to its Scientific Foundation and Applica- Germany Society, Amsterdam, The Netherlands tions. Springer. March 2017 May 2018

Open Science Collaboration (2017). Maxi- Personality, Situation, and Cognitive Pro- Staying Blind to Stay Fair: Inter-Individu- mizing the Reproducibility of Your Research. cesses in Social Decision Making al Differences as Drivers of Information In S. O. Lilienfeld and I. D. Waldman (Eds.), Cognition, Person, and Situation: Unifying Avoidance Psychological Science Under Scrutiny: Recent Explanations of Economic Behavior, Landau, European Conference on Personality, Zadar, Challenges and Proposed Solutions. New Germany Croatia York, NY: Wiley. March 2017 July 2018

Maximizing Reproducibility: Everyday Prosocial Preferences in Intergroup Deci- Revise & Resubmit Possibilities of Increasing Your Scientific sion-Making Eriksson, K., Strimling, P., Gelfand, M., Wu, J., Contribution EADM Summer School, Salzburg, Austria Abernathy, J., … Fiedler, S., ... and Van Lange, Colloquium, Humboldt University, Berlin, July 2018 P. (R & R). The Appropriateness of Informal Germany Sanctions in 57 Countries. Nature Communi- May 2017 Choice Construction in Social Dilemma cations. Situations Understanding the Interplay of Social Prefer- Colloquium, Goethe-Universität Frankfurt, Tho Pesch, F., Fiedler, S. and Baumert, A. ences and Incentives Germany (R & R). Seeing Moral Transgressions: Moral Colloquium, University of Würzburg, Germany December 2018 Wiggle Room in Costly Punishment. Journal May 2017 of Economic Psychology. Prosocial Preferences in Intergroup Deci- Ghaffari, M., Fiedler, S. and von Helversen, B., Ignorance as a Tool of Self-Interest? sion-Making: Understanding Ignorance via (R & R). The Cost of Imperfect Memory in 20th International Conference for Social Eye-Tracking Social Interactions. Journal of Personality and Dilemmas, Taormina, Italy Colloquium, Universität des Saarlandes, Saar- Social Psychology. June 2017 brücken, Germany December 2018 Fiedler, S., Schulte-Mecklenbeck, M., Orquin, Understanding the Interplay of Social Prefer- J. and Renkewitz, F. (R & R). Guideline for Re- ences and Incentives via Eye-Tracking? 2019 porting Standards of Eye-tracking Research SPUDM, Haifa, Israel in Decision Sciences. Behavior Research August 2017 Open Science: From Transparency to Effi- Methods. cient Theory Development The Indirect Costs of Being Individualistic: Colloquium on Comparative Psychology, Understanding the Link between Social Pref- Düsseldorf University, Germany Working Papers erences and Memory Performance September 2019 Colloquium, Tilburg University, The Nether- Rahal, R.-M., Hoeft, L. and Fiedler, S. (in lands Fooling Whom Out of His Money? Investi- preparation). Eyes on Morals: Investigating November 2017 the Cognitive Processes underlying Moral gating Arousal Dynamics in the Context of Decision Making via Eye-Tracking. Different Honesty Norms 2018 Colloquium on Comparative Psychology, Rahal, R.-M., Fiedler, S. and De Dreu, C.K.W. Düsseldorf University, Germany (in preparation). Staying Blind to Stay Fair: Openness and Transparency: Everyday November 2019 Inequality Averse Decision Makers Avoid Possibilities of Increasing Your Scientific Group Membership Information and Ingroup Contribution The Value of Reproducibility Favoritism. Colloquium, Universität Landau-Koblenz, Utrecht University in Bonn, Germany Landau, Germany December 2019 Fiedler, S., Olsen, S. and Lillig, R., C.K.W. January 2018 (in preparation). Social Preferences Under 2020 Constraints. The Indirect Costs of Being Individualistic: Fiedler, S. Fahrenwaldt, A. and Glöckner, A. (in Understanding the Link between Social Pref- Understanding Group Competition preparation). Fooling Whom Out of His Mon- erences and Memory Performance Colloquium WU Vienna, Austria ey? Investigating Arousal Dynamics in the IMEBESS, Florence, Italy January 2020 Context of Betraying Institutions or Strangers. May 2018 Underlying Mechanisms of Strategic Deci- The Indirect Costs of Being Individualistic: sion-Making Understanding the Link between Social Pref- Virtual Process-Tracing Conference, ZOOM, Lectures and Presentations erences and Memory Performance Germany Colloquium, Middlesex University, London, July 2020 (since 2017) Great Britain May 2018 2017 Strengthening the Bond between Theory and Evidence

Choice Construction in Social Dilemma Perspectives on Scientific Error, ZOOM, Italy

Situations July 2020

Gigerenzer Symposium, Bielefeld, Germany

March 2017

121 D. Research Portraits

Teaching Since 2020 German Research Foundation (DFG), Swiss Head, Einhorn Award Committee National Science Foundation, Austrian Summer & winter term 2018 & winter term Science Foundation, Hertie School of Gover- 2019 Since 2020 nance Language, Thinking, Judgement, Deci- Committee of Ombudspersons for the Ger- sion-Making, and Consciousness, BA lecture man Psychological Society (DGPs) University of Hagen Since 2020 Summer & winter term 2018 & winter term Co-host of the Virtual Process-Tracing Semi- 2019 nar Series & Conference (DGPs) Perception, Attention, and Memory, BA lecture University of Hagen Since 2013 Summer & winter term 2018 & winter term Equal Opportunities Officer at the MPI for 2019 Research on Collective Goods Social Decision-Making, BA seminar University of Hagen Since 2014 Open Science Ambassador Summer & winter term 2018 & winter term 2019 2018-2020 Theories of Judgment and Decision-Making, Director of the Logistics Committee at the BA seminar Psychological Science Accelerator (PSA) University of Hagen

Summer term 2018 PhD workshop, Openness & Transparency, Professional Activities PhD level University of Saarbrücken Editorial Boards Winter term 2018 Science Advances (Associate Editor) PhD workshop, “Theory development & integration”, of the German Association for Journal of Experimental Social Psychology Psychology (Guest Editor of a special issue on process-tracing, 2020) Summer term 2018 Economic Psychology (Associate Editor) Module, Judgment and Decision-Making, BA lecture & seminar APS Journal of Advances in Methods and Döpfer University of Applied Sciences (pri- Practices in Psychological Science (Editorial vate) Board)

BA Theses Memberships Supervision of 48 BA theses at the University of Hagen and the private Döpfer University of European Association of Decision Making Applied Sciences. (EADM) Society of Judgment & Decision Making (SJDM) MA Theses German Psychology Association (DGPs) Supervision of 6 MA theses (University of Tübingen (1), University of Leipzig (1), Univer- sity of Göttingen (1), University of Cologne Reviewer for (2), University of Hagen (1) Nature Communications , Journal of Experi- mental Social Psychology, Journal of Person- ality and Social Psychology, Organizational Public Service Behavior and Human Decision Processes, Journal of Experimental Psychology: Learning, Since 2020 Memory and Cognition, Cognition, Journal of Program committee within the interdisci- Experimental Psychology: General, Journal of plinary German Research Foundation (DFG) Judgment and Decision Making, Experimental priority program “META-REP: A meta-scientif- Psychology, Theory & Decision, PlosOne, Euro- ic program to analyze and optimize replica- pean Economic Review, Games and Economic bility in the behavioral, social, and cognitive Behavior, Management Science, Experimental sciences”. Economics, Journal of Behavioral Research Methods, Social Psychology and Personality Since 2020 Science, etc. Founding Member of the German Reproduc- ibility Network

122 Jens Frankenreiter

Summary Report General Political?”, which investigates differences in the voting behavior of I was a Senior Research Fellow at the Advocates General at the Court, which institute from March 2017 to September correspond to the political preferences 2019. In the fall of 2018, I served as a of Member State governments vis-à- Visiting Associate Professor of Law vis European integration. The second at the University of Virginia School of study is “The Politics of Citations at the Law. Since 2018, I am also a member ECJ”, which focuses on references to of the Zukunftsfakultät working group prior case law in opinions authored by at the “Wissenschaftskolleg zu Berlin”. different judges. Both studies suggest that the political preferences of Member My research focuses on business law, State governments play a significant in particular corporate and contract law, role in the behavior of the members and the functioning of legal institu- of the European Court of Justice. tions. I am particularly interested in Contact the challenges and opportunities that Another publication that emerged from new technologies create for the legal my work on courts and judges is “Forum [email protected] system in these fields. Much of my work Selling Abroad”, co-authored with Stefan uses quantitative methods and other Bechtold and Dan Klerman. This study https://www.coll.mpg.de/ computational tools such as automated uses a series of interviews with judges, jens-frankenreiter text analysis and machine learning. court officials, and attorneys in Germany to investigate whether German judges My work at the institute can be divided sometimes engage in “forum selling”, a into two parts. In the first part, I complet- term used to describe attempts by judged a research agenda that I had started es to handle cases in a way that attracts as a PhD student at the Center for Law & more cases to their courts. In the U.S., Economics at ETH Zurich. This research such behavior has been documented, agenda focused on investigating the for example, in the area of patent law. behavior of actors involved in legal In Germany, we document that similar proceedings in Europe, a topic that is behavior can be observed in patent and under-researched in comparison with press law. We also document various the United States. This research resulted differences between forum selling in the in a number of different publications. U.S. and forum selling in German courts. Besides, I was awarded the ETH Medal for outstanding dissertations as well “Writing Style and Legal Traditions” as the SIAF Award 2018 for this work. marks the transition between the first and second parts of my work. Similar to First, in two different studies, I used a number of previous studies, this study quantitative methods to investigate investigates the behavior of judges at whether the political preferences of EU the European Court of Justice. Method- member-state governments are re- ologically, however, it is closer to many flected in the behavior of the members projects that belong to the second part of the European Court of Justice (the of my work. The study uses natural highest branch of the Court of Justice language processing and computation- of the EU) appointed by these govern- al methods to investigate whether the ments. While the study of the influence writing style of the Court has changed of the (political) background of judges over time, in a way that reflects a move on their decision-making has already away from the early dominance of received considerable attention in the judges from countries influenced by U.S., these studies are among the first French legal culture towards a court in to tackle this question at the European which all major legal European tradi- level. The first study is“Are Advocates tions are represented. Contrary to what

123 D. Research Portraits

one might expect, it finds that judges operations of U.S. online services. Both Rankings“ (with Eric Talley), which from French-speaking countries still findings have important implications for investigates strategic incentives for law seem to exert a relatively high influ- researchers and policy-makers alike. schools in the context of the potential ence on the writing style of the court. introduction of citation metrics as an “Hunting for Contracts on the Block- input to law school rankings in the U.S. The second part of my work, most of chain” (joint work with Julian Nyarko which is still ongoing, does not focus of Stanford Law School) makes an Since September 2019, I am an Associ- primarily on courts, but mostly on empirical contribution to ongoing dis- ate Research Scholar at Columbia Law different areas of business law. What cussions about the potential of “smart School and the Postdoctoral Fellow in holds this research together is a focus contracts” to replace contract law as an Empirical Law and Economics at the Ira on how text can be used to inform and infrastructure for impersonal exchange. L. Millstein Center for Global Markets enrich the legal discourse in these The project provides a large-scale, and Corporate Ownership. In this new areas. This is an important topic with descriptive overview of the landscape role, I continue the various research potentially far-ranging consequences of smart contracts implemented on projects that I began during the sec- for legal research and practice. Tradi- the blockchain platform Ethereum. We ond part of my time at the institute. tionally, the primary research method obtain information on the code of all of legal scholars was based on reading roughly 45,000 verified smart contracts and interpreting legal texts. Advances from etherscan.io and use various Publications (since 2017) in computing power, storage capacities, text analysis methods to analyze their and new developments in machine content. The study finds that there are Articles in Peer-Reviewed Journals learning and artificial intelligence allow currently no smart contracts that act Frankenreiter, J., Livermore, M. (2020). Com- researchers to conduct, for the first time, as a substitute for traditional contracts putational Methods in Legal Analysis, Annual Review in Law and Social Sciences, 16, 39–57. empirical studies directly on these texts, in a relevant range of applications. without the need to transform them first Bechtold, S., Frankenreiter, J., Klerman, D. into numerical information by means of “Computational Methods in Legal (2019). Forum Selling Abroad. Southern Cali- fornia Law Review, 93(3), 487–559. manual coding. This opens up a host of Analysis” (joint work with Michael new and exciting possibilities for legal Livermore of University of Virginia Frankenreiter, J. (2019). The Limits of Smart Contracts. Journal of Institutional and Theo- research. Besides, it also has profound School of Law) provides an overview retical Economics (JITE), 175(1), 149–162. implications for legal practice, where of how computational methods are Frankenreiter, J. (2018). Are Advocates similar tools are introduced as part of being used by legal researchers to make General Political? Policy Preferences of EU “legal tech”, i.e., initiatives attempting to large quantities of text amenable to Member State Governments and the Voting automate the work of lawyers and other legal research. For this, we document Behavior of Members of the European Court human workers in the legal industry. how these methods are affect research of Justice, Review of Law & Economics, 14(1). across the varied landscape of legal Frankenreiter, J., (2017 ). Network Analysis My work includes investigations of scholarship, from the interpretation of and the Use of Precedent in the Case Law of various phenomena in business law legal texts to the quantitative estimation the CJEU – A Reply to Derlén and Lindholm, German Law Journal, 18, 687–694. alongside methodological contributions. of causal factors that shape the law. Frankenreiter, J. (2017). The Politics of Citations at the Ecj. Policy Preferences of EU “Who Controls Online Privacy? Jurisdic- Finally, I worked on several projects that Member State Governments and the Citation tional Conflict and Regulatory Spillover lie outside my main areas of research. Behavior of Members of the European Court in the Regulation of Online Services” is The first is“Are Lawyers’ Case Selection of Justice, Journal of Empirical Legal Studies, an empirical investigation of whether, Decisions Biased? A Field Experiment 14(4), 813–857. as many observers predicted, online on Access to Justice”, another joint proj- services in the U.S. extended privacy ect with Michael Livermore. In this proj- Book Chapters protections mandated by EU law to their ect, we conduct a field experiment to ex- Dumas, M., Frankenreiter, J. (2019). Text as customers in the U.S. For this, I use a plore how attorneys in the U.S. respond Observational Data. In M. A. Livermore & D. large longitudinal dataset of privacy to initial inquiries by senders whose Rockmore (Eds.), Law as Data: Computation, Text, and the Future of Legal Analysis, 59–70. policies, assembled in collaboration with names suggest they belong to different Yoan Hermstrüwer. The results from this racial/ethnic groups. We find that inqui- Frankenreiter, J. (2019). Writing Style and Le- analysis suggest, first, that regulatory ries from (perceived) minority clients gal Traditions. In M. A. Livermore & D. Rock- more (Eds.), Law as Data: Computation, Text, spillover might be less important than receive fewer responses than inquiries and the Future of Legal Analysis, 153–190. is commonly assumed, at least in the sent under names common among per- area of data privacy law. Second, the sons identifying as white. The second results also reveal important limits on is “Hard Core Citation Strategery and the impact of EU data privacy law on the the Barely Legal Gaming of Law School

124 Work in Progress Forum Selling Abroad (with Stefan Bech- Who Controls Online Privacy? On the Global thold) Regulation of Online Services Frankenreiter, J., Who Controls Online Priva- Conference on Empirical Legal Studies LEAP Text Analysis in Law Conference, cy? Jurisdictional Conflict and Regulatory (CELS), University of Michigan UC Berkeley Spillover in the Regulation of Online Services. November 2018 Februrary 2020 Frankenreiter, J., Livermore, M., Are Lawyers’ Forum Selling Abroad Hunting for Contracts on the Blockchain Case Selection Decisions Biased? A Field Law & Economics Colloquium, University of BYU Winter Deals Conference, Park City, UT Experiment on Access to Justice. Virginia School of Law March 2020 Frankenreiter, J., Hwang, C., Nili, Y. Talley, E., November 2018 Cleaning Corporate Governance. Are Lawyers’ Case Selection Decisions 2019 Biased? A Field Experiment on Access to Frankenreiter, J., Nyarko, J., Hunting for Con- Justice tracts on the Blockchain. Are Advocates General Political? An Empir- (with Mike Livermore) Frankenreiter, J., Hermstrüwer, Y., The Global ical Analysis of the Voting Behavior of the Summer Faculty Workshop, University of Impact of European Privacy Law Advocates General at the European Court of Virginia School of Law Justice June 2020 Frankenreiter, J., Talley, E., Hard Core Citation PluriCourts Seminar Series, Oslo University Strategery and the Barely Legal Gaming of March 2019 Law School Rankings Teaching World Privacy Law, Or: Is Brussels Calling the Shots in U.S. Online Privacy? Summer Term 2017 Center for Law & Economics, ETH Zurich Analytische Methoden für Juristen Lectures and Presentations June 2019 HU Berlin (since 2017) Forum Selling Abroad Summer Term 2018 2017 Sechuan University, Chengdu, China Analytische Methoden für Juristen July 2019 HU Berlin Informal Judicial Hierarchies European Association of Law and Economics Are Lawyers’ Case Selection Decisions Fall Term 2018 (EALE), London Biased? A Field Experiment on Access to LawTech (with Michael Livermore) September 2017 Justice UVA School of Law Academica Sinica, Taipei, Taiwan Informal Judicial Hierarchies July 2019 Winter Term 2018/19 EUTHORITY Seminar Series, KU Leuven, Gesellschaftsrecht und Ökonomie Leuven Are Lawyers’ Case Selection Decisions University of Bonn October 2017 Biased? A Field Experiment on Access to Justice Summer Term 2019 Writing Style and Legal Traditions Canadian Law & Economics Association Analytische Methoden für Juristen Computational Study of the Law Working University of Toronto, Toronto HU Berlin Group, Santa Fe Institute September 2019 December 2017 Summer Term 2019: Are Lawyers’ Case Selection Decisions Corporate Law and Economics (short course) Hamburg University 2018 Biased? A Field Experiment on Access to Justice Winter Term 2019/20 Writing Style and Legal Traditions Conference on Empirical Legal Studies Gesellschaftsrecht und Ökonomie Conference on Empirical Legal Studies in (CELS), Claremont McKenna College, Uni Bonn Europe (CELS-E), KU Leuven Claremont, CA May 2018 November 2019

Forum Selling Abroad 2020 Professional Activities American Law and Economics Association Manuscript Referee (ALEA), Boston University Who Controls Online Privacy? On the Global Journal of Legal Studies, Journal of Law, Eco- May 2018 Regulation of Online Services Yale ISP Ideas Lunch, Yale Law School, nomics, and Organization, Journal of Empirical Legal Studies, American Law and Economics Forum Selling Abroad (with Dan Klerman) New Haven, CT Review, Review of Law & Economics, Law & Society for Inst. & Org. Economics (SIOE), January 2020 Social Inquiry HEC Montreal June 2018 Hard Core Citation Strategery and the Barely Legal Gaming of Law School Rankings (with Membership in Organizations Society for Empirical Legal Studies Forum Selling Abroad Eric Talley) Law and Economics Workshop LEAP Text Analysis in Law Conference, Others University of Michigan Law School UC Berkeley Co-organizer of the LawEcon Workshop at September 2018 February 2020 Bonn University, 2018-2019

125 D. Research Portraits

126 Lars Freund

I was a Research Fellow at the Max The Dependence of Crémer-McLean Planck Institute for Research on Collec- Auctions on Selfish Preferences tive Goods from 2015 to 2018. During this time, I completed my dissertation, In this paper, I study the effect of out- “Implementation in the Presence of come-based social preferences on auc- Social Preferences: A Behavioral and Ex- tion design in correlated environments. I perimental Economic Perspective”, which consider two bidders with two possible deals with the interaction between valuation types, who bid for a single humans where private information is unit object. I show that in general the present. After the submission of my dis- auction by Crémer and McLean (1985) sertation in 2018, I started working for a is not robust against outcome-based consultancy on how to apply game-the- social preferences. In the standard oretical methods. In my final year at the case of an indivisible good, selfish institute, my research was mainly about preferences are not only sufficient, but finalizing the following four papers. also necessary for the existence of a Contact truth-telling ex-post equilibrium. The binding incentive compatibility for both [email protected] Research valuation types permits the possibility of affecting the ex-post payoff of the The Role of Intention in Bilateral other bidder without consequences Trade Environments: An Experiment for the own ex-post payoff. I consider two less restrictive cases: the ex-post In a controlled laboratory experiment, implementation of a divisible good, and I study the role of intentions among Bayesian implementation. For these privately informed market participants in cases, I conclude that uncertainty over a bilateral trade environment. In contrast the distribution of outcome-based social to theoretical insights by Bierbrauer and preferences increases the volatility of Netzer (2016), I do not find empirical the expected profit for the auctioneer. support for their counterexample to the revelation principle. The authors show The Case of Correlated Valuations in that the implementation of a social Social Robust Auctions choice function equally shares the gains of trade. As predicted, the modification This study investigates the effect of increases the perceived kindness of the externality-freeness condition on the truth-telling strategy, but I conclude the optimal design of auctions, under that the unsuccessful implementation the assumption that valuation types of is due to the decreasing trust towards bidders are correlated. Again, I consider sellers to behave kindly. Although there two bidders with two possible valuation is significantly less truth-telling in this types, who bid for a single unit object. indirect mechanism, compared to the Bierbrauer and Netzer (2016) introduce direct one, I find no differences in the the externality-freeness condition to frequency of efficient trade between ensure robustness with respect to the two mechanisms. The reasoning an unknown heterogeneity of social here is that, in the indirect mechanism, preferences among bidders. I consider multiple equilibria lead to the efficient ex-post and Bayesian incentive compat- trade. I also conclude that there are no ibility and relate the results to insights differences with respect to subjective in the literature. In general, I show that well-being between the mechanisms. the first-best implementation is no longer possible under the externality-freeness constraint. For the case of Bayesian incentive compatibility, I find

127 D. Research Portraits

a continuous effect of the intensity of The Role of Intention in Bilateral Trade correlation on the auctioneer’s expected Environments: An Experiment ESA World Meeting, Berlin profit. Under ex-post incentive compat- June 2018 ibility, there are no differences for the optimal auction design given correlated and uncorrelated valuation types.

Behaviorally Efficient Remedies – An Experiment

In a joint study with Christoph Engel, we compare the behavioral efficiency of different compensation schemes (specific performance vs. expectation damages vs. reliance damages). Based on findings obtained in a laboratory experiment, we observe that specific performance seems to be behaviorally more efficient than the monetary compensation schemes. We base the observation on (1) an increased amount of beneficial trade and (2) the elicited WTP for different kinds of compensation. Further- more, we observe no difference between expectation and reliance damages, and we learn that the size of the compensation does not affect the amount of trade or the willingness to pay for compensation. In total, we conclude that contractual parties care deeply about the fulfillment of a contractual agreement.

Publications (since 2017)

Submissions Álvarez Benjumea, A., Freund, L., Luckner, K. and Winter, F. (2018). Public Signals as Coordination Devices: The Moderating Effect of Group Identity.

Lectures and Presentations (since 2017)

2018

The Role of Intention in Bilateral Trade Environments: An Experiment Thesis Workshop, Ringberg March 2018

Behaviorally Efficient Remedies: An Exper- iment ALEA Meeting, Boston May 2018

128 Minou Ghaffari

Summary Report relation between eye gaze and choice behavior. In doing so, we critically tested I was a Research Fellow at the institute the causality claims made in recent pub- from 2014 to 2018, being a member of lications in two high-powered eye-track- Susann Fiedler’s research group and the ing studies using eye gaze to predict IMPRS program. During this time, I com- other-regarding and moral choices. pleted my dissertation on underlying cognitive processes in social dilemmas. To identify the magnitude of each chan- After completing my PhD, I started nel, we exogenously varied information working as a behavioral psychologist intake by systematically interrupting for a debt-collection agency in Berlin, the participants’ decision processes PAIR Finance. Here, I am conducting in Study 1. The results showed that research in an applied setting to inves- participants were more likely to choose tigate the decision-making behavior of a predetermined target option. Because debtors. My research during my time at selection effects limited the interpreta- Contact the institute focused on the underlying tion of the results, we used a sequen- cognitive processes and mechanisms tial-presentation paradigm in Study 2. To [email protected] of human decision behavior. To do this, I partial out bottom-up effects of atten- used a game-theoretic decision envi- tion on choices, in particular, we present- ronment where the participants’ visual ed alternatives by mirroring the gaze attention was measured via eye-track- patterns of autonomous decision-making. In the following, I will provide an ers. The results revealed that final overview of the projects I worked on fixations successfully predicted choices during my last year at the institute. when experimentally manipulated (bottom up). Specifically, up to 11.32% of the Using Eye Gaze to Predict Other- link between attention and choices was Regarding and Moral Decisions driven by exogenously guided attention (Ghaffari & Fiedler, 2018) (1.19% change in choices overall), while In cooperation with Susann Fiedler, this the remaining variance was explained project was a detailed investigation of by top-down preference formation. To the two channels that connect attention investigate the level of universality of to choices: top-down and bottom-up pro- this proposed attention–choice relation- cesses. Imagine encountering a stranger ship, we tested for its context dependen- who struggles with her grocery bags. cy. The respective results showed that When considering whether to help her, the link between attention and choice the cost of your time and physical effort was systematically stronger for moral are weighed against the benefit for the than for other-regarding choices in both stranger. Thus, personal self-interest is studies. In conclusion, last fixations in conflict with what is best for someone were more strongly linked to subse- else. Does the timing of asking what you quent choices when they occurred as a want to do about this situation alter your by-product of the preference-formation subsequent choice? To shed light on the process (top-down) than when experi- processes underlying decision-making, mentally manipulated (bottom-up), and a number of studies used gaze record- we observed a context dependency of ings and provided consistent evidence the link between attention and choice. for a correlation between eye gaze and subsequent choices. Both top-down The Cost of Imperfect Memory in Social preferences and characteristics of Interactions (Ghaffari, Fiedler and von choice presentation were previously Helversen, work in progress) suggested to drive information search. The next project was a collaboration Inspired by these findings, we aimed to together with Susann Fiedler and Bettina disentangle these two drivers of the cor- von Helversen. In this project, we inves-

129 D. Research Portraits

tigated whether the ability to remember weeks. In sum, our results suggest that Dissertation how a social interaction partner has be- prosocial individuals were more likely Ghaffari-Tabrizi, M. (2018). Opening the haved is related to an individual’s social to remember their interaction partner’s black box of social preferences: essays on preference. Memory has been proposed behavior, which could protect them from underlying cognitive processes in social dilemmas (Doctoral dissertation, University being exploited in future interactions. as one of the most crucial cognitive ca- of Zurich). pacities required for successful cooperation in social dilemmas. Remembering Organization of the 10th JDM Meeting whether a person cooperated or de- for Early-Career Researchers Revise & Resubmit fected in a previous interaction enables Between 31 May and 2 June 2017, Ghaffari, M., Fiedler, S. and von Helversen, B., decision-makers to avoid being exploit- Rima-Maria Rahal and I organized the (R & R). The cost of imperfect memory in ed by free-riders. From an evolutionary 10th JDM Meeting for Early-Career social interactions. Journal of Personality and Social Psychology. perspective, the ability to remember Researchers, which took place at the an interaction partner’s behavior and institute in Bonn. The JDM meeting is an avoid exploitation should be particularly annual event organized and run by PhD Working Papers important for prosocial individuals. In students for other early-career research- Ghaffari, M. and Fiedler, S. (2018). Social three preregistered studies (two online ers. It offers a platform for PhD students value orientation predicts information search studies and one eye-tracking study), and early postdocs who are active in the in strategic environments: An eye-tracking analysis. we investigated the link between social judgment and decision-making com- preferences and recall of an interaction munity to present and discuss recent partner’s cooperation behavior. Further, research and ideas with their colleagues Lectures and Presentations we aimed to identify potential drivers in an open and relatively informal of the effect by analyzing information atmosphere. During their presentations, (since 2017) search during encoding of the part- participants had the chance to present The Power of Attention: Using Eye Gaze to ner’s behavior. Using eye-tracking, we their research and receive feedback on Bias Social Preference Choices 10th JDM Meeting for Early-Career Research- recorded the participants’ gaze behavior their own work. The keynote speaker ers, Bonn during the observation of the other play- of the meeting was Armin Falk (Univer- June 2017 ers’ previous choices in decomposed sity of Bonn), and his talk was on the games. Subsequently, the participants determinants and consequences of The Cost of Forgetting: Understanding the Link between Memory and Social Preferences were asked to recall the behavior of preferences, presenting evidence from 36th Annual Meeting of the European Group each observed player. We then used the a global study. In addition, the meet- of Process Tracing Studies, Galway individuals’ social preferences (mea- ing included three applied workshops June 2017 sured as social value orientation, SVO) on the topics of conducting online to predict the participants’ memory experiments, decision-making in civil performance. disputes and litigation, and program- Teaching The results showed that prosocial ming experiments in PsychoPy. All in Winter term 2018/19 individuals were more likely to recall an all, the meeting was a successful event, Psychologie der Entscheidung Hochschule Döpfer, Cologne interaction partner’s past behavior than and the institute once again proved proself individuals. Going beyond this to be an outstanding location to bring Summer term 2019 simple observation of choice behavior, interdisciplinary researchers together Theorien und aktuelle Befunde der Entschei- process analyses indicated that the link and develop research projects further. dungspsychologie, Fernuniversität in Hagen between SVO and explicit memory was Winter term 2019/20 partly driven by the extent of informa- Theorien und aktuelle Befunde der Entschei- tion search during the first interactions. Publications (since 2017) dungspsychologie, FernUniversität in Hagen More prosocial individuals took longer Articles in Peer-Reviewed Journals Summer term 2020 to encode information regarding their Theorien und aktuelle Befunde der Entschei- partner’s behavior and exhibited more Fiedler, S. and Ghaffari, M. (2018). The dungspsychologie, FernUniversität in Hagen thorough information searches (i.e., power of attention: Using eye gaze to predict other-regarding and moral choices. Psycho- higher number of fixations). Testing logical science, 29(11), 1878–1889. (shared for boundary conditions of the effect first authorship). Professional Activities of SVO on memory, we additionally Memberships Bouwmeester, S., Verkoeijen, P. P., Aczel, B., Member of the European Association for investigated the link between SVO and Barbosa, F., Bègue, L., Brañas-Garza, P., ... and Decision Making long-term memory for social interaction Evans, A. M. (2017). Registered replication report: Rand, Greene, and Nowak (2012). partners. The results indicated that the Reviewer for Perspectives on Psychological Science, 12(3), influence of SVO on memory did not Experimental Psychology 527–542. persist over a retention interval of three Social Psychology

130 Nina Grgić-Hlača

Research Summary soning about the fairness of using these features in algorithmic decision-making. I am a PhD student at the Max Planck We validated our framework through a Institute for Software Systems and the series of large-scale vignette-based sur- Max Planck Institute for Research on veys. We found that, in the legal scenario Collective Goods, co-advised by Krishna which we consider, people’s perceptions P. Gummadi and Christoph Engel. Prior of fairness of using a feature indeed de- to joining the Max Planck institutes, I pend on their assessments of the eight obtained an MA in Information Science underlying properties of the feature. and Philosophy from the University of Zagreb, Croatia. In Grgić-Hlača et al. (2018b), we proposed procedural measures of algorithmic fair- In my research, I study the interaction ness, which account for the perceived between humans and systems based on fairness of using features in algorithmic Machine Learning (ML). My research fo- decision-making. We also provided a Contact cuses on two main topics: (i) algorithmic submodular feature-selection algorithm, fairness, and (ii) machine-assisted deci- which optimizes the tradeoff between [email protected] sion-making. prediction accuracy and our measure of procedural fairness. We applied our mea- https://www.coll.mpg.de/ Algorithmic Fairness sures and feature-selection algorithm on nina-grgic-hlaca two real-world datasets from the legal ML-based algorithms are used to assist domain. We empirically observed that human decision-makers in a variety of our notion of procedural fairness may be scenarios, ranging from predicting risk achieved with only a small cost to certain of criminal recidivism to medical diag- common notions of distributive fairness, nostics. The potential societal impact but that some loss of predictive accuracy of these decisions has raised concerns is unavoidable. about the fairness of algorithmic decision-making. The majority of prior work Machine-Assisted Decision-Making on algorithmic fairness normatively prescribed what constitutes fair deci- ML-based decision aids are nowadays sion-making. In contrast, in my work, I frequently used to assist human deci- take a descriptive approach, to under- sion-makers in a variety of different do- stand how people perceive and reason mains. However, these machine decision about fairness in the context of algorith- aids, as the name suggests, are not the mic decision-making. Additionally, while final decision-makers – they only assist most prior work studied distributive as- human decision-makers. Hence, when pects of algorithmic fairness, I focus on designing machine-decision aids, it is procedural aspects. This line of work has crucial to go beyond focusing on the de- resulted in several publications at top-tier cision aid’s accuracy and fairness, and computer-science venues, including the to consider how human decision-makers Web Conference (WWW) and the Confer- take its advice. In my research, I focus on ence on Artificial Intelligence (AAAI). understanding how ML-based decision aids influence human decision, and on In Grgić-Hlača et al. (2018a), my co-au- identifying the factors which determine thors and I proposed a framework for un- the magnitude of this influence. This derstanding why people believe that it is line of research led to a publication at (un)fair for ML algorithms to utilize cer- the Conference on Computer-Supported tain features. Our framework identifies Cooperative Work and Social Computing eight underlying properties of features, (CSCW), a top-tier computer-science ven- such as their relevance, volitionality, and ue. reliability, which guide people’s moral rea-

131 D. Research Portraits

In Grgić-Hlača et al. (2019a), Christoph Grgić-Hlača, N., Redmiles, E. M., Gummadi, K. Understanding and Accounting for Human Engel, Krishna P. Gummmadi, and I ex- P. and Weller, A. (2018a). Human Perceptions Perceptions of Fairness in Algorithmic Deci- of Fairness in Algorithmic Decision Making: sion Making plored machine-assisted decision-mak- A Case Study of Criminal Risk Prediction. Data, Learning and Inference (DALI), Lanza- ing in the context of bail decisions. We Proceedings of the 2018 World Wide Web Con- rote, Canary Islands ran a vignette experiment with laypeople, ference, 903-912. April 2018 and studied how receiving advice from Grgić-Hlača, N., Bilal Zafar, M., Gummadi, K. Human Perceptions of Fairness in Algo- a machine decision aid influenced their P. and Weller, A. (2018b). Beyond Distributive rithmic Decision Making: A Case Study of decisions to grant or deny bail. We found Fairness in Algorithmic Decision Making: Fea- Criminal Risk Prediction ture Selection for Procedurally Fair Learning. that machine advice had a small, but sig- The Web Conference (WWW), Lyon, France Thirty-Second AAAI Conference on Artificial April 2018 nificant, effect on people’s decisions, bi- Intelligence. ased in the direction of granting bail. Pro- Human Perceptions of Fairness in Algo- viding feedback about the correctness Peer-reviewed Workshops rithmic Decision Making: A Case Study of Criminal Risk Prediction of machine predictions had no effect on Grgić-Hlača, N., Weller, A. and Redmiles, E. M. Women in Data Science Workshop @ WWW, advice-taking, and neither did monetary (2019b). Dimensions of Diversity in Human Lyon, France Perceptions of Algorithmic Fairness. Learning incentives for accuracy. Only monetary April 2018 incentives to follow machine advice were from Team and Group Diversity Workshop @ CSCW. effective, and indeed increased the influ- 2019 ence of machine advice. Grgić-Hlača, N., Bilal Zafar, M., Gummadi, K. P. and Weller, A. (2017). On Fairness, Machine-Assisted Decision-Making: Under- Diversity and Randomness in Algorithmic standing and Accounting for Human Factors In ongoing work, my collaborators and I Decision Making. Fairness, Accountability, and Explainable AI Workshop, Aarhus, Denmark are building upon this work, and studying Transparency in Machine Learning Workshop April 2019 how other properties of the machine-as- @ KDD. sisted decision-making setting influence Effects of Experiencing Classifier Design on Perceptions of Fairness people’s advice-taking behavior. In En- ICSI Summer Intern Workshop, Berkeley, gel and Grgić-Hlača (work in progress), Work in Progress California, USA August 2019 Christoph Engel and I are currently ex- Engel, C. and Grgić-Hlača, N. Machine Advice ploring how receiving warnings about with a Warning about Machine Limitations: Human Decision Making with Machine Experimentally Testing the Solution Mandat- the decision aid’s properties impact its Assistance: An Experiment on Bailing and ed by the Wisconsin Supreme Court. influence. This research was inspired by Jailing a recent ruling of the Supreme Court of Grgić-Hlača, N., Castelluccia, C. and Gumma- MPI for Research on Collective Goods, Bonn, the State of Wisconsin, which cleared di, K. P. Impact of Machine Errors on Human Germany Advice Taking in Machine-Assisted Deci- October 2019 the use of machine advice in sentencing sion-Making. only if judges are properly warned about Human Decision Making with Machine the decision aid’s limitations. Also, in Assistance: An Experiment on Bailing and Grgić-Hlača et al. (work in progress), with Jailing Lectures and Presentations Conference on Computer-Supported Coop- Krishna P. Gummmadi and other collab- (since 2017) erative Work and Social Computing (CSCW), orators, I am studying how the type and Austin, Texas, USA November 2019 distribution of a decision aid’s errors im- 2017 pacts advice-taking. Dimensions of Diversity in Human Percep- Beyond Binary Discrimination: Measures and tions of Algorithmic Fairness Mechanisms for Process Fairness Learning from Team and Group Diversity Machine Learning Summer School, Tübingen, Workshop @ CSCW, Austin, Texas, USA Germany Publications (since 2017) November 2019 June 2017 Peer-reviewed Conferences On Fairness, Diversity and Randomness in Grgić-Hlača, N., Engel, C. and Gummadi, Algorithmic Decision Making K. P. (2019). Human Decision Making with Teaching Fairness, Accountability, and Transparency in Machine Assistance. An Experiment on Bail- Winter term 2018/19 Machine Learning Workshop @ KDD, Halifax, ing and Jailing. Proceedings of the ACM on Human-Centered Machine Learning Canada Human-Computer Interaction. Saarland University August 2017 (Teaching Assistant) Speicher, T., Heidari, H., Grgić-Hlača, N., 2018 Gummadi, K. P., Singla, A., Weller, A. and Bilal Zafar, M. (2018). A Unified Approach to Quan- Beyond Distributive Fairness in Algorithmic tifying Algorithmic Unfairness: Measuring Decision Making: Feature Selection for Pro- Individual & Group Unfairness via Inequality cedurally Fair Learning Indices. Proceedings of the 24th ACM SIGKDD Conference on Artificial Intelligence (AAAI), International Conference on Knowledge Dis- New Orleans, Louisiana, USA covery & Data Mining, 2239-2248. January 2018

132 Professional Activities

Reviewer for Conference on Computer-Supported Coopera- tive Work and Social Computing, Human-Cen- tered Approaches to Fair and Responsible AI Workshop, International Workshop on Algorithmic Bias in Search and Recommen- dation, European Conference on Information Systems, Human-centered Machine Learning Workshop, Safe Machine Learning Workshop

133 D. Research Portraits

134 Werner Güth

I studied economics at the University The top priority of my recent research of Münster, where I also received my has been to develop bounded rationality doctoral degree and habilitation. I was theory in the light of empirical – in my professor for economic theory at the case, experimental data. There are now University of Cologne, the University of several (partly published) studies Frankfurt (Main), and the Humboldt Uni- versity of Berlin, before becoming the di-  whose choice data are aspiration rector of the Strategic Interaction Group levels, in 2001 at the Max Planck Institute of  whose data complement choice Economics in Jena till the end of 2014. data with data on the process of generating (non-Bayesian) beliefs, Research stays took me to various as well as forming and adapting universities and research institutions in success aspirations. Europe, Israel, Asia, Australia, and the © Tristan Vostry United States. I have tried to clarify the main method- Contact ological aspects of such research in my Since 2002, I have been an honorary recent paper “(Un)Bounded Rationality [email protected] professor of economics at the Friedrich of Decision Deliberation”. Schiller University in Jena and a member https://www.coll.mpg.de/werner-gueth of the Berlin-Brandenburg Academy From the beginning of my career, I have of Sciences. In 2010, I received hon- been interested in procedural fairness orary degrees from the universities of and have been fortunate (since the mid- Tübingen and Karlsruhe. After Jena, I 1980s) to base this on intuitive axioms was Senior Professor at the Frankfurt for “procedurally fair game forms” in School of Finance & Management (2015 contexts where agents express their (pri- to December 2016), emeritus at the Max vate) evaluations of collective outcomes Planck Institute for Research on Col- via bidding. I have tried to describe the lective Goods, Bonn, and Professor for applicability of this axiomatic approach economics at LUISS University, Rome. in my paper “Direct (Bidding) Mecha- nisms – When Are They Procedurally My main research topics are game theo- Fair?” ry, experimental economics, and microeconomics. I consider myself more as a To my own surprise, my research on social scientist with strong interests in “indirect evolution”, a general method- psychology, philosophy, (evolutionary) ology to derive the rules of the game, biology, and the political sciences. instead of exogenously imposing them, has been revived by four projects (two My own emeritus funding by the Max with Paul Pezanis-Christou, Adelaide; Planck Society will expire at the end of one with Oliver Kirchkamp, Jena; and 2020. I am extremely thankful for this one with Stefan Napel, Bayreuth). generous support and for the hospitality of the Max Planck Institute during the It is probably less surprising that, in past six years. I have cooperated with all cooperation with several co-authors, I its directors, present and former ones, am still very active in experimental re- and have truly enjoyed the inspiring search, based on a wide variety of topics research atmosphere. Of course, I will like conceding, learning, administering try to remain active with some support advice to reduce suboptimality, etc. In by the institute, even when my contract addition to studying strategic interac- with LUISS University in Rome expires. tion, we have systematically explored individual decision-making as a necessary requirement for developing “behavioral game theory”.

135 D. Research Portraits

Publications (since 2017) Angelovski, A., Di Cagno, D., Güth, W., Marazzi, Book Chapters F. and Panaccione, L. (2018). Does Heteroge- neity Spoil the Basket? The Role of Productiv- Güth, W. and Kliemt, H. (forthcoming). Corpo- Articles in Peer-Reviewed Journals ity and Feedback Information on Public Good rate Social Responsibility. In L. Degli Sacconi and G. Antoni (Eds.), Handbook on the Eco- Di Cagno, D., Güth, W. and Pace, N. (forthcom- Provision. Journal of Behavioral and Experi- mental Economics, 77, 40–49. nomics of Social Responsibility: Individuals, ing). Experimental Evidence of Behavioral Corporations and Institutions, Cheltenham: Improvement by Learning and Intermediate Angelovski, A., Di Cagno, D., Güth, W., Marazzi, Edward Elgar. Advice. Theory and Decision. F. and Panaccione, L. (2018). Behavioral Güth, W. and Kliemt, H. (2020). Experimental Güth, W. and Pezanis-Christou, P. (2020). An Spillovers in Local Public Good Provision: An Experimental Study. Journal of Economic Economics – A Philosophical Perspective. Indirect Evolutionary Justification of Risk Oxford Handbook of Philosophy. Neutral Bidding in Fair Division Games. Inter- Psychology, 67, 116–134. national Journal of Game Theory. Bruttel, L. and Güth, W. (2018). Asymmetric Güth, W. (2017). Mechanism Design and the Law. The Oxford Handbook of Law and Eco- Angelovski, A. and Güth, W. (2020). When to Voluntary Cooperation – a Repeated Sequen- tial Best Shot Experiment. Journal of Conflict nomics. Methodology and Concepts, Parisi, F. Stop — a Cardinal Secretary Search Experi- (Ed.). 1, 483–492. ment. Journal of Mathematical Psychology, Resolution, 47(3), 873–891. 98. Di Cagno, D., Galliera, A., Güth, W. and Angelovski, A., Di Cagno, D., Güth, W. and Panaccione, L. (2018). Gender Differences Submissions Marazzi, F. (2020). Telling the Other What One in Yielding to Social Influence: An Impunity Experiment. Games, 9(4). Ackfeld, V., Güth, W. (2020). Personal Infor- Knows? Strategic Lying in a Modified Acquir- mation Disclosure under Competition for Ben- ing-a-Company Experiment With Two-Sided Engel, C. and Güth, W. (2018). Modeling a efits: Is Sharing Caring? Games & Economic Private Information. Theory and Decision, Satisficing Judge.Rationality and Society, Behavior. 88(1), 97–119. 30(2), 220–246. Alberti, F., Güth, W., Tsutsui, K. (2020). Experi- Avrahami, J., Ezer, A., Güth, W., Kardosh, N., Alberti, F., Fischer, S., Güth, W. and Tsutsui, K. mental Effects of Institutionalizing Co-Deter- Kareev, Y. and Zak, U. (2020). To Be at the (2017). Concession Bargaining – An Exper- mination by a Procedurally Fair Bidding Rule. Tail of the Lions or the Head of the Foxes? imental Comparison of Protocols and Time Journal of Business Ethics. Journal of Behavioral Decision Making, 33(2), Horizons. The Journal of Conflict Resolution, 121–138. 62(9), 2017–2039. Angelovski, A., Brandts, J., Güth, W. (2020). Bidding for the Better Jobs: Novel Evidence Fischer, S., Güth, W., Kaplan, T. R. and Zultan, Avrahami, J., Güth, W., Kareev, Y. and Uske, T. on Gender Differences in Competition. Experi- R. (2020). Auctions With Leaks About Early (2017). On the Incentive Effects of Sample mental Economics. Bids: Analysis And Experimental Behavior. Size in Monitoring Agents – A Theoretical Economic Inquiry, 1-18. and Experimental Analysis. German Economic Conte, A., Güth, W., Pezanis-Christou, P. Review, 18(1), 91–98. (2017). More Money vs More Certainty? Güth, W. and Otsubo, H. (2020). Trust in Behaviour in Stochastic Alternating-Offer Generosity: An Experiment of the Repeated Di Cagno, D., Galliera, A., Güth, W., Marzo, F. Experiments. Journal of Risk and Uncertainty. Yes–No Game. Evolutionary and Institutional and Pace, N. (2017). (Sub) Optimality and Economics Review, 1-15. (Non) Optimal Satisficing in Risky Decision Crosetto, P., Güth, W. (2020). What Are You Calling Intuitive? Subject Heterogeneity as Angelovski, A., Di Cagno, D., Grieco, D. and Experiments. Theory and Decision, 83(2), 195–243. a Driver of Response Times in an Impunity Güth, W. (2019). Trusting versus Monitoring: Game. Journal of Economic Psychology. An Institutional Choice Experiment. Evolution- Di Cagno, D., Galliera, A., Güth, W. and Pace, ary and Institutional Economics Review, 16, N. (2017). Behavioral Patterns and Reduction Di Cagno, D., Güth, W., Panaccione, L., Scara- 329–355. of Sub-Optimality: An Experimental Choice file, M.C. (2019). Conceding When not Having Analysis. Theory and Decision, 85, 151–177. to Fear Conflict. An Impunity Experiment. Angelovski, A., Galliera, A. and Güth, W. Journal of Economic Psychology. (2019). Partial versus General Compulsory Di Cagnio, D., Galliera, A., Güth, W., Pace, N. Solidarity: An Experimental Analysis. Homo and Panaccione, L. (2017). Experience and Güth, W. (2020). Direct Bidding Mechanisms Oeconomicus, 36(3-4), 249-279. Gender Effects in Acquisition Experiment – When are They Procedurally Fair? Journal of Institutional and Theoretical Economics. Chlaß, N., Güth, W. and Miettinnen, T. (2019). With Value Messages. Small Business Eco- Purely Procedural Preferences – Beyond nomics, 48, 71–97. Güth, W. (2020). (Un)Bounded Rationality of Procedural Equity and Reciprocity. European Di Cagno, D., Galliera, A., Güth, W. and Panac- Decision Deliberation. Journal of Economic Journal of Political Economy, 59, 108–128. cione, L. (2018). Intention-Based Sharing. Behavior and Organization. Güth, W., Klempt, C. and Pull, K. (2019). Games, 9(2), 22. Güth, W., Kirchkamp, O. (2020). Believing in Cognitively Differentiating between Sharing Güth, W. and Ploner, M. (2017). Mentally Per- Corporate Social Responsibility – An Indirect Games: Inferences from Choice and Belief ceiving How Means Achieve Ends. Rationality Evolutionary Analysis. Journal of Institutional Data of Proposer Participants. Economics and Society, 29(2), 203-225. and Theoretical Economics. Bulletin, 39(1), 605-614. Güth, W., Marazzi, F., Panaccione, L. (2020). Güth, W., Pull, K., Stadler, M. and Zaby, A. K. Exploiting Ultimatum Power When Respond- (2019). Compulsory Disclosure of Private Journal Articles (not peer-reviewed) ers are Better Informed – Theoretical and Information: Theoretical and Experimental Anjum, G. and Gueth, W. (2019). Becoming Experimental Analysis of Conflict Resolution. Results for the Acquiring-a-Company Game. Generous and Respecting Honor: An Exper- Journal of Conflict Resolution. Journal of Institutional and Theoretical Eco- iment Based on Donation and Trust-Game Adam, M., Brecht, F., Güth, W. Koroleva, K. nomics, 175(3), 502–523. With Multiple Trustees. IBA Business Review, (2019). Evaluating Own and Other’s Pros- 14(2), 47–64. pects. Evolutionary and Institutional Econom- ics Review.

136 Cappeletti, D., Güth, W., Ploner, M. (2019). Mo- – Egalitarian Corporate Governance – 2020 tivational Heterogeneity Behind Conditional Experimental Exploration of Decision Cooperation: The Role of Reciprocity, Inequity Codetermination in Terms of Fair Bidding Methodological Dualism – Its Philosophical Aversion, and Heuristic Matching in Public – On Behavioral Economics and Ultimatum- and Behavioral Perspective Goods Provision. Experimental Economics. Like Experiments Lecture at the Private University Schloss – Push, Pull or Both – On Indirect Evolution Seeburg Avrahami, J., Güth, W., Kareev, Y., Ploner, M. – (Sub)Optimality Versus (Non)Optimal March 2020 (2018). Impulse Balancing Versus Equilib- Satisficing – A Portfolio Choice Experi- rium Learning – An Experimental Study of ment Competitive Portfolio Selection. Journal of Four “Schumpeter Lectures”, University of Teaching Evolutionary Economics. Graz Bruttel, L., Güth, W., Hertwig, R., Orland, November 2017 A. (2018). Do People Harness Deliberate LUISS Rome Department of Economics and Ignorance to Avoid Envy and Its Detrimental 2018 Finance Effects? Nature Human Behavior. (Sub)Optimality versus (Non)Optimal Satis- Winter Term 2017 till Summer Term 2019 ficing – A Portfolio Choice Experiment Course Title: Consumer Behavior in DIM (with Working Papers Workshop at the Max-Planck-Institute for Tax Daniela Di Cagno) Alberti, F., Güth, W., Kliemt, H., Tsutsui, K. Law and Public Finance Winter Term 2017 till Summer Term 2019 (2020). Implementing Stakeholder Partici- March 2018 Course Title: Managerial Decision Making pation as “Egalitarian Bidding” – The Test of (with Luca Panaccione) the Kantian Pudding is in the Institutionalized Bounded Rationality – Theory and Experi- Eating. ments On Behavioral Economics and Ultima- Summer/Winter Term 2019/2020 Angelova, V., Güth, W., Kocher, M. (2019). tum-Like Experiments Course Title: Managerial Decision Making Co-evolving Wage Discrimination and Gift Workshop at the University of Bologna, (with Vittorio Larocca) Exchange When Employing Agents (Not) June 20018 Differing in Tenure. Winter Term 2019/2020 2019 Course Title: Experimental and Behavioral Bruttel, L., Güth, W., Nithammer, J., Orland, A. Economics (with Noemi Pace) (2019). The Effect of Voluntary Transfers in the Stochastic Ultimatum Game. Social & Strategic Interaction – In View of Methodological Dualism Winter Term 2020/2021 Güth, W., Otsubo, H. (2018). Whom to Blame? Presentation at the Wissenschaftszentrum Course Title: Experimental and Behavioral An Experiment of Collective Harming and Berlin Economics (with Irene Buso) Punishing. February 2019

On the Architecture of Social and Strategic Projects (experiments run) Interaction June 2017 – December 2019 Presentation at the University of Verona Decision Making and Game Playing March 2019 LUISS Guido Carli Rome Hiding and Revealing when Acquiring a Com- pany – An Indirect Evolutionary Analysis Workshop at the Max-Planck-Institute for Tax Lectures and Presentations Law and Public Finance (since 2017) April 2019

2017 On Behavioral Economics and Ultimatum- Like Experiments Reinhard Selten – Leading Scholar of Perfect University of Vienna and Bounded Rationality and Pioneer of Ex- June 2019 perimental and Interdisciplinary Research Presentation in honor of Reinhard Selten, Methodological Dualism – Its Philosophical University of Frankfurt and Behavioral Perspective March 2017 Lecture at the University of Nottingham October 2019 Egalitarian Corporate Governance – Experi- mental Exploration of Decision Codetermina- Methodological Dualism – Its Philosophical tion in Terms of Fair Bidding and Behavioral Perspective Presentation at the Luxembourg School of Lecture at the University of Middlesex Finance November 2019 September 2017 Methodological Dualism – Its Philosophical and Behavioral Perspective Seminar at the University Tor Vergata, Rome November 2019

137 D. Research Portraits

138 Hanjo Hamann

My research addresses law and research through my JSD-equivalent its interdisciplinary interfac- doctoral thesis (Dr. iur.) on the “methods es in five broad categories: and epistemic value of empirical research in law” in 2014 and a consecutive Law and Digitalisation. In recent years, PhD-equivalent dissertation (Dr. rer. pol.) the legal academy has been increasingly on “market myopia and agent delegation addressing the challenges that digi- in economic decision-making” in 2016. talization places on the existing legal My own research agenda centers on frameworks. For instance, I have been what I called “evidence-based jurispru- concerned with blockchain regulation, dence”, and resulted most recently in as I was designated both to report on projects on methodological standards its high-level discussion among civil for – and future prospects of – ques- law professors in Germany (AcP 2018) tionnaire research in law (AcP 2017; and to serve as a lead editor for the GJZ-Jahrbuch 2018), in a conference Stanford Technology Law Review (STLR) report on current debates in empirical Contact in the academic year 2019/20, where legal studies (JZ 2018), and in a paper I coordinated the blockchain editorial written jointly with a South African [email protected] team. The latter came as part of my co-author on experimentally studying recent SPILS fellowship at Stanford Law cultural decision-making (REE 2018). In https://www.coll.mpg.de/hanjo-hamann School, where I obtained a Master of the mid-2019, I joined colleagues at the in- Science of Law degree (J.S.M.) in June stitute to co-host an in-house workshop 2020, as well as the Stanford Gradu- with guests from Germany, Italy, and the ate Certificate in Digital Humanities US, discussing “experimental compar- (GCDH) in September 2020. Upon my ative law” approaches, and also to co- return to Germany, I was invited by the found a scholarly blog on “legal empirics Weizenbaum Institute for the Networked in Europe” (www.LegalEmpirics.com). Society (“The German Internet Insti- tute”) and worked, during the summer Legal Corpus Linguistics. In recent of 2020, as a Weizenbaum Fellow on years, empirical legal studies have a project concerning the digital availa- begun to intersect with a branch of bility of German court decisions. Over language sciences called corpus the last three years, I have been both a linguistics, which analyzes statistical user of digital legal corpora, e.g., for my patterns in big data (of legal text). After historical review of post-war public law teaming up with corpus linguist Friede- commentary (AöR 2018), and a producer mann Vogel in 2014, we established a of new legal datasets such as www. research group on “Computer Assisted LegistiK.de. This is a digital collection Legal Linguistics (CAL²)”, supported of handbooks and guidance documents by an initial grant from the Heidelberg on the practice of drafting and editing Academy of Sciences that expired in parliamentary laws (“legistics”), which 2017, but was subsequently renewed for I launched in 2019 as a public research another two years. This enabled us to resource, publishing subsequently on publish a special journal issue covering the future prospects of digital legis- the first international conference on tics in Germany (ZG 2020; JZ 2020). legal corpus linguistics which we had hosted previously (JLL Special Issue Empirical Legal Studies. In addition to 2017), to contribute to the first US con- the challenges of digitalization, legal ference on “Law & Corpus Linguistics” scholars increasingly acknowledge as the sole international guests (BYU L. the research potential of digital data Rev. 2018), to review the nascent field in to enrich legal interpretation through a joint white paper by our working group empirical methods and quantitative (Law & Soc. Inq. 2018), and to host statistics. I started being involved in this another conference in 2019 that brought

139 D. Research Portraits

together linguists and legal profession- of Bremen (2016–2018), as well as a Hamann, H. and Vogel, F. (2017). Evi- als from Germany. In my additional pub- summer school on “legal research and dence-Based Jurisprudence meets Legal Linguistics. Unlikely Blends Made in Germany. lications on legal linguistics, I reviewed its future in a digital age” at Sichuan Brigham Young University Law Review (BYU L. and discussed prior work on and the University in Chengdu, China (2019). My Rev.), 6, 1473–1502. other recent publications – such as on theories behind German legal linguistics Hamann, H. and Vogel, F. (2017). The Fabric (Handbuch Sprache im Recht 2017), U.S. teaching German sales law (ZJS 2018) of Language and Law. Towards an Inter- textualism (Recht ist kein Text 2017), and on evidence-based bar review (ZJS national Research Network for Computer and law and cultural linguistics (ARSP 2020) – were inspired by my experienc- Assisted Legal Linguistics (CAL²) (special issue introduction). International Journal of es while teaching at the universities 2018). Apart from such substantive Language & Law (JLL), 6, 101–109. work, I serve as an editor-in-chief for of Bonn and Mannheim. Following a the open-access journal of the Inter- summer school on law and linguistics national Language & Law Association, that I taught in France together with Journal Articles (not peer-reviewed) JLL (www.LanguageAndLaw.eu), and Friedemann Vogel, I summarized much Hamann, H. (2020). Verbesserung der reported on the journal’s progress during of our course material in a paper on Gesetzgebung. Tagung der Bayer-Stiftung für the triennium 2016–2018 when I was the use of irony in legal contexts (NJW deutsches und internationales Arbeits- und Wirtschaftsrecht am 17. Mai 2019 in Leverku- still its managing editor (JLL 2019). 2020). Throughout the last three years, I sen. Juristenzeitung, 75, 84–86. have also maintained an online portal on Hamann, H. (2020). Ironie im Rechtswesen. Open Legal Science. Editing an open-ac- “law school mnemonics” (www.Esel- Neue Juristische Wochenschrift (NJW), 73, cess journal is one of the ways in which BrueckDich.de), which playfully inspires 713–718. I try to introduce legal scholars to the students to use psychological evidence Hamann, H. (2020). Drei Desiderate zur Wis- open-science and open-data movement. to boost their law exam performance. senschaft von der Gesetzestechnik – www. After completing a grant-based “Free LegistiK.de. Reflexionen nach dem dritten Knowledge Fellowship” by Wikimedia Jahrestreffen des länderübergreifenden „Netzwerks Normprüfung“. ZG, 35, 65–83. Germany and the Stifterverband in Publications (since 2017) 2016/17, I published and continually Hamann, H. (2018). 70 Jahre Marginalien des deutschen Staatsrechts. Nachschau auf ein updated the “Federal Courts Dataset” Articles in Peer-Reviewed Journals vergessenes Kapitel der Nachkriegspublizis- (www.Richter-im-Internet.de), reporting Hamann, H. (2019). The German Federal tik. Archiv des öffentlichen Rechts, 143(2), about this open dataset and its meth- Courts Dataset 1950–2019. From Paper Ar- 282–311. chives to Linked Open Data. Journal of Empiri- odological innovations in both Germany Hamann, H. (2018). Empirische Methoden cal Legal Studies (JELS), 16(3), 671–688. and the U.S. (fhi 2017, JurPC 2018, für die Rechtswissenschaft. Juristenzeitung, JELS 2019). I also engaged in public Hamann, H. (2019). Die Internationale 73(6), 291–293. Zeitschrift für Rechtslinguistik JLL. RW (Son- outreach regarding the digital avail- Hamann, H. and Hoeft, L. (2017). Die em- derheft), 148–156. ability of legal texts (LTO 2017, 2018), I pirische Herangehensweise im Zivilrecht. organized an open-access workshop at Hamann, H. (2019). Lizenzmodelle rechtswis- Lebensnähe und Methodenehrlichkeit für die the Center for Interdisciplinary Research senschaftlicher Internetzeitschriften. Zur juristische Analytik? Archiv für die civilistische vernachlässigten normativen Dimension des Praxis (AcP), 217(3), 311–336. in Bielefeld, where I have served as a „Open Access“. RW (Sonderheft), 85–111. “Young ZiF” Fellow since 2016, and I Hamann, H. and Hürlimann, D. (2019). Open Book Chapters co-hosted an international conference Access bei der Veröffentlichung rechtswis- for some 70 attendees on “Open Access senschaftlicher Fachliteratur. Was soll das? Hamann, H. (2019). Marken- und Wettbe- for the Legal Academy” in Frankfurt RW (Sonderheft), 3–30. werbsrecht als Vorbilder für die Vertrag- 2018. This conference resulted in a sauslegung? Demoskopische Befragung- Hamann, H. and Vogel, F. (2019). Seven Years smethoden und ihre ungewisse Zukunft. journal special issue that I co-edited of Language & Law. Editors’ Progress Report In: Christandl / Laimer /Nemeth / Skarics / with a Swiss colleague, Daniel Hürli- on the Journal of the International Language Tamerl / Trenker / Voithofer / Walch (Eds.), & Law Association. International Journal of mann, and which included three texts Intra- und Interdisziplinarität im Zivilrecht. Language & Law (JLL), 8, 1–8. of my own (RW-Sonderheft 2019). Jahrbuch junger Zivilrechtswissenschaftler, Vogel, F., Hamann, H. and Gauer, I. (2018). Baden-Baden: Nomos, 135–153. Computer Assisted Legal Linguistics: Corpus Legal Didactics. Another area which Hamann, H. and Nicholls, N. (2018). Group Analysis as a New Tool for Legal Studies, Law Identity in Intermediated Interactions. I attempt to infuse with digital meth- & Social Inquiry (LSI), 43, 1340–1363. Lessons from a Trust Game with Delegation odologies is the nascent field of the Hamann, H. (2017). Empirische Erkenntnisse in South Africa. In: Gunnthorsdottir / Norton didactics of teaching law. I introduced in juristischen Ausbildungsarbeiten. Prü- (Eds.), Experimental Economics and Culture, law students to the use and limits of em- fungsschema, Zitier- und Arbeitshilfen für das Emerald Publishing, Bingley (UK), 227–264. pirical research (JURA 2017) and taught Jurastudium und danach. JURA – Juristische Hamann, H. (2017). Strukturierte Rechtslehre Ausbildung, 39, 759–769. a graduate seminar on this topic at the als juristische Sprachtheorie. In: E. Felder & University of Gießen (2018), a recurring F. Vogel (Eds.), Handbuch Sprache im Recht, Berlin, XIX, 175–186. undergraduate course at the University

140 Hamann, H. (2017). Text, Kontext und Textu- Lawyer CEOs. Comment on Henderson, Die Sprache der Verträge – und was Wer- alismus in der juristischen Auslegung. Frank Hutton, Jiang, & Pierson bung damit zu tun hat Easterbrook neu gelesen und übersetzt. In: CELSA: 1st Conference on Empirical Legal Junges Forum des Käte Hamburger Kollegs F. Vogel (Ed.), Recht ist kein Text: Studien zur Studies in Asia, Taipei „Recht als Kultur“, Bonn Sprachlosigkeit im verfassten Rechtsstaat, 15 June 2017 11 January 2018 Berlin: Duncker & Humblot, 135–150. Evidence-Based Jurisprudence meets 2019 Hamann, H. (2017). Müssen Richter mit Legal Linguistics. Unlikely Blends Made in allem rechnen? Empirische Realitäten im Germany Pricing What You Cannot Buy: Consistent Rechtssystem. In: Max-Planck-Gesellschaft BYU Law & Corpus Linguistics Conference (Ed.), Jahrbuch 2016. Valuation of Non-Market Goods by Judges 3 February 2017 and Lawyers? Hamann, H. and Vogel, F. (2017). Computerg- Academia Sinica Empirical Legal Studies estützte Rechtslinguistik (CAL2). Das Gewirk Lawyer CEOs. Comment on Henderson, Conference, Taipei von Sprache und Dogmatik des Rechts am Hutton, Jiang & Pierson 24 July 2019 Beispiel des JuReko-Referenzkorpus. In: CELSA: 1st Conference on Empirical Legal Heidelberger Akademie der Wissenschaften Studies in Asia, Taipei Resources for Studying the Judiciary: The (Ed.), HAW Jahrbuch 2016. 15 June 2017 German Federal Courts Dataset 1950-2019 International Academic Conference on Empir- Hamann, H. and Vogel, F. (2017). Die kritische Der freie Zugang zu wissenschaftlicher ical Legal Studies, Chengdu Masse. Aspekte einer quantitativ orientierten Fachliteratur, am Beispiel der Rechtwissen- 20 July 2019 Hermeneutik am Beispiel der computerg- schaft estützten Rechtslinguistik. In: Schweiker / Zentrum für interdisziplinäre Forschung: Positivism in Law? Thoughts on a Common Hass / Novokhatko / Halbleib (Eds.), Messen Wintertreffen des Jungen ZiF, Bielefeld Misconception About Legal Thinking und Verstehen in der Wissenschaft. Inter- 27 January 2017 Sichuan University Law Faculty Summer disziplinäre Ansätze, Wiesbaden: Verlag J.B. Camp Opening Talk, Chengdu Metzler (Springer Fachmedien), 81–95. Sprache und Technik der Gesetzgebung / 10 July 2019 Redaktionsfehler aus dem Anwenderblick Fachtagung Legistik des Netzwerks deut- On Quantifying Habitability: Judicial Meth- scher Rechtsnormprüfer, Berlin ods to Calculate Rent Reduction in Tenancy Prizes and Honors 19-20 January 2017 Contracts 2019 Karlsruhe Institute of Technology: KIT semi- Pupil of the American Inns of Court, William 2018 nar series „trends in research”, Karlsruhe A. Ingram Inn, Santa Clara 6 June 2019 Gesetzestechnische Möglichkeit- 2020 2018 en zur Gestaltung gut strukturierter Manfred Fuchs Prize of the Heidelberg Acad- Rechtsvorschriften Rent, Reduction, and Reason: An Incentiv- emy of Sciences (HAdW) BMJV: 4. EU-Symposium zur Verständlichkeit von Rechtsvorschriften, Berlin ized Vignette Survey on the Economic Value of Lease Law Remedies 2018 15 November 2018 Law and Society Association: LSA Annual Postdoctoral Scholarship by Daimler and Conference #44, online Benz Foundation, Ladenburg Panel, “Future Research on Computers, Language, and Law” 29 May 2020 2018 International Language and Law Association: Property & Psyche. Tracing the Trajectory 2nd Prize in Science Slam on “Open Codes. Focus Workshop, Copenhagen of Tenancy through the Lens of Cultural Living in Digital Worlds”, Karlsruhe 8 September 2018 Psychology Legal Research in Progress (LRIP) Seminar, 2017 The German Federal Courts Dataset & Van- Stanford Law School Award by German President Steinmeier for ishing Trials, Settlement Judges? (Com- 21 January 2020 “Landmark Idea” in Research ment) CELSE: 2nd Conference on Empirical Legal Studies in Europe, Leuven Lectures and Presentations 1 June 2018 Conferences and Workshops (since 2017) Why European Lawyers Call Their Trade Organized a “Science” – Their Dynamical Systems 2017 Perspective Conference on open access for legal studies, Intercontinental Academia Laws: Rigidity and Exzellenzcluster Normative Ordnungen, Computer Assisted Legal Linguistics (CAL²) Dynamics, Singapore Frankfurt/Main ILLA: International Language and Law Associ- 20 March 2018 70 participants (D/A/CH), budget of 8,000 €, ation Relaunch, Freiburg with Hürlimann & Peukert, www.jurOA.de 8 September 2017 Empirical Metrics as a Legal Decision Sup- 18-19 October 2018 port Marken- und Wettbewerbsrecht als Vorbilder German-Israeli Foundation: GIF Young Scien- Workshop on language-use determination in für die Vertragsauslegung? tists’ Meeting, Potsdam law, Academy of Sciences, Heidelberg 28. GJZ-Jahrestagung „Intra- und Interdiszi- 22 February 2018 29 May, budget of 8,000 €, with Walter & plinarität im Zivilrecht“, Innsbruck Vogel, www.CAL2.eu 7 September 2017 9-10 May 2019

141 D. Research Portraits

Workshop on experimental comparative law, Professional Activities Max Planck Institute for Research on Collec- tive Goods, Bonn 14 participants (U.S. and Germany), Editorial Boards with Engel & Frankenreiter, coll.mpg.de/ Editor-in-chief, International Journal of events/18906/73692 Language and Law (JLL) 23-24 May 2019 www.languageandlaw.de

Topic day on open access, especially in book Founding co-editor, Law’s Empirics: sciences, University of Bielefeld Legal Empirics in Europe (L|E) 16 participants, with Florian Muhle, as part of www.legalempirics.com the “Junge ZiF” summer meeting Lead Editor 2019/20, Stanford Technology 5 July 2019 Law Review (STLR) stlr.stanford.edu Teaching Fellowships Summer term 2017 Empirische Forschung im Recht Fellowship from the Weizenbaum Institute for University of Bremen the Networked Society, Berlin

Winter term 2017/18 ICA Fellowship from the University-Based Sprache und Interaktion im Recht Institutes for Advanced Study, Singapore/ University of Siegen Birmingham Fellowship at the Young ZiF, Center for Inter- Winter term 2017/18 disciplinary Research, Bielefeld Klausurtechnik und Fehlerquellen im Zivil- recht Elected Spokesperson of Junior Fellows at University of Bonn the Heidelberg Academy of Sciences (HAdW)

Winter term 2017/18 Examensrepetitorium Schuldrecht AT University of Mannheim

Summer course 2018 Macht und Ironie in Sprache, Medien und Recht German Academic Scholarship Foundation

Summer term 2018 Empirische Methoden für die Rechtswissen- schaft University of Gießen

Summer term 2018 Empirische Forschung im Recht University of Bremen

Winter term 2018/19 Klausurtechnik und Fehlerquellen im Zivil- recht University of Bonn

Winter term 2018/19 Examensrepetitorium Schuldrecht AT University of Mannheim

Summer term 2019 Textlinguistik des Rechts University of Zurich

Winter term 2019/20 Ironie in Sprache und Recht University of Siegen

Summer course 2019 Legal Research and its Future in a Digital Age Sichuan University (UIP)

142 Carina Hausladen

Before joining Christoph Engel’s group which of the participants in a tax-eva- in October 2017, I completed a Master’s sion game intends to lie. Knowledge degree in Economics. In October 2020 about future decisions in the moral I joined Dirk Helbing’s group at ETH context is valuable for several reasons, Zürich as a postdoctoral researcher. My e.g., a targeted intervention could be research investigates decision-making assigned to “future liars” to increase in various contexts with machine-learn- their potential to answer honestly. ing methods. More specifically, I ask: Can we nudge people towards being Not all economic games are struc- more honest? Can we use language tured such that a rational player has to find out who lies? Which factors to lie to earn the highest payoff. In influence a judge’s decision, and how do a public-goods game, a subject can people cooperate? In order to answer contribute nothing of his or her initial these questions, I work with experi- endowment to the public good and mental and field data. The methods I can gain money from the amount Contact deploy are highly interdisciplinary and redistributed. Even if the Nash Equi- range from classical econometrics to librium of this game is zero contri- carina.hausladen©gess.ethz.ch mouse-tracking and machine-learning. butions, different strategy profiles with positive contributions are found https://www.coll.mpg.de/ Together with Olexandr Nikolaychuk, I in experimental data. Together with carina-hausladen study a game where participants can lie Christoph Engel and Marcel Schubert, I without facing the risk of being punished investigate those strategy profiles from (Hausladen and Nikolaychuk, 2020, pre- a theoretical and empirical perspec- registered trial). In this context, rational- tive (Engel et al., work in progress). ity would predict individuals to claim the highest possible monetary payoff, but in I have just outlined three games in which reality, many subjects report sub-optimal experimental studies have found irratio- payoffs in favor of an honest answer. nal behavior. In this context, one question is whether honesty is an intuitive response or Together with Marcel Schubert and whether much deliberation is needed. Elliott Ash, I investigate irrational deci- There are opposing opinions in literature sions outside of the laboratory, and in a because researchers have found either legal context (Hausladen et al., 2020). the truth or the lie as being human’s A rational choice in the legal framework default behavior. We solve this puzzle should be based on law and statutes. by introducing a new modification to However, research shows that external a die-in-the-cup game combined with variables, such as a judge’s charac- time pressure. Our main finding is that teristics, influence such decisions. To time pressure leads to more dishonest capture such a relationship, the depen- behavior, but only if the regular die is dent variable, namely the legal decision, used. We also find that, when given needs to be modeled in a measurable the time to deliberate, the participants form. Our study maps the written opin- generally report lower values if the ion text of judges onto a two-dimension- regular rather than the color die is used. al scale representing political ideology.

Instead of investigating the default Most of the research in the field of answer, together with Martin Fochmann behavioral economics draws upon and Peter Mohr, I analyze the responses traditional econometrics for data evalu- that participants plan to give (Hausladen ation. It is only recently that tools from et al., 2020, preregistered trial). More other disciplines, such as computer specifically, I analyze written language science, are used to provide research obtained from group chats to determine insights into behavioral economics.

143 D. Research Portraits

One tool that I borrow from psychol- opinions by human coders. Training 2018 ogy research is mouse-tracking. This an automated classifier is especially technique sheds light on the deci- useful in this context, as due to re- C-SEB Gender Research Grant, University of Cologne, Cologne, Germany, 4000 €. sion-making process, instead of just source intensity of labeling, only a small observing the final report, which is the fraction, less than 5%, of all available current practice in the literature about judicial opinions is labeled so far. Lectures and Presentations (dis-)honest decision-making. More (since 2017) specifically, in Hausladen and Niko- Apart from text, another instance of laychuk (2020, preregistered trial), we data that requires machine-learning 2018 deploy mouse-tracking and develop a techniques is multi-round decisions, Color Me Honest! Mouse Tracking, Time new evaluation metric that expands with temporal and inter-group depen- Pressure, and (dis-)Honest Behavior the traditional two choice options dencies. More concretely, in Engel et 6th Swiss Young Researchers Workshop in screen setup to more choice options. al. (work in progress), we use unsu- Behavioral Economics and Experimental Re- pervised machine-learning to find search, University of Neuchâtel, Switzerland September 2018 Even if data from laboratory experiments strategies played by participants. The clusters found will be interpreted in are structured, and only a fraction of the 2019 size of what would be considered Big the light of various learning models. Data, complexity still exists to such a de- Classifying (dis-)Honest Decision-making gree that it is hard or even impossible to Based on Experimentally Collected Chat Data 12th IMPRS Uncertainty Thesis Workshop, reduce it with traditional econometrics. Publications Wittenberg, Germany These problems arise, for example, for March 2019 text data and multi-round decisions, with Articles in Peer-Reviewed Journals temporal and inter-group dependencies. Hausladen, C. I., Schubert, M. H., Ash, E. Text Classification of Ideological Direction in (2020). Text Classification of Ideological Judicial Opinions Direction in Judicial Opinions. International PELS Replication Conference, Claremont Much behavioral experimental re- Review of Law and Economics, 62, 105903. McKenna College, Claremont, California search allows for communication, for April 2019 example in the form of chats between Pre-registered Trials Color Me Honest! Mouse Tracking, Time participants. However, in many cases, Pressure, and (dis-)Honest Behavior chat data are hardly analyzed at all Hausladen, C. I., Nikolaychuk, O. (2020). Color Sixth International Meeting on Experimental because language is too complex to me Honest! Time Pressure and (Dis-)Honest and Behavioral Social Sciences (IMEBESS), be captured by a simple model. An Behavior. AEA RCT Registry. Utrecht University, Utrecht, Netherlands May 2019 alternative solution would be to assess Hausladen, C. I., Fochmann, M., Mohr, P. each piece of written text individually, (2020). Using Natural Language Processing to Enhance Compliance Behavior. AEA RCT 2020 but this approach is very resource-con- Registry. suming. A possible solution is natural Identifying Theories about the Composition language-processing, which allows us of the Type Space through Cluster Analysis Work in Progress of Linear Public Good Experiments to analyze the text in a resource-effi- Amsterdam Cooperation Lab, Vrije Universite- cient way. In Hausladen et al. (2020, Engel, C., Hausladen, C. I., Schubert, M. H., it Amsterdam, Amsterdam, Netherlands preregistered trial), we use natural Identifying Theories about the Composition February 2020 language-processing to analyze chat of the Type Space through Cluster Analysis of Linear Public Good Experiments. texts from a tax-evasion experiment. More specifically, a classifier is trained Teaching to label chat text as either “honest” or Winter term 2018/2019 “dishonest”, depending on the income Scholarships and Honors Advanced Analytics and Applications stated after the written conversation. 2019 University of Cologne, Chair of Sustainable Such an approach can be classified Energy and Economics, Cologne, Germany as supervised machine-learning. C-SEB Startup Grant, University of Cologne, Cologne, Germany, 3000 €.

In Hausladen et al. (2020), we use IPAK Travel Grant, DAAD University of Co- supervised machine-learning as well. logne, Cologne, Germany, 1500 €. For training, I exploit political ideology Travel Grant, Empirical Legal Studies Replica- tion Conference, Claremont, California, $ 500. labels that were assigned to judicial

144 Martin F. Hellwig

As in previous years, work in the period distributions of characteristics can be 2018–2020 proceeded in several areas, defined even though, the characteristics pure theory, as well as the theory and of different agents are (essentially) in- political economy of systemic risk in the dependent. Using Sun’s approach in the financial sector, financial regulation, and context of the Harsanyi/Mertens-Zamir monetary policy. model is not quite trivial because Sun’s approach involves a fixed underlying probability space, but the analysis of Pure Theory strategic behavior under incomplete information is concerned with agents’ In the area of pure theory, I have beliefs, i.e., conditional distributions. (co-)written two major papers. Second, the paper shows that the de- “Incomplete-Information Games in composition of uncertainty into a macro Large Populations with Anonymity” and a micro component can be derived Contact provides theoretical foundations for from conditions of anonymity. One such models of strategic interdependence condition requires that agents’ types be [email protected] under uncertainty that have a continu- essentially pairwise exchangeable; this um of agents and a decomposition of condition assumes a common prior. https://www.coll.mpg.de/martin-hellwig uncertainty into a macro component Another condition, which I call anonym- and an agent-specific micro component, ity in beliefs and which is what matters with a law of large numbers for the for strategic behavior, requires that, from latter. Such models are frequently used the perspective of (almost) any one in applied work, including some of my agent‘s beliefs, the other agents’ types own. However, their foundations have be essentially pairwise exchangeable. I been unclear. In particular, what is the show that, if beliefs are given by regular relation between these models and the conditional distributions under a given standard Harsanyi/Mertens-Zamir mod- prior, then for almost every agent, ano- el of strategic interdependence under nymity in beliefs holds almost surely if incomplete information? Further, should and only if, under the common prior, the we think of the decomposition of uncer- agents’ types are essentially pairwise tainty into aggregate and agent-specific exchangeable. With anonymity in beliefs components as being introduced ad as a sort of conditional exchangeability hoc or can this decomposition itself be condition, this result is not contained derived from some deeper properties in the work of Sun and his co-authors. of the models? Finally, how should we deal with the mathematical difficulties By Sun’s version of de Finetti’s theorem, inherent in the notion of a continuum of exchangeability is equivalent to con- agents with agent-specific uncertainty? ditional independence with identical conditional distributions; moreover, in The paper makes three important the framework of a Fubini extension, an contributions. First, it develops a version exact conditional law of large numbers of the Harsanyi/Mertens-Zamir model holds. Macro uncertainty can therefore of strategic interdependence under in- be identified with uncertainty about the complete information with a continuum cross-section distribution of types in the of players. The probabilistic/measure population. Conditionally on this distri- theoretic framework is based on Sun’s bution, the agents’ types are indepen- notion of a Fubini extension of the prod- dent with a common conditional prob- uct of the space of states of nature and ability distribution that is equal to the the space of agents. The basic idea is to cross-section distribution. All strategi- enrich the algebra of measurable events cally relevant aspects of agents’ beliefs to such an extent that cross-section are then contained in their macro beliefs

145 D. Research Portraits

about the stochastic properties of the nism for a population that is enlarged depend on the outcome considered, cross-section distribution of types and by a set of dummy voters with fixed but the mapping from outcomes to in their beliefs about the cross-section and known preference peaks. Moulin thresholds must be non-decreasing. distribution of other agents’ strategies. (1980) also showed that, if a social choice function can be implemented In providing a link between social choice Third, the paper shows that, if the by a generalized median-voter mech- theory and voting, the analysis enhanc- Fubini extension is sufficiently rich, the anism, then it is group strategy-proof es our understanding of voting. The formalism imposes no restrictions on as well as individually strategy-proof. use of voting for decisions on resource the scope of macro uncertainty. Any allocation is often seen as problematic probability distribution over cross-sec- In a large population, group strategy because voting does not take account tion distributions of types can be proofness and individual strategy of preference intensities. For example, generated by some specification of type proofness are no longer equivalent. particularly, in binary voting, a small random variables satisfying exchange- Because any one individual has no set of people who care deeply about ability. In contrast, the formalism does power to affect the aggregate outcome, the decision may be unable to influ- impose restrictions on macro-belief every anonymous social choice function ence the outcome of the vote even functions if these functions are to be is in fact individually strategy-proof, though none of the other people may derived from a common prior. The but not every anonymous social choice care very much at all. Our analysis necessary and sufficient conditions function is group strategy-proof. The shows that such inefficiencies may under which this is possible have a paper shows that, in a large population, have a deeper cause than merely the family resemblance to the correspond- as in a finite population, an anony- coarseness of the information con- ing conditions that Harsanyi (1967/68) mous social choice function is group veyed through voting: this coarseness gave for the existence of a common strategy-proof if and only if it can be itself may be implied by the require- prior in a game involving two agents. implemented by a version of Moulin’s ment of group strategy proofness. generalized median-voter mechanism. “Social Choice in Large Populations In contrast to other areas of economics with Single-Peaked Preferences” Whereas in Moulin (1980), group and political science, the paradigm of a (with Felix Bierbrauer), studies strate- strategy proofness only comes in as large population where each individual gy-proof social choice when there is a an afterthought, our arguments focus is too insignificant to affect the outcome large population of agents with sin- directly on what is needed to avoid for society has not been much used in gle-peaked preferences over a linearly collective manipulations by groups of social choice theory. However, in social ordered set of alternatives. The leading agents with (locally) similar interests. choice, as in private markets or in voting, example would be a problem of pub- The characterization relies on the linear the impact that an individual in a popu- lic-goods provision with quasi-linear ordering of the set of alternatives and lation of millions can have on the overall utility functions of the θ u(x) – k(x), on the fact that, when starting from outcome is so small that participants do where θ is an agent-specific prefer- any given alternative, participants with not give it much consideration. The loss ence parameter, x is the public-goods “higher” preference peaks all agree that in precision that results from studying a provision level, and k(x) is the per-cap- they would like to move “up”, and par- continuum model in which the impact of ita provision cost. If marginal utility is ticipants with “lower” preference peaks a single person on aggregate outcomes decreasing, and marginal per-capita all agree that they would like to move is literally zero is therefore negligible provision cost increasing, preferences “down”. We show that, if a manipulation and is outweighed by the gains in insight over provision levels are single-peaked. of social choice by either one of these that can be obtained through the greater two groups is to be avoided, the social simplicity of the continuum model. For models with finitely many agents choice function must not condition on with single-peaked preferences over the group’s composition, but only on its a linearly ordered set of alternatives, size. The size, however, can be found Applied Theory and Policy: an important paper by Moulin (Public out by having participants vote. If all Work on Financial Stability Choice 1980) had shown that an anon- participants have strict preferences ymous social choice function mapping over neighboring outcomes, it suffices and Banking Regulation vectors of preference parameters into to have people indicate for each out- outcomes can be implemented in come whether they want to move “up” “Germany and the Financial Crises dominant strategies (is strategy-proof) from that outcome or not. The chosen 2007–2017”, written for the annual mac- if and only if it can be implemented by a outcome is then “lowest” at the point ro-prudential conference at the Swed- generalized median-voter mechanism, at which the “up” votes fail to meet a ish Riksbank, attempts to answer the defined as a median-voter mecha- specified threshold.The threshold may question why Germany was so strongly

146 affected by the great financial crisis. The points to the difference between an working, deposit insurance is irrelevant. paper refers to the traditional three-pillar approach based on prohibitions (of abu- Moreover, there are reasons to believe banking system and to the intensifica- sive behavior, of mergers, etc.) and an that the difference that a common tion of competition in the 1990s. In the approach based on mandates (to hold deposit insurance scheme can make three-pillar system, the Landesbanken minimum reserves, to fund with suffi- is not large. Hence, political energy never had a viable business model to cient equity). The paper also discusses would be better devoted to reforming start with, and the “great” (private) banks the anti-competition policy tradition in legislation to make resolution viable. had a business model whose margins banking, the competition policy prob- disappeared in the 1990s. Attempts to lems associated with artificial barriers “Banks, Politics, and European Mon- deal with the situation by expanding to exit, due to government support, etary Union”, written for the 2019 ECB quantities exacerbated the margin and the competition policy problems Forum in Sintra, explains that, on the problem. Attempts to branch out into associated with too-big-to-fail policies one hand, Banking Union is essential other activities (global banking) suffered creating artificial incentives for mergers. for the survival of Monetary Union; from a lack of competence and a lack of on the other hand, Banking Union is proper incentives. The political system’s “Valuation Reports in the Context of not working because it lacks political failure to allow for sufficient consoli- Banking Resolution: What Are the legitimacy. The point is that banking dation through exit has caused crisis Challenges?”, written for the European is political, in more ways than one, responses to be inadequate until now. Parliament, discusses the difficulties and politics is national. The tension is involved in valuing the banks’ assets in illustrated by the way in which national “Bank Leverage, Welfare and Regula- resolution. The first part of the paper authorities have dealt with – or failed to tion” (with Anat Admati) provides a wel- provides a fundamental discussion of deal with – problem banks and by the fare theoretical analysis of bank funding what valuation is about, in particular reactions of electorates to such events. and regulation. The analysis focuses on how valuation is trivial if the market sys- the observation, formalized in Admati tem is complete (in the sense of Arrow et al., “The Leverage Ratchet Effect”, and Debreu) or at least there are viable Applied Theory and Policy: Journal of Finance 2018, that funding de- markets for securities replicating the Work on Money and European cisions of a person or an institution that assets that are to be valued, and then, already is indebted are always biased how valuation necessarily involves an Monetary Union in favor of additional debt, rather than element of arbitrariness if such markets equity. This incentive problem might do not exist. The paper also elaborates “Bargeld, Giralgeld, Vollgeld: Zur be contained by creditors’ imposing on the observation that asset values Diskussion um das Geldwesen nach covenants and discipline on debtors. depend on the strategies that are pur- der Finanzkrise”, written for a 2018 However, the enforcement of covenants sued, including the speed with which the Symposium of the Deutsche Bundes- and discipline requires coordination assets are to be disposed. The second bank, gives an overview over various among creditors. In this respect, banks part of the paper illustrates the problem discussions about money and monetary differ from non-financial borrowers. with the example of Banco Popular policy since the global financial crisis. Whereas debt funding of nonfinancial Español, where a lack of liquidity forced Most of these discussions involve flaws borrowers tends to be concentrated in the authorities to sell the bank to Banco in the understanding of basic mone- the hands of a few banks, the banks’ Santander, so that the question of tary theory. For example, much of the creditors are highly fragmented, and alternative strategies became moot. The discussion about ECB monetary policy coordination among them is infeasible. analysis leads to the conclusion that the and about the risks to which this policy Statutory equity requirements for banks valuation criteria given in the EU’s Bank exposes taxpayers is based on the view can therefore be seen as a commitment Recovery and Resolution Directive can- that central bank balance sheets are to device, which provides a substitute for not possibly be fulfilled, and attempts to be taken literally, so the central bank’s the missing ability to provide viable “repair” these criteria through judicial in- issue of notes and claims on notes commitments under laissez-faire. terpretation can lead to inconsistencies. must be interpreted as a form of debt. This view is invalid because in today’s “Competition Policy and Sector-Specif- “How Important Is a European Deposit pure paper money system, the issue ic Regulation in the Financial Sector”, Insurance Scheme?”, written for a con- of money by a central bank imposes written for an OECD Workshop, discuss- ference at the Frankfurt Institute for Law no obligation on the central bank. In es the respective roles of the two forms and Finance, questions the often-made accounting terms: The fair value of of statutory intervention mentioned in claim that completion of banking union liabilities incurred is zero. At the same the title. Drawing on earlier work on should provide for a common deposit time, discussions about the funding of competition and sector-specific regu- insurance system with high priority. As commercial banks are often based on lation in network industries, the paper long as resolution mechanisms are not the view that bank deposits are not a

147 D. Research Portraits

form of debt because they are “money”, value”) must be derived from the legal Hellwig, M. F., and Schnabel, I. (2019). Verur- which commercial banks can create norms; and (iv) a misreading of the legal sachen Target-Salden Risiken für die Steuer- zahler?, Wirtschaftsdienst, 99(8), 553–561. at will, by granting additional loans. norms, in particular with respect to the This view is invalid because deposits notion of “interest on TARGET balances”, Hellwig, M. F., and Schnabel, I. (2019). Target-Salden, Leistungsbilanzsalden, which is purely an accounting device, are claims for the surrender of central Geldschöpfung, Banken und Kapitalmärkte, bank money (or claims thereon), which without any impact on the profit shares Wirtschaftsdienst, 9, 632–640. do impose obligations on commercial of national central banks. The paper also Hellwig, M. F. (2018). Was wäre, wenn banks. The fair value of these liabilities criticizes the focus of German mone- der Lehman-Konkurs heute stattfände?, is positive, and, in contrast to central tary policy discussion on fiscal issues, Wirtschaftsdienst, 98 (8), 539–543. banks, commercial banks can become as opposed to issues related to the Hellwig, M. F. (2018). Bargeld, Giralgeld, Voll- insolvent for being unable to meet them. central bank’s mandates. The article has geld: Zur Diskussion um das Geldwesen nach The views underlying the positions that provoked replies from Hans-Werner Sinn der Finanzkrise. Zeitschrift für das gesamte central bank money is debt of the cen- and others, which are again flawed. I am Kreditwesen, 8, 37–41. tral bank and commercial-bank “money” in the process of preparing a response. Hellwig, M. F. (2018). Target-Falle oder is not debt of the commercial bank are Empörungsfalle? Zur deutschen Diskus- sion über die Europäische Währungsunion. both flawed; they seem mutually incon- The article in Perspektiven der Wirt- Perspektiven der Wirtschaftspolitik, 19(4), sistent, but that does not prevent some schaftspolitik served as a basis for a 345–382. people from holding them at the same joint statement by Isabel Schnabel and Hellwig, M. (2018). HSH Nordbank: Verkauf time. I am considering preparation of an me for the Finance Committee of the – ein Schlussstrich? Wirtschaftsdienst, 98, English version, which would also have Bundestag, which unfortunately I could 224–224. to encompass the more recent discus- not attend, so Isabel presented our view. Hellwig, M. F. (2017). Deutschland und die sion about “modern monetary theory”. This statement was subsequently pub- Finanzkrise(n), Wirtschaftsdienst, 97(9), lished in two instalments in Wirtschafts- 606–607. “Target-Falle oder Empörungsfalle? dienst. Hellwig, M. F. (2017). Wachstumsschwäche, Zur deutschen Diskussion um die Bankenmalaise und Bankenregulierung, Europäische Währungsunion” provides Wirtschaftsdienst, 97 (Sonderheft), 43–48. a systemic account of the economics Publications (since 2017) Hellwig, M. F. (2017). Man sollte mehr Mut of the Eurosystems TARGET accounts. haben, Banken in die Insolvenz gehen zu lassen: Ein Gespräch über Leistungsbilanzen, Following an article in the Frankfurter Articles in Peer-Reviewed Journals staatliche Investitionen, Schulden, Geldpolitik Allgemeine Sonntagszeitung, in which Hellwig, M. F. (2020). Twelve Years after the und Bankenregulierung, Perspektiven der I warned of “TARGET hysteria”, the Financial Crisis – Too-big-to-fail is still with Wirtschaftspolitik, 18, 226–244. us. Comments on the Financial Stability editor of Perspektiven der Wirtschafts- Hellwig, M.F . (2017). HSH Nordbank: Board’s Consultation Report ‘Evaluation of politik, the policy journal of the Verein Verantwortlichkeit in der Demokratie (HSH the Effects of Too-big-to-fail reforms’. MPI Nordbank: Accountability in a Democracy), für Socialpolitik (German Economic Discussion Paper 2020/24. To appear in Wirtschaftsdienst, 97(1), 4–5. Association) had asked me to lay out Journal of Financial Regulation. my arguments in detail. Based on a Hellwig, M. F. (2020). Property Taxes and thorough study of the legal norms, Dynamic Inefficiency: A Correction of a “Cor- Chapters in Edited Volumes the article points out that much of the rection”. Economics Letters, 197, 109603. Hellwig, M. F. (2020). How Important is a German debate on the subject is due Admati, A. R., DeMarzo, P. M., Hellwig, M. European Deposit Insurance Scheme?, in: to several failures: (i) a failure to take F. and Pfleiderer, P. (2018). The Leverage A. Dombret and P. S. Kenadjian (eds.) EDIS, account of the fact that, as an eco- Ratchet Effect. Journal of Finance, LXXIII(1), NPLs, Sovereign Debt, and Safe Assets, Insti- nomic operator, the Bundesbank is not 145–198. tute for Law and Finance Series Volume 23, De Gruyter, Berlin/Boston, 7–19. acting independently, but as part of the Gizatulina, A. and Hellwig, M. F. (2017). The Eurosystem, with business outcomes Generic Possibility of Full Surplus Extraction Hellwig, M. F. (2019). Banks, Politics, and in Models With Large Type Spaces, Journal of European Monetary Union, in: European Fo- shared among the participating central Economic Theory, 170, 385–416. rum on Central Banking 2019: Twenty Years banks; (ii) a failure to take account of European Economic and Monetary Union, Hellwig, M. F. (2017). Finanzstabilität, Trans- of the fact that the balance sheets of Conference Proceedings, 250–261. parenz und Verantwortlichkeit: Stellung- national central banks in the Eurosys- nahme für das Bundesverfassungsgericht, Admati, A. R. and Hellwig, M. F. (2019). tem commingle positions from joint Credit and Capital Markets/Kredit und Kapital Bank Leverage, Welfare, and Regulation, in: activities and positions from individual 50(4), 421–454. D.W. Arner, E. Avgouleas, D. Busch and A.L. Schwarcz, Systemic Risk in the Financial activities in ways that would be illegal Sector: Ten Years after the Great Crash, Cen- for private corporations; (iii) a failure to Journal Articles (not peer-reviewed) tre for International Governance Innovation, take account of the fact that TARGET Waterloo, Ont., 217–233. Hellwig, M. F. (2019). In memoriam Felix positions belong to a system of internal Höffler (1970–2019). Zeitschrift für Hellwig, M. F. (2018). Bargeld, Giralgeld, Voll- accounts whose economic content (“fair Wirtschaftspolitik, 68(1), 1–5. geld: Zur Diskussion um das Geldwesen nach

148 der Finanzkrise, in: Deutsche Bundesbank: 4. Hellwig, M. F. (2019). Können wir uns die Scientific Advisory Board at the Federal Bargeldsymposium 2018, Frankfurt, 94–147. Deutsche Bank leisten?, Frankfurter Allge- Ministry for Economic Affairs and Energy meine Zeitung, 15 April 2019. (2020). Letter to Federal Minister Altmaier on the Challenges Caused by the Corona Crisis, Hellwig, M. F. (2018). Die Rückkehr zur Nor- Revise & Resubmit Berlin, April 2020. malität hat noch einen langen Weg vor sich, Hellwig, M. F. (2019/2020). Incomplete-Infor TA NEA, 15 December 2018. Hellwig, M. F. (2020). Stellungnahme für den mation Games in Large Populations with Finanzausschuss des Deutschen Bundestag- Hellwig, M. F. (2018). Die Steuerzahler bleiben Anonymity. MPI Discussion Papers 2019/14, es zum Antrag der Fraktion der FDP: “Basel wohl auf 70 Milliarden Euro sitzen, taz.die 2020/20, R & R: Theoretical Economics. III Finalisierung – Kreditversorgung Deutsch- tageszeitung, 14 September 2018. lands erhalten” [Statement for the Finance Hellwig, M. F. (2018). Wider die deutsche Committee of the German Bundestag on a Working Papers Target-Hysterie, Frankfurter Allgemeine Sonn- Motion by the FDP Parliamentary Group: “Ba- tagszeitung, 29 July 2018. sel III Finalization – Maintain Credit Supply Bierbrauer, F. J. and Hellwig, M. F. (2020). for Germany”], Berlin, 10 March 2020. Social Choice in Large Populations with Hellwig, M. F. (2018). Einlagen würden für Single-Peaked Preferences: Group Strategy Kunden teurer, Der Tagesspiegel, 10 June Hellwig, M. F. and Schnabel, I. (2019). Proofness and Voting, mimeo, Cologne/Bonn, 2018. Stellungnahme anlässlich der öffentlichen 2020. Anhörung des Finanzausschusses des Admati, A. and Hellwig, M. F. (2018). Risks Deutschen Bundestages zu den Anträgen Hellwig, M. F. (2020). Dynamic Inefficiency Grow as Reform Resolve Disappears. Global der Fraktion der FDP und AfD zum Thema and Fiscal Interventions in an Economy with Public Investor, 78–78. “Target” [Statement on the Occasion of the Land and Transaction Costs. MPI Discussion Public Hearing of the Finance Committee Paper 2020/7. Hellwig, M. F. (2018). Interview: Immer noch viele faule Kredite, Badische Zeitung of the German Bundestag on the Motions Admati, A. R. and Hellwig, M. F. (2019). Freiburg/Südlicher Breisgau, 11 April 2018 . of the FDP and AFD Parliamentary Groups The Parade of the Bankers’ New Clothes on the Topic “Target”] (BT-Drs. 19/6416 und Continues: 34 Flawed Claims Debunked, Rock Hellwig, M. F. (2018). Beispiel für Populismus, 19/9232), Berlin, 5 June 2019 (published Center for Corporate Governance at Stanford Frankfurter Allgemeine Zeitung, 8 March 2018. in two parts in Wirtschaftsdienst, 99(8), 553–561 and Wirtschaftsdienst, 9, 632–640. University Working Paper No. 143, Stanford Hellwig, M. F. (2018). Viel Vages zu Europa, University Graduate School of Business Frankfurter Allgemeine Sonntagszeitung, 11 Hellwig, M. F. (2018). Valuation Reports in the Research Paper No. 15-58, revised, August February 2018. Context of Banking Resolution: What Are the 2019. Challenges? Report for the ECON Committee Gersbach, H. and Hellwig, M. F. (2017). of the European Parliament, Brussels, June Hellwig, M. F. (2018). Germany and the Finan- Bargeld abschaffen macht wenig Sinn, Die 2018 (also published as MPI Discussion cial Crises 2007–2017, Case Study on a Past Volkswirtschaft 2017 (8–9), 6–9. Crisis: The Case of Germany, Paper presented Paper 2018/6). Hellwig, M. F. (09.08.2017). Das kann jeder- at the fourth Annual Macroprudential Confer- Hellwig, M. F. (2018). Competition Policy and zeit wiederkommen, Die Tageszeitung (taz). ence of the Swedish Riksbank, June 2018. Sector-Specific Regulation in the Financial Hellwig, M. F. (2018). Competition Policy and Hellwig, M. F. (30.08.2017). Es gab viel Sector. Paper prepared for OECD Workshop Sector-Specific Regulation in the Financial Aktivismus, Handelsblatt, Finanzen & Börsen, on Competition Policy and Financial Regula- Sector. MPI Discussion Paper 2018/7. 167, 29. tion, Paris, December 2017 (also published as MPI Discussion Paper 2018/7). Hellwig, M. F. (2018). Valuation Reports in the Hellwig, M. F. (2017). Duitsland moet de Context of Banking Resolution: What Are the Kritiek van andere Landen serieuzer nemen!, Scientific Advisory Board at the Federal Challenges? MPI Discussion Paper 2018/6. NRC Handelsblad, 9 June 2017. Ministry for Economic Affairs and Technology (2017). Letter to Federal Minister Zypries on Hellwig, M. F. (2017). Precautionary Recapi- Hellwig, M. F. (2017). Bitte nicht Groß- the Discussion About a Further Deepening of talizations: Time for a Review, MPI Discussion deutsch!, Frankfurter Allgemeine Sonntagszei- the European Union, Berlin, December 2017. Paper 2017/14. tung, 14 May 2017. Hellwig, M. F. (2017). Precautionary Recapi- Hellwig, M. F. (2017). Carving Out Legacy Hellwig, M. F. (2017). Wenn die Zinsen talizations: Time for a Review, Report for the Assets: A Successful Tool for Bank Restruc- steigen, wird es für manchen gefährlich, ECON Committee of the European Parlia- turing?, MPI Discussion Paper 2017/3. AnlegerPlus, May 2017. ment, Brussels, July 2017 (also published as MPI Discussion Paper 2017/14).

Newspaper Articles and Interviews Policy Reports Gutachten des Wissenschaftlichen Beirats beim Bundesministerium für Wirtschaft und Scientific Advisory Board at the Federal Min- Bofinger, P., Hellwig, M. F., Hüther, M., Energie, Zur Diskussion um Bargeld und die istry for Economic Affairs and Energy (2020). Schnitzer, M., Schularick and Wolff, G. (2020). Null-Zins-Politik der Zentralbank (Report of Öffentliche Infrastruktur in Deutschland: Gefahr für die Unabhängigkeit der Notenbank, the Academic Advisory Committee of the Probleme und Reformbedarf [Public Infra- Frankfurter Allgemeine Zeitung, 29 May 2020 Ministry for the Economy and for Energy Con- structure in Germany: Problems and Need for (English version see: https://www.guntram- cerning the Discussion about Cash and about Reform], Berlin, July 2020. wolff.net/blog/the-independence-of-the- the Zero-Interest-Rate Policy of the Central central-bank-at-risk/, published in Negocios, Hellwig, M. F. (2020). Comments on the Bank), February 2017. Politico, Kathimerini and La Repubblica) Financial Stability Board’s Consultation Hellwig, M. F. (2017). Carving Out Legacy Report of June 2020, “Evaluation of too-big- Hellwig, M. F. (2020). Abschied von der heilen Assets: A Successful Tool for Bank Restruc- to-fail reforms”, September 2020. Welt: Die Grenzen der Eigenverantwortung, turing?, Report for the ECON Committee of Frankfurter Allgemeine Zeitung, 15 May 2020. the European Parliament, Brussels, March 2017 (also published as MPI Discussion Paper 2017/3).

149 D. Research Portraits

Lectures and Presentations Ideologie oder Wissenschaft? Was kann “Regulatory Capture” – Welche Effekte orthodoxe Wirtschaftstheorie leisten? hat der Einfluss der Großindustrie auf die (since 2017) Ringvorlesung, University of Cologne Gesetzgebung und die Behörden und was 26 April 2017 lässt sich verbessern? 2017 Bundesarbeitsgemeinschaft Wirtschaft & Europa in der Krise Finanzen: Bündnis 90/Die Grünen, Berlin Globalisierung, “Shareholder Value“ und Stiftung der Deutschen Wirtschaft, Frank- 7 October 2017 Unternehmenslenkung furt/M. VDE Köln e.V. and VDI Kölner Bezirksverein 13 May 2017 Bankenregulierung und Bankenaufsicht e.V., Bonn nach der Krise: Sind wir jetzt sicher? Warum 18 January 2017 A Treasury for the Banking Union? nicht? Banco de España, Madrid Rotary Club Bonn-Siebengebirge, Bonn Pourquoi avons-nous besoin des sciences 18 May 2017 20 November 2017 économiques pour comprendre la réalité? (Why Do We Need Economics to Understand Wissenschaft im Banne von “Exzellenz” und Systemische Risiken als Herausforderung the Real World?) “Sichtbarkeit”: Gründe, Methoden, Kosten, für die Regulierung des Finanzsektors Académie des Sciences Morales et Poli- Alternativen Deutsche Bundesbank, Frankfurt am Main tiques, Paris Symposium der Geistes-, Sozial- und Human- 23 November 2017 27 February 2017 wissenschaftlichen Sektion der Max-Planck-Gesellschaft, Weimar Competition Policy and Sector-Specific The Future of Banking in Europe: Regulation, 21 June 2017 Regulation in the Financial Sector Supervision, and the Changing Competitive OECD Workshop on Competition and Regula- Landscape Are Banks Still Special? tion, Paris Delphi Economic Forum II, Delphi 2017 Law and Banking/Finance Conference, 4 December 2017 4 March 2017 Bad Homburg 23 June 2017 Europa in der Krise: Woran hapert es? Acht Jahre nach Lehman Brothers: Wie steht ZinsFORUM, Institut für Management GmbH, es um die Finanzstabilität? Liquidity Provision and Equity Funding of Frankfurt/M. Rotary Club Kreuzberg, Bonn Banks 6 December 2017 6 March 2017 Society for the Advancement of Economic Theory (SAET), Faro Beitrag zur Paneldiskussion beim Sym Carveouts of Legacy Assets – a Tool for 25 June 2017 posium “Integrierte Infrastruktur- und Successful Bank Restructuring? Finanzplanung in Zeiten urbaner Transfor- MPI Collective Goods, Bonn Systemrisiko im Finanzsektor mation” 20 March 2017 Austrian National Bank, Vienna Veranstalter: Stadt Köln, Stadtwerke Köln, 4 July 2017 Deutsches Institut für Urbanistik sowie das Bankenregulierung und Bankenaufsicht Finanzwissenschaftliche Forschungsinstitut nach der Krise: Sind wir jetzt sicher? Warum Systemic Risk, Macro Shocks, and an der Universität zu Köln nicht? Macro-prudential Policy 14 December 2017 Rotary Club Köln-Kastell, Cologne Leibniz-Institut für Wirtschaftsforschung 29 March 2017 Halle (IWH), Halle/Saale 2018 29 August 2017 The Too-Big-To-Fail Problem Remains Lecture, “Finance, State, and Society in the Unsolved Geldtheorie, Bargeld und Giralgeld Financial Crisis”, and Panel Contribution Inter-Academy Symposium Law and Eco- Jahrestagung des Vereins für Socialpolitik, Workshop “Defining Global, European, and nomics of the German National Academy of Vienna Local Economies”, at Socires International Sciences Leopoldina and the Israel Academy 4 September 2017 Conference on “The Finance – State – of Sciences and Humanities, Berlin Society Triangle in Europe”, Amsterdam 3 April 2017 “Too big to fail” bleibt ein Problem 23 January 23, 2018 European Center for Financial Services, Uni- Bargeld versity Duisburg-Essen, Duisburg Bargeld, Giralgeld, Vollgeld Bundesministerium für Wirtschaft und 7 September 2017 4. Bargeldsymposium (4th Cash Symposium) Energie, Berlin 2018, Deutsche Bundesbank, Frankfurt/M. 5 April 2017 Bank Resolution in Europe – Bail In or Bail Out 14 February 2018 Bank of America Merrill Lynch European Cred- Alternative Truths and Fake News: The it Conference 2017, London Monetary Policy and Public Finance Example of Banking Regulation 13 September 2017 ZEW Public Finance Conference, Mannheim Ambrosetti‘s Finance Workshop, 24 April 2018 The European House, Cernobbio Revisiting Central Bank Governance 7 April 2017 Bruegel-Graduate School of Economics, Warum ist das Finanzsystem immer noch Brussels nicht sicher genug? The Return of Jurisdictional Borders in the 2 October 2017 Geldgipfel (Money Summit) 2018: Von der Financial System Finanzwirtschaft zur Realwirtschaft – 10 Public Finance Dialogue, Centre for European Nichts gelernt? Regulierung internationaler Jahre nach Lehman Brothers, Universität Economic Research, Berlin Finanzmärkte Witten-Herdecke, Witten 25 April 2017 Bund Katholischer Unternehmer e.V., Munich 28 April 2018 6 October 2017

150 Die Unabhängigkeit der Zentralbank Die Überwindung von Babel: Chancen und Staaten und Banken in der Währungsunion Universität Bonn Hindernisse im interdisziplinären Diskurs IMK-Forum, Institut für Makroökonomie und 5 May 2018 zwischen Rechts- und Wirtschaftswissen- Konjunkturforschung (IMK), Berlin schaften 27 March 2019 Systemic Risk, Macro Shocks, and Banking Goethe University Frankfurt/Main, Founda- Regulation tions of Law and Finance, Frankfurt/Main Systemic Risk, Macro Shocks, and Macro- 3rd Annual European Central Bank Macro- 1 November 2018 prudential Policy prudential Policy and Research Conference, OeNB Macroprudential Policy Conference Frankfurt/Main Lender of Last Resort: Who Should Do What? 2019, Austrian National Bank, Vienna, Austria 17 May 2018 Conference of the European Central Bank, Na- 9 May 2019 tional Bank of Belgium, the Toulouse School Des Bankers neue Kleider of Economics and the Solvay Brussels School Discussion of Bank Capital Redux: Solvency, University of Salzburg of Economics and Management at National Liquidity, and Crisis 14 June 2018 Bank of Belgium, Brussels by Moritz Schularick, Bundesbank Spring 6 November 2018 Conference 2019, Deutsche Bundesbank, Germany and the Financial Crises 2007–2017 Frankfurt/Main Annual Macroprudential Conference, Sveriges Das politische Element in Wirtschaftstheorie 15 May 2019 Riksbank, De Nederlandsche Bank and Deut- und Politikberatung sche Bundesbank, Stockholm Friedrich-August-von-Hayek-Lecture Nationale Champions, Wettbewerbspolitik 16 June 2018 University of Freiburg und Industriepolitik 12 November 2018 Bundeskanzleramt, Berlin Regulatory Convergence or Divergence 23 May 2019 The Transformation of Global Governance Why Have We Made So Little Progress in Project – The Governance of International Bank Resolution Since the Financial Crisis? Social Choice in Large Populations with Banking: Regulating for Crises, Past and Reserve Bank of New Zealand, Wellington Single-Peaked Preferences, with an Applica- Future, European University Institute/Bocconi 4 December 2018 tion to Public-Good Provision University, Milan University of Bielefeld 12 September 2018 Regulatory Reform Since the Financial Crisis 28 May 2019 – Where Do We Stand? Liquidity Provision and Equity Funding of Victoria University of Wellington, Wellington How Important Is a European Deposit Banks 5 December 2018 Insurance Scheme? New Economic School, Moscow Contribution to Panel: The Arguments For 8 October 2018 Competition Policy and Sector-Specific and Against EDIS Regulation in the Financial Sector Institute for Law and Finance Conference on Bank Regulation. Ten Years After Financial New Zealand Treasury, Wellington EDIS, NPLs, Sovereign Debt and Safe Assets, Crisis 7 December 2018 University of Frankfurt, Frankfurt/Main New Economic School, Moscow 14 June 2019 8 October 2018 Liquidity Provision and Equity Funding by Banks Banks, Politics, and European Monetary Deutschland und die Finanzkrisen des ver- Victoria University of Wellington, Wellington Union, Contribution to Panel on “The future gangenen Jahrzehnts 11 December 2018 of EMU” University of Hohenheim, Stuttgart ECB Forum on Central Banking, Sintra, 16 October 2018 2019 Portugal 19 June 2019 Cross-Border Banking Issues in a Monetary Target-Falle oder Empörungsfalle? Zur Union deutschen Diskussion um die Europäische Target-Falle oder Empörungsfalle? Zur 4th Policy Research Conference of the Währungsunion deutschen Diskussion um die Europäische European Central Banking Network (ECBN) University of Osnabrück Währungsunion on “Cross-Border Aspects of Macroprudential 15 January 2019 University of Rostock Policy”, Central Bank of Slovenia, Ljubljana 24 June 2019 18 October 2018 Europa in der Krise – Währungsunion, Ban- kenunion, Fiskalunion Banks, Governments, and the ECB in the Liquidity Provision and Equity Funding of University of Münster – Faculty of Economic “Euro Crisis” Banks Sciences National University of Singapore, Risk German Institute for Economic Research 17 January 2019 Management Institute, Singapore (DIW Berlin), BERA-Soirée (Berlin Economics 23 July 2019 Research Associates) Coalition-Proof Social Choice in Large Popu- 23 October 2018 lations with Single-Peaked Preferences Systemic Risk, Macro Shocks, and Macro- Workshop on Centralised vs. Decentralised Prudential Policies Systemic Risk, Macro Shocks, and Forms of Social Organization and Public 13th Annual Risk Management Conference, Macro-Prudential Policies Good Provision, University of Bath, UK National University of Singapore Macroeconomic Policy Institute, Hans 31 January 2019 25 July 2019 Boeckler-Stiftung, Berlin 25 October 2018 Regulatory Reforms after the Crisis: Has the Interne Modelle – Risikomessung oder Financial System Become Safe? Why Not? Risikofaktor? (panel participant) Icelandic Supervisory Authority, Reykjavik, FMA Aufsichtskonferenz 2019, Österrei Iceland chische Finanzmarktaufsicht (FMA), Vienna, 5 March 2019 Austria 3 October 2019

151 D. Research Portraits

Governments, Banks, and Monetary Union Member, Expert Panel of the European Financial Stability Conference 2019, Financial Parliament on Banking Union – Resolution, Risk and Stability gGmbH, Berlin 2016-2019 28 October 2019

Staaten und Banken in der Währungsunion Professional Activities Volkshochschule Erding 5 November 2019 Scholarly Organizations Post-Crisis Regulation: Old and New Challenges to Financial Stability Fellow of the Econometric Society, since Finance Watch Conference 2019, Brussels, 1981 Belgium 19 November 2019 Fellow (Past President) of the European Economic Association, since 1988 2020 Honorary Member, American Economic Asso- ciation, since 1995 Reformen und Finanzstabilität nach der Krise Ringvorlesung “Lektion gelernt? Staats‑ Member, Academia Europaea, London, since schuldenkrisen und Finanzmarktstabilität”, 1990 University Cologne 27 January 2020 Member, Berlin-Brandenburg Academy of Sciences, since 1994 Contribution to Panel on “Central Banks’ Objectives” at NIESR-Rebuilding Macro- Foreign Honorary Member, American Acade- economics Conference on THE FUTURE OF my of Arts and Sciences, since 2002 CENTRAL BANKING National Institute of Economic and Social Inaugural Fellow, European Corporate Gover- Research, London, UK nance Institute, since 2002 20 March 2020 (virtual) Economic Theory Fellow of the Society Contribution to Panel on “Central Banks to for the Advancement of Economic Theory the Rescue? Is This the Time for Helicopter (SAET), since 2013 Money?” at Forum New Economy Bürgerbewegung Finanzwende e.V., Berlin Distinguished Fellow, Centre for Economic 22 April (virtual) Policy Research (CEPR) since 2019 Membre correspondant, Académie des Regulatory Reforms after the Financial sciences morales et politiques, since 2018 Crisis: Has the Financial System Become Safe? Why Not? Fellow, Financial Theory Group, since 2018 University of Naples Federico II, Naples, Italy 6 July 2020 (virtual) Editorial Activities Has Regulatory Reform since 2008 Made the Financial System Safe? Why Not? Member, Advisory Board, Journal of the Euro- European Central Bank, Frankfurt/M. pean Economic Association, since 2003 15 September 2020 (virtual) Advisory Committees etc. of Scholarly Regulatory Reforms after the Financial Institutions Crisis: Has the Financial System Become Safe? Why Not? Academic Partner, New Paradigm Plattform, University of Michigan, USA Berlin, since 2019 25 September 2020 (virtual) Member, Scientific Advisory Committee, Wissenschaftsrat Cologne, Evaluation of LOEWE-Zentrum für Finanzmarktforschung, Dissertations Frankfurt/Main, Deutsches Institut für July 2019 Wirtschaftsforschung (DIW), Berlin and Leib- Robert Scherf, University of Bonn niz-Institut für Wirtschaftsforschung Halle Essays in Public Finance e.V. (IWH), Frankfurt/Main, May 2018

Member, Scientific Advisory Committee, Deutsche Forschungsgesellschaft, Evaluation Public Service of Research Group „Schaffung von Welt durch Member, Scientific Advisory Council, Federal Schlüsselindikatoren: Genese, Verwendung, Ministry for Economic Affairs and Energy, Folgen und Alternativen“, Halle, April 2018 Berlin, since 1995

152 Yoan Hermstrüwer

Summary Report anism, information about individually optimal application strategies, and com- Most of my current research is aimed at bined information under GS and BOS. I reconciling the requirements of market find that strategic and full information design and public law. It does so by increase truth-telling and stability under bringing together mechanism design, GS. Under BOS, however, the adoption of experimental economics, empirical legal equilibrium strategies remains unaffect- studies, and various areas of public law. ed. Contrary to prevailing assumptions In most of my projects, I build on meth- in matching theory, I show that BOS ods used in the experimental law and improves perceived fairness. These economics framework. Throughout my results underscore the importance of work, I draw on insights from behavioral procedural information and suggest economics, models of bounded rational- that eliminating justified envy may not ity, and (behavioral) market design more be a sufficient condition of fairness. generally. This is what I call “behavioral Contact law and market design” – an approach The study by Cerrone, Hermstrüwer, and that I build on both in my habilitation Robalo (R&R at Games and Economic [email protected] thesis (from a legal angle) and in a Behavior) is motivated by the obser- series of projects in my economics dis- vation that several sanctions com- https://www.coll.mpg.de/ sertation (from an experimental angle). monly used to fight collusion in public yoan-hermstruewer procurement procedures may strike In Hermstrüwer (2019c), I start from the back against their designers. One of observation that many student admis- these sanctions is debarment, i.e., the sions procedures do not provide any exclusion of colluding bidders. On a safeguards against strategic manipula- Beckerian view, debarments should de- tion. Under the immediate acceptance ter collusion. However, by reducing the algorithm, for example, a common market size, debarments might well de- procedure often referred to as the Bos- crease the level of competition and thus ton mechanism (BOS), it is not safe for facilitate collusion. In a lab experiment, students to reveal their preferences for we explore the potentially countervailing schools truthfully. As the German Con- effects of debarments on bidder collu- stitutional Court notes, such a procedure sion in procurement auctions. We find is hardly compatible with equal protec- that debarments and their most com- tion rights, as it provides a systematic mon alternative, fines, reduce collusion advantage to sophisticated applicants. and bids relative to a market with no To prevent the risk of manipulation and sanction. The deterrent effect of debar- to achieve stable matchings, several ments increases in their length. Howev- US school districts have introduced er, shorter debarments reduce efficiency strategy-proof admissions procedures and increase the bids of non-debarred based on the deferred acceptance bidders. This suggests that debarments algorithm, also known as the Gale-Shap- that are too lenient may trigger tacit ley mechanism (GS). In addition, some collusion among the bidders who remain school districts provide procedural in the market, thereby facilitating the information to applicants, telling them very behavior they are intended to deter. not to strategize. The German university admissions clearinghouse takes a very In Hermstrüwer and Dickert (2017), we different approach. Rather than replac- start from the assumption that gov- ing BOS with strategy-proof alternatives, ernment surveillance may increase the the clearinghouse tells students how to general level of conformity and thus strategize in order to obtain a preferred generate a “chilling effect”. Combining seat. In a lab experiment, I compare the elements of a lab and a field experiment, impact of information about the mech- we show that salient and incentivized

153 D. Research Portraits

consent options are sufficient to trigger impact of the GDPR on privacy laws in In a series of separate projects in this behavioral effect. Salient ex-ante eight jurisdictions, including Germany the making, I extend this approach to consent options may lure people into and the US. Our sample consists of other areas of public law, including giving up their privacy and increase more than 700 privacy policies that we the allocation of living donor organs their compliance with social norms, collected on a weekly basis since 2017, (transplantation law), the distribution even when the only immediate risk of yielding roughly 100,000 observations. of refugees (refugee law), and the sharing information is publicity on a We exploit the entry into force of the adoption of children (public adoption digital platform. A right to be forgot- GDPR as an exogenous shock and find law). These projects will assemble ten (Art. 17 GDPR), however, seems to that the spillover effects of the GDPR on further pieces in the puzzle of be- reduce neither privacy valuations nor U.S. law are much weaker than propo- havioral law and market design. chilling effects. In spite of low dele- nents of the “Brussels effect” suggest. tion costs, people tend to stick with a retention default. The study suggests Sometimes, using data from an incen- Publications (since 2017) that consent architectures may play tivized lab experiment or from a natural out on social conformity rather than experiment will not do, especially to the Articles in Peer-Reviewed Journals on consent choices and privacy val- extent that a behavioral effect hinges Hermstrüwer Y. (2019a). Democratic Block- uations. Salient notice and consent on context. In Hermstrüwer and Lan- chain Design. Journal of Institutional and Theoretical Economics (JITE), 175(1), 163–177. options may not just empower users genbach (work in progress), we run a to make an informed consent decision; series of vignette studies on MTurk to Hermstrüwer Y., Dickert S. (2017). Sharing is they may well trigger chilling effects. investigate how procedural fairness per- Daring: An Experiment on Consent Options, Chilling Effects and a Salient Privacy Nudge. ceptions vary with the degree to which International Review of Law and Economics The upshot of these projects is that an administrative decision is based (IRLE), 51, 38–49. many of the behavioral assumptions on machine-learning predictions. Our Hermstrüwer Y. (2017). Contracting Around underlying market design and public vignettes cover three different adminis- Privacy: The (Behavioral) Law and Economics law are based either on uncorroborated trative decision-making contexts: predic- of Consent and Big Data. Journal of Intellectu- intuitions or excessively rational models tive policing, predictive schooling, and al Property, Information Technology and Elec- tronic Commerce Law (JIPITEC), 8(1), 9–26. of human behavior. Without empirical or the distribution of refugees based on experimental support, market designers predicted employment. Our pilot study and lawyers run the risk of implementing suggests that fairness perceptions are Journal Journal Articles (not peer-reviewed) rules that foster the very effects they higher in all contexts when decisions are Hermstrüwer, Y. (forthcoming). The Limits of intend to curb. This holds particularly entirely based on human predictions. Blockchain Democracy. New York University true for complex matching algorithms. Journal of Law & Liberty (NYU JLL), 14. One possibility to facilitate choices Some of these projects fall within the Hermstrüwer, Y. (forthcoming). Fairness- under complexity is to exploit the power broader research area of my habili- prinzipien der algorithmischen Verwaltung: of nudging. In Cerrone, Hermstrüwer, tation project (Hermstrüwer, work in Diskriminierungsprävention beim staatlichen Einsatz von Machine Learning, Archiv des and Kesten (work in progress), for progress). My habilitation thesis is not öffentlichen Rechts (AöR), 145. example, we investigate the effects of just intended to discuss the frictions be- Hermstrüwer Y. (2018). Anreize und Nudging a mechanism under which students tween the design of matching markets zur Patientencompliance: Staatliche Entschei- can consent to a priority waiver in order and public law. It is, above all, supposed dungen über Heilung und Ressourcenvertei- to mitigate the inefficiency associated to shed light on neglected problems of lung. GesundheitsRecht (GesR), 21–27. with the stable matching generated public admissions procedures and to by the deferred acceptance algorithm. reconstruct administrative and constitu- Books To test the effect on consent rates tional doctrines in light of recent theoret- and preferences for schools, we vary ical and empirical research on matching Hermstrüwer, Y., Lüdemann, J. (forthcoming). Der Schutz der Meinungsbildung im digitalen the default design of this option and markets. To achieve this epistemic goal, Zeitalter: Instrumente und Instrumentenver- implement a version of the algorithm I cover and compare three areas of gleich, 205 p., Mohr Siebeck: Tübingen. with coerced efficiency adjustments. public education law: the assignment of children to daycare institutions, school Book Chapters In a series of other projects, I extend my choice, and the university admissions methodological toolbox to account for procedure. The comparison across Hermstrüwer, Y. (forthcoming). Wahrheit als Regelungsproblem -- Instrumente zum specific legal and institutional features different areas of public education law Umgang mit Fake News, in: Hermstrüwer, that cannot possibly be captured in the illustrates relevant differences both Y. / Lüdemann, J. (eds.), Der Schutz der lab. Frankenreiter and Hermstrüwer on a doctrinal view and in terms of the Meinungsbildung im digitalen Zeitalter: (work in progress), for example, is an specific concerns of distributive justice Instrumente und Instrumentenvergleich, Mohr Siebeck: Tübingen, 149-188. observational study that explores the underlying the respective legal rules.

154 Hermstrüwer Y. (forthcoming). Blockchain Frankenreiter, J., Hermstrüwer, Y., Privacy’s 2018 and Public Administration, in: Pollicino, Great Shock: The GDPR and Privacy Polices Oreste / De Gregorio, Giovanni (Eds.), Block- around the Globe. The Foundations of Social Bot Regulation chain and Public Law: Global Challenges in GIF Young Scientists’ Meeting, Legal Rules the Era of Decentralisation, Edward Elgar: Hermstrüwer, Y., Rawlsian Matching. for the Digital Economy, Potsdam Cheltenham. Hermstrüwer, Y., Why Law and Market February 2018 Design? Hermstrüwer, Y., Lüdemann, J. (forthcom- Wahrheit als Regelungsproblem – Instru- ing). Internationales Kommunikationsrecht, Hermstrüwer, Y., Children in the Queue: The mente zum Umgang mit Fake News in: Tietje, Christian / Nowrot, Karsten (Eds.), Assignment Procedure for Daycare Pro- Workshop Meinungsbildung im digitalen Internationales Wirtschaftsrecht, 3rd ed., De grams. Zeitalter, Max Planck Institute for Research Gruyter: Berlin. Hermstrüwer, Y., Staatsorganisationsrecht, on Collective Goods Hermstrüwer, Y. (2020a). Artificial Intelligence in: Engel, C., Egidy, S., Hermstrüwer, Y., March 2018 and Administrative Decisions Under Uncer- Hoeft, L., Langenbach, P., O’Hara, L., (Eds.), tainty, in: Wischmeyer, Thomas / Rademacher, Verhaltenswissenschaftliche Analyse des Debarment and Collusion in Procurement Timo (Eds.), Regulating Artificial Intelligence, öffentlichen Rechts. Auctions Springer International Publishing: Cham, 2nd Conference of Empirical Legal Studies 199–223. Hermstrüwer, Y., Öffentliche Europe (CELSE 2018), KU Leuven Verteilungsverfahren: Matching im Öffentli- May 2018 Hermstrüwer, Y. (2019b). Algorithmische chen Recht (habilitation project). Verteilungsmechanismen im Infrastruktur- Debarment and Collusion in Procurement recht: Überlegungen zur Stauregulierung aus Auctions einer Marktdesign-Perspektive, in: Krönke, 28th Annual Meeting of the American Law & Christoph (Ed.), Regulierung in Zeiten der Prizes and Honors Economics Association (ALEA 2018), Boston Digitalwirtschaft, Mohr Siebeck: Tübingen, University 145–162. 2019 May 2018 Hermstrüwer, Y. (2018). Die Regulierung der prädiktiven Analytik: eine juristisch-ver- Travel Grant of Cornell University for the 3rd Democratic Blockchain Design haltenswissenschaftliche Skizze, in: Workshop on Mechanism Design for Social 36th Conference on Institutional and Theoret- Hoffmann-Riem, Wolfgang (Ed.), Big Data Good (MD4SG ’19), Phoenix, AZ ical Economics (JITE 2018), Florence – Regulative Herausforderungen, Nomos: June 2018 Baden-Baden, 99–116. 2018 Algorithmische Verteilungsmechanismen Grant of the Fritz Thyssen Foundation for und Verkehrsregulierung Revise & Resubmit the Workshop on Free Speech in the Digital Workshop Regulierung der Digitalwirtschaft, Age, Max Planck Institute for Research on Center for Advanced Studies (CAS), LMU Cerrone, C., Hermstrüwer, Y. and Robalo, P. Collective Goods Munich Debarment and Collusion in Procurement July 2018 Auctions. R & R: Games and Economic Behavior. Managing Private and Public Procurement Lectures and Presentations MaCCI Law & Economics Conference on The (since 2017) Law and Economics of Market Design, ZEW Working Papers Mannheim November 2018 Hermstrüwer, Y. (2020b). Fairnessprinzipien 2017 der algorithmischen Verwaltung: Diskrimi- 2019 nierungsprävention beim staatlichen Einsatz Debarment and Collusion in Procurement von Machine Learning, Working Paper, 1–46. Auctions Transparency and Fairness in School Choice Hermstrüwer, Y. (2020c). The Limits of Block- Behavioral and Experimental Economics Mechanisms chain Democracy: A Transatlantic Perspective Workshop (BEEW), LUISS Guido Carli, Rome Law and Economics Colloquium, Center for on Blockchain Voting Systems. TTLF Working March 2017 Advanced Studies in Law and Economics Papers No. 49, Stanford-Vienna Transatlantic (CASTLE), University of Bonn Technology Law Forum, 1–65. Kollektiv-orientierter Datenschutz. Nudging, January 2019 Datenschutzpaternalismus oder modernes Hermstrüwer, Y. (2019c). Transparency and Datenrecht? The Design of Consent Options: Normative Fairness in School Choice Mechanisms. MPI Karlsruher Dialog zum Informationsrecht, Challenges Discussion Paper 2019/11, 1–72. Karlsruher Institut für Technologie (KIT) Privacy Icons Workshop, Weizenbaum Insti- June 2017 tute, Berlin February 2019 Überwachung versus Autonomie im Recht Work in Progress der öffentlichen Gesundheit Transparency and Fairness in School Choice Tagung des Instituts für Europäische Cerrone, C., Hermstrüwer, Y., Kesten, O., Mechanisms Gesundheitspolitik und Sozialrecht, Goethe School Choice with Consent: An Experimental 3rd Workshop on Mechanism Design for Universität Frankfurt Study. Social Good (MD4SG ’19) & 20th ACM Con- September 2017 ference on Economics and Computation (EC Hermstrüwer, Y., Langenbach, P., Governing ’19), Phoenix, AZ with Humans and Machines: An Experimental June 2019 Investigation.

155 D. Research Portraits

Debarment and Collusion in Procurement Member of the focus group of the ABiDa-Re- Auctions port (Assessing Big Data) “Nudging – Regu- Annual Meeting of the Institute for Operations lation by Big Data and Behavioral Sciences”, Research and the Management Sciences Berlin Social Science Center (WZB) (Novem- (INFORMS 2019), Seattle, WA ber 2018) October 2019 Co-organizer, ECONtribute Law and Econ Transparency and Fairness in School Choice Workshop, University of Bonn & Max Planck Mechanisms Institute for Research on Collective Goods 4th Annual Conference of the French Law (since April 2020) and Economics Association (AFED 2019), University of Rennes 1 Program Committee, 4th Workshop on October 2019 Mechanism Design for Social Good (MD4SG ’20) 2020

Recht als Vernunftsystem – Computer als Vernunftmaschine? Arbeitskreis Grundlagen, 60. Assisten- tentagung im Öffentlichen Recht “Der digital- isierte Staat” (ATÖR 2020), University of Trier March 2020

Transparency and Fairness in School Choice Mechanisms 37th Annual Conference of the European Association of Law and Economics (EALE 2020), Université Panthéon-Assas (Paris 2) September 2020

Transparency and Fairness in School Choice Mechanisms International Junior Scholars Forum in Law and Social Science, University of Chicago, ETH Zurich and Tsinghua University December 2020

Teaching Spring Term 2019 Telecommunications Law Karlsruhe Institute of Technology (KIT)

Spring Term 2020 Telecommunications Law Karlsruhe Institute of Technology (KIT)

Professional Activities

Feasibility Study on Market Design for Public Construction Projects, Cooperation with ZEW Mannheim (2018)

Co-organizer, Workshop on Free Speech in the Digital Age, Max Planck Institute for Re- search on Collective Goods (March 2018)

Co-organizer, Workshop on Free Speech in the Digital Age, Humboldt University Berlin (October 2018)

156 Adrian Hillenbrand

Summary Report Together with Susann Fiedler, we published our work on Gain-Loss Framing I joined the institute in October 2012 in Interdependent Choice (Fiedler & Hil- as a PhD student of the Bonn Grad- lenbrand, 2020) in Games and Economic uate School of Economics (BGSE). Behavior, where we use eye-tracking as In 2016, I joined the MPRG group a complementary measure to study how of Fabian Winter, “Mechanisms of gain-loss framing influences choice in Normative Change”, as a postdoc. a dictator game. We show that, under loss framing, subjects are less altruistic The last years have been pretty excit- and also focus their attention more on ing. Together with Fabian Winter, we their own payoffs. This suggests that developed our DFG project “Volunteering losses to the own outcome are weight- under Population Uncertainty”. In the ex- ed more than losses to the receiver. perimental literature on cooperation and coordination, common knowledge about In parallel to the above work, I ventured Contact a certain group size is often a standard into a new field together with Svenja Hip- assumption. In the project, we study pel. Rapid technological developments [email protected] how uncertainty about the group size in online markets fundamentally change influences volunteering behavior. Our the relationship between consumers https://www.coll.mpg.de/ first paper in this line of research, Vol- and sellers. The rise of online plat- adrian-hillenbrand unteering under Population Uncertainty forms increases the transparency for (Hillenbrand, Winter, 2018), has already consumers in many markets because been published in Games and Economic a multitude of products can now easily Behavior. In a further paper (Hillenbrand, be accessed and browsed through on Werner and Winter, 2020), we study a single web page. At first sight, this volunteering at the workplace. In a large- is beneficial for consumers, since they scale experiment with 2,800 workers on can find more relevant and better-fitting an online platform, we show that group product offers. But online platforms can size – and consequently, group size also more easily gather data about con- uncertainty – has no influence on volun- sumers, in particular about those with teering in a work setting. This result is in a more intense search behavior on the stark contrast to theoretical predictions. particular site. In Strategic Inattention In a setting where only one volunteer is in Product Search (Hillenbrand & Hippel needed, the same proportion of workers 2020), we study the resulting trade-off volunteers, regardless whether the team for consumers theoretically, as well as in consists of 3, 30, or even 300 workers. a laboratory experiment. Consumers can We are currently working on a follow-up search intensively, receiving a well-fitting study to understand the underlying product, albeit at a very high price; or motives that drive the results. In the else they can search less, being strate- third project in this research area, we gically inattentive – and receive a worse study how different volunteering norms fit, but potentially for a better price emerge under population uncertainty in overall. While consumers do restrict repeated interactions. Our theoretical their search in the experiment, we find predictions are corroborated by the that it is the sellers and not the buyers experimental results. The DFG project who profit from higher filter choices. will come to an end this year, and I am We will extend this project in the future happy that our three papers now provide by analyzing the impact of competition, a strong contribution to the literature as well as the reaction of consumers on volunteering and cooperation. to different forms of price discrimination, e.g., personalized discounts.

157 D. Research Portraits

Publications (since 2017) Strategic Inattention in Product Search 11th Maastricht Behavioral and Experimental Economics Symposium (M-BEES), Maastricht Articles in Peer-Reviewed Journals June 2018 Fiedler, S. and Hillenbrand, A. (2020). Gain- Loss Framing in Interdependent Choice. Strategic Inattention in Product Search Games and Economic Behavior, 121, 232–25. (invited talk) 45th Annual Conference of the European Hillenbrand, A. and Winter, F. (2018). Volun- Association for Research in Industrial Eco- teering under Population Uncertainty. Games nomics (EARIE), Athens and Economic Behavior, 109, 65–81. September 2018 Hillenbrand, A. and Schmelzer, A. (2017). Strategic Inattention in Product Search Beyond Information: Disclosure, Distracted (invited talk) Attention, and Investor Behavior. Journal Düsseldorf Institute for Competition Econom- of Behavioral and Experimental Finance, 16, ics (DICE) 14–21. October 2018

Working Papers 2019

Hillenbrand, A. (2018). Cooperation with How the Stability of Social Relations Shapes Lists. MPI Discussion Paper 2018/1. the Emergence of Latent Norms Sixth International Meeting on Experimental Hillenbrand, A. and Verrina, E. (2018). The and Behavioral Social Sciences (IMEBESS) Differential Effect of Narratives on Prosocial May 2019 Behavior, MPI Discussion Paper 2018/16. Hillenbrand, A., & Hippel, S. (2017). Strategic How the Stability of Social Relations Shapes Inattention in Product Search. MPI Discussion the Emergence of Latent Norms Paper 2017/21. GfeW Meeting, DICE Düsseldorf September 2019

Submissions How the Stability of Social Relations Shapes the Emergence of Latent Norms Hillenbrand, A., Werner, T. and Winter, F. ESA European Meeting, Dijon (2020) Volunteering at the Workplace Under September 2019 Incomplete Information: Teamsize Does Not Matter. MPI Discussion Paper 2020/4. Strategic Inattention in Product Search Hillenbrand, A. and Hippel, S. (2019). Strate- (invited talk) gic Inattention in Product Search. University of Paderborn October 2019

Strategic Inattention in Product Search Work in Progress (invited talk) ZEW Mannheim Álvarez Benjumea, A., Hillenbrand, A., Winter, November 2019 F. and Zhang, N. Risk Perception and Norma- tive Change During the COVID-19 Outbreak. 2020 Hillenbrand, A. and Winter, F. How the Stability of Social Relations Shapes the Emergence of Strategic Inattention in Product Search Latent Norms. (invited talk) KIT Karlsruhe January 2020 Lectures and Presentations Strategic Inattention in Product Search (invited talk) (since 2017) Ghent University January 2020 2018

Strategic Inattention in Product Search (invited talk) GAEL Grenoble March 2018

The Differential Effect of Narratives ESA World Meetings, Berlin June 2018

158 Svenja Hippel

Summary Report threat of an overthrow does benefit the stability of an institution. We test this I was part of Christoph Engel’s research by introducing into the experimental group from October 2014 until end of paradigm the possibility of resetting the August 2018. I received my doctoral de- status ranking. We do not find support- gree in April 2018 and, after leaving the ing evidence that the mere possibility institute, I joined Daniel Müller’s Chair of an overthrow motivates low status for Information Economics and Contract groups to accept the social order. At the Theory at the University of Würzburg as same time, most high status players a postdoc. I will report mainly on proj- do not react sufficiently to the threat. ects that I started or undertook during They often fail to adapt their redistrib- my time at the institute. utive behavior to prevent overthrows. A stabilizing effect only appears in Property, Redistribution, and the groups with socially-minded high status Status Quo players. Our results address the theo- Contact retical assumptions underlying rights This project with Konstantin Chatzia to resistance and have implications for [email protected] thanasiou and Michael Kurschilgen the confidence we should place in such has kept us busy for quite some time. rights. If redistribution is to be counted https://www.coll.mpg.de/svenja-hippel Using a new experimental paradigm, we on as a safeguard of a democratic con- investigate the theoretical conjecture stitution, one should not solely rely on that redistribution might have a positive the reasoning of elites. This might call effect on economic efficiency by reduc- for stronger fortification of social rights. ing conflict over property rights. Even in countries with expansive (and expen- Strategic Inattention in Product Search sive) enforcement institutions, property rights are not perfectly secure. More Together with Adrian Hillenbrand, I effective self-enforcement could free investigate consumer behavior in online up resources. We model an economy in platform markets when the situation which wealth is produced if players vol- makes the extent of consumers’ product untarily comply with the – efficient, but search a strategic choice. Rapid tech- inequitable – prevailing social order, and nological developments are currently we vary exogenously whether redistri- changing the relationship between con- bution is feasible, and how it is orga- sumers and sellers. The rise of online nized. We find experimental evidence platforms increases the transparency for that redistribution benefits all status consumers in many markets. On the one groups as property disputes recede. It hand, this is beneficial for consumers, is most effective when transfers are not since they can find more relevant and discretionary, but instead imposed by better-fitting product offers. On the other some exogenous administration. Most hand, online platforms can also easily strikingly, it is the higher (and not the gather data about consumers. There- lower) status groups, who benefit from fore, consumers are potentially better redistribution being compulsory rather off by restricting their search behavior than voluntary. The paper is published in because, in extreme cases, personalized Experimental Economics. search results allow for perfect price discrimination. Whether consumers ap- Institutional Stability and the Threat preciate the strategic situation and react of Overthrow suitably might have a severe impact on consumer welfare and on the need for With the same team of authors, we regulation in online markets. In a labora- also use this experimental paradigm in tory experiment using a stylized market, another project. We explore whether the we find that consumers do restrict their

159 D. Research Portraits

search behavior to a certain extent. on public goods. From the mecha- of reproducibility of empirical research, But it is indeed the sellers (and not the nism-design perspective, the normative we started a new replication project consumers themselves) who profit from problem originates in the heterogeneity in 2019. Our replication of the experi- the consumers’ more intensive search of preferences. The experimental liter- mental “Contracts as Reference Points” behavior. The Harvard Business Manager ature, however, mostly assumes away (Fehr et al., AER, 2011) study, which is in published an article titled “Nasty Filters” this problem. Typically, valuations are the field of behavioral contract theory, is [“Fiese Filter”] about this research induced by the design of the experiment, forthcoming in the International Review project in their 06/2019 issue. We plan homogeneous and common knowledge. of Law and Economics. to extend this project by creating a We introduce the problem of the mecha- large-scale experimental online platform nism-design literature into the classical that allows systematically to assess setup of a public-goods experiment by Publications (since 2017) the reaction of consumers to different inducing heterogeneous valuations and forms of price discrimination. endowments. Additionally, we add an Articles in Peer-Reviewed Journals experimental social planner. In a with- Hippel, S. and Hoeppner, S. (forthcoming). The Informational Robustness of a in-subject design, we vary whether the Contracts as Reference Points: A Replication. International Review of Law and Economics. Public-Goods Mechanism group members’ valuations are public or private information. We also vary Chatziathanasiou, K., Hippel, S. and Kur- This project is an explicit laboratory whom we entrust with choosing from schilgen, M. (2020). Property, Redistribution, and the Status Quo: A Laboratory Study. test of the concept of informational a set of payment rules: the uninvolved Experimental Economics. robustness that was developed in the planner or an involved member of the Hippel, S. and Hoeppner, S. (2019). Biased theoretical literature on robust mech- group. The results show that uninvolved Judgements of Fairness in Bargaining: A Rep- anism design. The experimental setup social planners predominantly choose lication in the Laboratory. International Review utilizes a generalized Vickrey-Clarke- a payment rule that gives every group of Law and Economics, 58 (2019): 63-74. Groves mechanism in a public-goods member the same final payoff, even if setting. In the different experimental misrepresentation is possible. Authori- Revise & Resubmit conditions, the mechanism is played ties are overly optimistic about truth-tell- Friehe, T., Hippel, S. and Schielke, A. (R&R). out either before or after the players get ing. Interested social planners abuse Appeasing Yourself or Others? The Use of to know the counterpart’s payoff type. their power, except if the opportunity Self-punishment and Compensation and How This mirrors the theoretical equivalence cost of a more balanced rule is small. it Influences Punishment.Journal of Econom- demanded for achieving informational ic Psychology. robustness. Additionally, the experiment Replications varies the level of interdependence Working Papers of valuations of the players to induce Following a call for the Empirical Legal Chatziathanasiou, K., Hippel S., and Kur- multiple (equally efficient) equilibria in Studies Replication Conference in the schilgen, M. (2020). Do Rights to Resistance some of the games resulting from the end of 2017, together with Sven Ho Discipline the Elites? An Experiment on the mechanism. Empirical results show that eppner, I set out to replicate the highly Threat of Overthrow. MPI Discussion Paper the mechanism used is indeed infor- influential paper “Biased Judgements of 2020/27. mationally robust and that there are no Fairness in Bargaining” (Babcock et al., Hillenbrand, A. and Hippel, S. (2019). significant efficiency reductions for mul- AER, 1995) in the computer laboratory. Strategic Inattention in Product Search. MPI Discussion Paper 2017/21. tiple equilibria. However, heterogeneous The original study uncovers evidence valuations for the public good pose a that knowledge about one’s role in a Hippel, S. (2019). Testing the Informational serious challenge to incentive compat- settlement-bargaining situation increas- Robustness of a Public Good Mechanism. ibility. Truth-telling rates drop by half es the frequency of bargaining impasse. Engel, C. and Hippel, S. (2017). Experimental for individuals with a low valuation. To Our results are largely in line with the Social Planners: Good Natured, but Overly Optimistic. MPI Discussion Paper 2017/23. exclude that this effect was an artefact original findings, although we obtain of the experimental setup, I collected a substantially smaller effects. Given new wave of treatments for this project our new data, a Bayesian replication in the end of 2019. analysis reallocates the large share of Work in Progress credibility to a null model, but we argue Herweg, F., Hippel, S. and Müller, D. Experimental Social Planners: Good that this result is driven by the much (Dis-)Appearance of Cyclical Choices: An Experimental Test of Intransitive Theories for Natured, but Overly Optimistic smaller effect size that we observe in Choice under Risk. the highly controlled environment of the Together with Christoph Engel, I try to laboratory. The paper is published in the Hippel, S. and Kim, C. The Persistence of Reduced Risk Taking: The Effect of Betrayal bridge the gap between the experimen- International Review of Law and Eco- on Stock Market Investment. tal and the mechanism design literature nomics. Acknowledging the importance

160 Scholarships Testing the Informational Robustness of a Teaching Public Good Mechanism NABE Foundation Scholarship for the 33rd ZEW, Research Group Market Design, Mann- Annual NABE Economic Policy Conference. heim Winter term 2018/19 August 2018 Advanced Microeconomics Teaching Assistant Lectures and Presentations Strategic Inattention in Product Search University of Würzburg Jahrestagung Verein für Socialpolitik, (since 2017) Freiburg Winter term 2018/19 September 2018 Contract Theory 2017 Teaching Assistant Testing the Informational Robustness of a University of Würzburg Experimental Social Planners: Good Natured, Public Good Mechanism but Overly Optimistic 13th Nordic Conference on Behavioural and Summer term 2019 NYU CESS 10th Annual Experimental Political Experimental Economics, Odense Ökonomische Theorie des Risikos [The Eco- Science Conference, New York September 2018 nomics of Risk] February 2017 Teaching Assistant 2019 University of Würzburg Strategic Inattention in Product Search 33rd Annual NABE Economic Policy Confer- Testing the Informational Robustness of a Summer term 2019 ence, Washington, D.C. Public Good Mechanism Advanced Microeconomics March 2017 24th Spring Meeting of Young Economists, Teaching Assistant Brussels University of Würzburg Experimental Social Planners: Good Natured, April 2019 but Overly Optimistic Summer term 2019 Northwestern University, Kellogg School of Biased Judgements of Fairness in Bargain- Experimental Economics Management, Evanston ing: A Replication in the Laboratory Lecturer (One-week Summer School March 2017 Barcelona GSE Summer Forum, Barcelona Course) June 2019 Institute of Law and Economics, University of Strategic Inattention in Product Search Hamburg ESA World Meeting, San Diego Property, Redistribution, and the Status Quo: June 2017 A Laboratory Study Winter term 2019/20 Jahrestagung der Gesellschaft für experimen- Contract Theory Experimental Social Planners: Good Natured, telle Wirtschaftsforschung, Düsseldorf Lecturer but Overly Optimistic September 2019 University of Würzburg ESA World Meeting, San Diego June 2017 Property, Redistribution, and the Status Quo: Winter term 2019/20 A Laboratory Study The Economics of Fairness Strategic Inattention in Product Search Jahrestagung Verein für Socialpolitik, Leipzig Lecturer (Block Seminar, together with Maj- 11th IMPRS Uncertainty Topics Workshop, September 2019 Britt Sterba) Trento University of Bayreuth September 2017 Strategic Inattention in Product Search 15th Bavarian Micro Day, Bayreuth Summer term 2020 Advanced Microeconomics 2018 November 2019 Teaching Assistant University of Würzburg Testing the Informational Robustness of a Property, Redistribution, and the Status Quo: Public Good Mechanism A Laboratory Study Summer term 2020 Thurgau Experimental Economics Meeting, University of Bayreuth, Economics Research The Economics of Fairness Kreuzlingen Seminar, Bayreuth Lecturer April 2018 December 2019 University of Würzburg Biased Judgements of Fairness in Bargain- 2020 ing: A Replication in the Laboratory Empirical Legal Studies Replication Confer- (Dis-)Appearance of Cyclical Choices: An Public Service ence, Claremont Experimental Test of Intransitive Theories Member, Selection committees, Max Weber April 2018 for Choice under Risk Program, Elite Network of Bavaria, since ESA Global Online Meetings 2015. Testing the Informational Robustness of a September 2020 Public Good Mechanism 11th Maastricht Behavioral and Experimental Economics Symposium, Maastricht Events Organized Professional Activities June 2018 Local Organizer, Meeting of the Committee Memberships Testing the Informational Robustness of a for Organizational Economics of the Verein Public Good Mechanism für Socialpolitik, University of Würzburg, Member of the American Economic Associ- ESA World Meeting, Berlin scheduled for 8-9 September 2020, post- ation June 2018 poned to 2022.

161 D. Research Portraits

Member of the European Economic Associ- ation Member of the Economic Science Associa- tion Member of the German Association for Experimental Economic Research e.V. [Ge- sellschaft für experimentelle Wirtschaftsfor- schung e.V.] Member of the German Economic Associa- tion [Verein für Socialpolitik] Member of the Royal Economic Society

Referee for International Review of Law & Economics, Journal of Conflict Resolution, Journal of Economic Behavior & Organization Spring Meeting of Young Economists 2020

162 Leonard Hoeft

Summary Report legal compliance is a shared endeavor and a subset of social norm compliance. I finished my PhD in law in 2018. Since Participants in this practice take an then, I have been working on my ongo- “internal point of view” towards norms, ing projects while completing my legal accepting them as guidelines, criticizing training by preparing for the second bar others, and accepting their criticism as exam and working as a legal clerk. legitimate. While Hart believed that in a coercive state only few officials must My main research interests lie at the take such a point of view, he argued that intersection of legal philosophy and a healthy system would exhibit a consid- social science. The former specifies erable number of people taking the inter- theories of law which rely on specific as- nal point of view towards legal norms. sumptions concerning human behavior My book examines whether laboratory and legal institutions. These assump- findings instruct us that social norms tions are often grounded in shared are indeed a shared practice, and wheth- Contact intuitions, but lend themselves to the er we have reason to believe that this ex- challenge of empirical testing and the tends to legal norms. The research sug- [email protected] incorporation of interdisciplinary views. gests that both are true. Furthermore, I investigate how institutional features https://www.coll.mpg.de/leo-hoeft My specific interdisciplinary approach pervasive in legal systems interact with focuses on the intersection with this practice. I find that concepts such (behavioral) experimental economics. as authority, voting, focal points, etc. in- I believe that legal philosophy lends deed influence norm compliance, often itself more naturally to this field than by changing the beliefs about the shared its doctrinal counterparts, as it often practice in the respective experimental claims to be independent of a specific communities. During my clerkship, I legal culture and context. Furthermore, finalized a short introduction into the legal philosophy is highly abstract and experimental literature and arguments specifies the relationship of institution- against sanction-based theories of law al mechanisms. This allows us to test and published it in Ratio Juris, an inter- jurisprudential hypotheses in abstract national peer-reviewed journal for legal laboratory experiments. This view is philosophy (a). My PhD will be published increasingly shared, and in the last as a book with Duncker & Humblot. couple of years the field of experimental philosophy has formed a subsection Aside from my PhD, I began several named experimental jurisprudence. To experimental projects with co-authors, further the exchange with legal philos- centering around the interaction of in- ophers, I organized a workshop on the stitutions and social norms. In addition foundations of law and social science, to my clerkship, I have finalized and with Matthias Mahlmann of the Uni- resubmitted these papers to various versity of Zurich as keynote speaker. economic and psychology journals.

My main project in my PhD was to The first experimental project inves- relate the legal theory of H.L.A. Hart, tigated power abuse in a laboratory widely considered the most influential setting. We implemented a linear legal philosopher of the 20th century, to public-goods game with only one laboratory work on norm compliance in second-party punisher, and we varied experimental economics. Hart proposed transparency and punishment power that the predominantly sanction-ori- to see under which conditions punish- ented concepts of law fundamentally ers are willing to abuse their power by misunderstood the nature of norm implementing contribution norms they compliance. Instead, he proposed that do not adhere to themselves. Indeed, we

163 D. Research Portraits

find a large amount of abuse medi- tations of experimental results. Specif- ated by transparency, but only under ically, we argue that selecting specific high power. Part of this project was decontextualized quotes from a ruling published in Economic Letters (b). can distort the meaning of the specific passage as a whole and is therefore in Another project with the aim of con- need of justification. The article takes a tributing to the question of legal norm stance against the suggestion of imple- compliance investigates the effect menting semi-empirical methods among of authority on prosocial and selfish judges, in which they conduct informal decision-making. We hypothesize that polls among friends to justify contrac- authority is particularly influential in tual interpretation. It warns that this settings with incomplete information, as understanding of contractual implemen- it cuts short information search and the tation would reap little of the benefits of formation of preferences over the fully empirical studies and boils down to an specified set of options. To that end, intransparent authority argument (c). we implement a dictator game in which the payoffs of the other participants are not known to the dictator. We use the Publications (since 2017) experimenter’s position of authority to ask for specific actions, investigating Articles in Peer-Reviewed Journals when participants defer to authority, Hoeft, L. (2019). The Force of Norms, Ratio when they refuse to do so, and when Juris, 32(3), 339–362. they decide to uncover the information Hoeft, L. and Mill, W. (2017). Selfish Punish- about the payoffs of the recipient. ers. An Experimental Investigation of Desig- nated Punishment Behaviour in Public Goods, Economics Letters, 157, 41–44. The last laboratory project investigates moral decision-making. We use Hamann, H. and Hoeft, L. (2017). Die empirische Herangehensweise im Zivilrecht. eye-tracking to investigate what kind Lebensnähe und Methodenehrlichkeit für die of information participants focus on in juristische Analytik? Archiv für civilistische moral dilemmas. According to the prev- Praxis (AcP), 217(3), 311–336. alent dual-process theory of moral decision-making, deontological decisions Working Papers should feature a relatively shorter and Hoeft, L. , Mill, W. and Vostroknutov, A. less complex decision process, while (2019). Normative Perception of Power utilitarian decisions should require more Abuse, MPI Discussion Paper 2019/6. information search and deliberation. We hope to find systematic differences between typically utilitarian and typical- Work in Progress ly deontological decision-makers. We expect utilitarian decision-makers to un- Hoeft, L. and Mill, W., The Abuse of Power: An Experimental Investigation of the Effects dergo a more effortful decision process of Power and Transparency on Centralized with longer decision times and more Punishmen, MPI Discussion Paper 2017/15. fixations. Additionally, utilitarians should Rahal, R.-M., Hoeft, L. and Fiedler, S., Eyes on direct their attention more towards Morals: Investigating the Cognitive Process- outcomes, while deontological deci- es Underlying Moral Decision Making via sion-makers should focus more on cues Eye-Tracking. about the respective action in question. Hoeft, L, Mill, W. and Kurschilgen, M., Authori- ty & Wiggle Room. Finally, I have written a response to a survey study on contract interpretation with another co-author, published in a German law journal. We caution against the somewhat careless use of empirical methods for specific legal questions and show various pitfalls of naïve interpre-

164 Zwetelina Iliewa

Overview and the 2017 Annual Meeting of the American Finance Association (AFA). I am a financial economist with research interests in the fields of behavioral and In Heimer et al. (2020), we provide new experimental finance and experimental insights into how individuals choose economics. I am a Senior Research to take risks in dynamic environments Fellow at the Max Planck Institute where they can opt out at any time, and for Research on Collective Goods how they re-evaluate their decisions af- (Experimental Economics Group), an ter experiencing gains and losses. Many external lecturer at the Copenhagen economically important settings, from Business School (Finance Depart- financial markets to consumer choice, ment), and a member of the managing involve sequential decisions under risk. board of the Society for Experimental Data from these dynamic settings run Finance. I hold an MSc in Econom- counter to findings in one-shot settings: ics from the University of Mannheim people are anomalously risk-averse in and a PhD in Finance from the Lud- the latter, while even taking on a nega- wig-Maximilians University in Munich. tive expected-value risk in the former. We use two pre-registered experiments In Glaser et al. (2019), we use a series of and a unique brokerage dataset of trad- experimental studies to document and ers’ investment plans and subsequent explain the occurrence of two specific decisions to shed light on this discrep- violations of the invariance assumptions ancy. A large majority of participants of normative decision theory. Firstly, plan to follow “loss-exit” strategies – to we show that presenting subjects’ past continue taking risk after gains and to price charts induces different expecta- stop after losses. Actual behavior ex- tions from showing them past return hibited the reverse pattern: participants charts, even though the information is cut their gains early and chased their identical. Secondly, we show that asking losses. We find an analogous dynamic subjects to forecast prices and ask- inconsistency in the investment plans ing them to forecast returns results in and subsequent decisions of traders in different expectations. Across three ex- our unique brokerage dataset. We for- perimental studies, we vary the level of mally demonstrate that this behavioral expertise of the subjects (students ver- pattern identifies the dynamic predic- sus professionals), the amount of infor- tions of Cumulative Prospect Theory. mation, and the incentive schemes. We A significant demand for commitment find strong effects, which are consistent devices points to at least partial sophis- across all studies: asking subjects to tication about the dynamic inconsis- forecast returns, as opposed to prices, tency. We use simulations to quantify results in more optimistic expectations, that the welfare costs of naiveté for whereas showing subjects return charts, a representative agent are over one as opposed to price charts, results hundred and ten percent of the stakes in lower expectations. We show that in a one-round investment. Moreover, professional experience in the finance the participants’ widespread demand industry is not a useful remedy, but for non-binding commitment, which is cognitive reflection mitigates the impact ineffective in mitigating dynamic incon- of format changes. We conclude that sistency, highlights a second form of differences in expectations are driven by naiveté with regard to the effectiveness characteristics of the intuitive number of such “soft” commitment. Our results sense. Our paper was accepted at sev- have implications for evaluating unin- eral top conferences, most notably the tended effects of recently introduced 2016 Experimental Finance Conference European regulations that mandate soft

165 D. Research Portraits

commitment. This paper was presented back and emotion regulation training; at several conferences and workshops, and (iii) to do both. The objectives of our most notably the 2019 SEF Experi- study are twofold. First, we aim to under- mental Finance Conference, the 2020 stand how robo-advisers affect financial NBER Behavioral Finance Workshop, risk-taking and the revisiting of invest- the 2020 SFS Cavalcade, and BEAM ment decisions. Second, we aim to iden- 2020 at U.C. Berkeley; it has also been tify who is most affected by robo-advice. accepted for the 2020 Annual Meeting of the European Finance Association. Publications (since 2017) The motivation behind Christoffersen et al. (work in progress) comes from Peer-reviewed Articles the experimental finding that subjects Glaser, M., Iliewa, Z. and Weber, M. (2019). overweight information they have Thinking about prices versus thinking about obtained through observation (i.e., returns in financial markets.The Journal of witnessing) over information they have Finance, 74(6), 2996–3039. learned from description. The study tests the boundaries of the experimental Working Papers finding in the real world by examin- Heimer, R., Iliewa, Z., Imas, A. and Weber, ing the stock-market expectations of M. (2020). Dynamic Inconsistency in Risky finance professionals with decades Choice: Evidence from the Lab and Field. of experience in the finance industry. It shows that stock-market returns witnessed early on in a professional’s Work in Progress career are more formative than those Christoffersen, B., Hoffmann, A., Iliewa, Z. and witnessed recently. The finding is unique Jaroszek, L., Fading Memory Fast and Slow: in this strand of empirical literature, Experiential Learning on Main Street and Wall as previous studies have repeatedly Street. shown the opposite (e.g., Malmendier Dorner, V., Iliewa, Z., Weber, M. and Weinhardt, and Nagel, 2011). The new empirical C., Can a Robo-Adviser be a Money Doctor? finding can be explained by the use of a proprietary dataset, which we have hand-collected, in order to measure Teaching accurately the exact beginning of the period over which the professionals have 2019 witnessed the stock market. The paper was accepted at major conferences, Behavioral Finance most notably the 2017 Annual Meeting Copenhagen Business School of the European Economic Association (EEA), the 2017 Annual Meeting of the Financial Management Association (FMA), and the 2018 CESifo Summer Workshop on Expectation Formation.

In addition, in Dorner et al. (work in progress), we examine experimentally how to design a robo-adviser optimally for investment in financial assets. Specifical- ly, we focus on robo-advisers which are able (i) to “speak” the language of the investors by communicating information on the statistical properties of risky assets in an intuitive way; (ii) to “listen” to the investor by monitoring her emotional reactions and providing her with biofeed-

166 Mustafa Kaba

I joined the EEG of the Max Planck Insti- the turnout-buying channel is at least as tute for Research on Collective Goods in effective as the vote-buying channel. September 2020 as a Research Fellow. I expect to defend my PhD in November Second, I document evidence on how 2020 at the Economics Department of partisanship conditions the effects of the European University Institute. My distributive spending on voting be- main areas of research are political havior. I find that it increases turnout economy and behavioral sciences. I aim in incumbent strongholds, whereas to generate fine-grained and causal ev- it suppresses turnout in opposition idence for the effects of public policies strongholds. This finding implies a and interventions targeted to improve possibility for a null result for the turn- key outcomes in economics and politics. out-buying channel when partisanship is not taken into account. This null-result To this end, the majority of my research implication, in turn, may be very much applies the causal inference methods related to the negligence of turnout Contact of microeconometrics and field ex- channel in the previous literature. periments. I work with observational, [email protected] administrative, survey, and experi- Third, I show how the spatial distribution mental data to generate new insights of partisan groups in the geographical https://www.coll.mpg.de/mustafa-kaba for both informing theory and deci- catchment areas of local public goods sion-makers. The following describes may influence the electoral effects of my current work and future plans. such goods. It is usually a daunting task to obtain fine-grained geographical information on distributive spending Current Work programs. Yet, spatial distribution of partisan groups may influence both Differential Electoral Returns to Local the allocation of public goods and also Public-Goods Provision: the associated electoral returns. Using precise geographical information, I The previous literature on the elec- show that the increased inter-group toral effects of distributive spending interaction may have a polarizing has successfully documented causal effect and reduce the net effects of evidence for such effects. Much less distributive spending. To the best of understood, however, are the mech- my knowledge, this is the first evidence anisms through which distributive for the conditioning of electoral ef- spending exerts its effects on voting fects by spatial partisan distribution. behavior. I investigate these mechanisms by leveraging the geographical Understanding Corporate Culture, Lead- variation in proximity of voters to a ership, and Development of Networks in local food subsidy program that took Corporations place in Istanbul, Turkey, in 2019. This joint work is based on a field My contribution to this body of work experiment with several corporations is threefold. First, I provide causal in different provinces of Turkey. It is evidence both for the vote- and the the first part of a larger project with turnout-buying channels. The latter Sule Alan, Gozde Corekcioglu, Mert channel is particularly overlooked in the Gumren, and Matthias Sutter. previous literature, although it is a very common form of political participation Although the experiment is still being and it has important implications on fielded, our goal in this first attempt is political accountability. I document that to understand better the development

167 D. Research Portraits

of professional and personal networks economic preferences. I then estimate 2) Public Procurement, Governance, in corporations, and how, in turn, these this measure for 18 European countries and Economic Development networks affect turnover rates, perfor- for three points in time. This provides mance metrics, and employee satisfac- us with a systematic approach to track In this joint project with my colleagues tion and fulfillment. Using the baseline the evolution of class distinctiveness in at Bogazici and Duke University, we are measurements that we collected in the economic preferences. Finally, I investi- in the process of building a dataset that field, we specifically investigate how gate the statistical relationship between covers the universe of public procure- the share of female leaders affects the class distinctiveness in economic ment in Turkey from 2010 until today. the structure of social networks within preferences and class voting – the phe- The aim of this endeavor, in general, firms and the corporate climate as nomenon that voters make their choices is to shed light on the relationships it is perceived by the employees. based on their socioeconomic class. between public procurement, the discretion power of regional author- International Reputation and Escaping ities, the quality of governance, and Reputation Traps Future Plans the local economic development.

The theoretical political economy and Below, I summarize my future research More specifically, we are interested development economics literature have plans in two categories. The first one first in uncovering motivations in public formally modeled and investigated broadly aims to make use of behavioral procurement, such as conflict/violence reputation and poverty traps, respec- insights in understanding political and mitigation, responding to the needs of tively. The existing theoretical and economic phenomena. The second one the locality/median voter, vote-buying, empirical body of research in these is related to advancing my research rewarding the politically organized fields tells us that a reputation trap may agenda on testing insights from political organizations, etc. Furthermore, we plan well explain a significant part of poverty economy by means of experiments to explore the trends in the composition traps. This, in turn, raises the question and causal inference methods. of public procurement over different proof how to escape the reputation trap curement types such as goods, services, and increase international reputation. 1) Behavioral Insights in Political and construction; and we wish to investi- Economy gate their effects on the local economy. In a joint project with Nicole Stoelinga, who is a colleague of mine at the EUI, I am particularly interested in the we hypothesize that mega sport events misconceptions and reasoning mech- Working Papers such as the Olympic Games provide a anisms of citizens, and how these, in Kaba, M. (2020). The Partisan Conditioning high cost and credible signal in terms turn, relate to polarization, but also to of Electoral Returns to Local Public Good of international reputation, and help the depolarization of society. From the Provision. the developing countries to escape the recent works in behavioral sciences Corekcioglu, A., Kaba, M. and Sutter, M. (2020). reputation trap. We employ a synthetic and political economy, we already know Leadership, Social Networks and Corporate control design to evaluate whether host- that people not only polarize on policy Climate Through a Gender Lens. ing or bidding on the Olympics helps to issues, but also on factual information Kaba (2020). Class Distinctiveness and Class escape a reputation trap in terms of trade. such as the unemployment rate. I am Voting. especially curious about the role of Kaba, M. and Stoelinga (2020). Escaping Measuring Class Distinctiveness in experts in the forming of these mis- the Reputation Trap: Revisiting the Olympic Preferences conceptions, the distrust in experts, Effect. and the implications on the polariza- The evolution of preferences of distinct tion and depolarization of society. socioeconomic classes is important to Professional Activities understand today’s political struggles. Additionally, I am curious to know more It is widely assumed that the class about how economic preferences (such Referee for divisions in economic preferences have as risk-taking, time preferences, cooper- European Economic Review been blurring over time due to higher ation, competitiveness, etc.) overlap or living standards. However, we lack a rig- intersect with political preferences and orous measure of it that is comparable attitudes (such as respect for authority, across time and space. Using predictive cultural conservatism, advocating harsh modeling, I propose to use “the ability punishments, favoring hierarchies, etc.), of inferring one’s socioeconomic class and how they form more general clus- solely from one’s economic preferenc- ters of preferences encompassing both es” as the distinctiveness measure in economic and political preferences.

168 Mahdi Khesali

I joined MPI on 1 October 2020. After which a legal system successfully completing a law degree in my home reaches the aim. country, I started a multidisciplinary master program at Leuphana University, III) What are biological mechanisms which awakened my interest in a trans- through which norms foster cooper- disciplinary approach to law. I have been ation? The picture of long-standing convinced that the Max Planck Institute cooperation is not complete unless for Research on Collective Goods pro- we look at the mechanisms through vides optimal conditions to pursue this which solutions to the collective interest. Therefore, I applied for IMPRS action problem take effect. This falls program. into an intersection between life sciences and social sciences. All de- I may break my interest down into three cisions ultimately have a biological major questions for which I hope to find explanation. I would like to investi- a proper answer, using the skills and gate neuroscientific mechanisms Contact methods I will gain during the program. that different norms trigger. While I am going to look at cultural aspects [email protected] I) Does the effectiveness of legal in- of the collective action problem in terventions partially depend on their the second question, here I am more https://www.coll.mpg.de/mahdi-khesali relationship with informal institu- interested in the biological dimen- tions (e.g., morality and customs)? sion. One of the oldest discussions in legal philosophy is about the interaction between legal and other normative systems. My purpose is to add a positive-oriented insight to this discussion.

II) How should we design a proper legal intervention for long-standing cooperation in a society? At the core of a prosperous and stable society, there are effective methods for solving the problem of collective action (cooperation) in different contexts. One purpose of a legal system is to provide frameworks conducive to long-standing cooperation. I intend to investigate conditions under

169 D. Research Portraits

170 Lukas Kiessling

Overview processes. We show that, even conditional on friendship ties, strong homoph- I joined the EEG group of the Max ily exists in productivity and personality. Planck Institute for Research of Collec- In light of these results, we discuss how tive Goods in May 2019 as a Research this provides a micro-foundation for Fellow for the last phase of my PhD at non-linear and/or heterogeneous peer the Bonn Graduate School of Econom- effects commonly found in the literature. ics, which I completed in January 2020. Since February 2020, I have been a In a recent paper with Jonathan Nor- Senior Research Fellow at the institute. ris (Kiessling and Norris, 2020), we My research employs field experiments, study how students’ relative ranks large-scale surveys, and secondary anal- in their school cohort affect their ysis of observational datasets to answer well-being, both in the short term and research questions focusing on three in the long run. We show that having themes: (i) how peers affect the well-be- a higher rank in school improves not Contact ing and behavior of adolescents; (ii) only the students’ immediate mental how parents raise their children with the health, but these effects last for at [email protected] corresponding consequences for the de- least 14 years and carry over to eco- velopment of children’s preferences; and nomic outcomes in adulthood. The https://www.coll.mpg.de/lukas-kiessling (iii) determinants of gender disparities in findings of this study thus provide educational and labor-market outcomes. evidence how the school environment can have long-lasting consequences Peer Effects for the well-being of individuals.

It is widely accepted that peers influ- Parental Decision-Making and its ence consumption behavior, general Implications for the Development of well-being, and performance. Yet, we do Preferences not know much about how individuals choose these peers in the first place, Not only peers shape an individual’s nor about the consequences of system- preferences, skills, and well-being. Even atic peer selection. In the context of a more important for the development framed field experiment, Jonas Rad- of children and adolescents is their bruch, Sebastian Schaube, and I try to fill families. In ongoing work with Shyamal this gap. First, we study the causal ef- Chowdhury, Hannah Schildberg-Hörisch, fect of being able to self-select peers on and Matthias Sutter (Kiessling et al., performance, and decompose differenc- 2020c), we investigate how parents es into their possible causes (Kiessling shape the development of time prefer- et al., 2020a). We find that self-selection ences in children in rural Bangladesh. of peers improves performance; we also We show that parents anticipate chil- find evidence for peer effects in several dren’s present bias and try to mitigate dimensions; and we note that the peer this by acting paternalistically. Moreover, composition changes under self-selec- we find the intergenerational transmis- tion. Yet, these changes cannot account sion of time preferences to be more pro- for the performance improvements nounced for non-paternalistic parents that we observe. Rather, we show that than for their paternalistic counterparts. self-selection allows for autonomy over These results thus contribute to the liter- the peer assignment, which in turn has ature by showing how different forms of a direct effect on performance through parenting shape children’s preferences. increased motivation. In a second paper, Kiessling et al. (2020b), we describe Given that different parenting styles which factors – productivity, personality, are related to different transmission and friendship ties – drive peer-selection patterns, this raises the question how

171 D. Research Portraits

parents perceive the returns to different benefits of different majors. The results Work in Progress parenting styles. In Kiessling (2020), I of this study will not only characterize Kiessling, L., Chowdhury, S., Schildberg- study parents’ beliefs about the returns gender differences in perceived returns, Hörisch, H. and Sutter, M. (2020c). Parental to two factors affecting the development but in particular open the black box Paternalism and the Intergenerational Trans- and long-term outcomes of children: (i) of role-model interventions to under- mission of Patience. parenting styles defined by the extent of stand how these may help increase Bigoni, M., Bortolotti, S. and Kiessling, L. warmth and control parents employ in female enrollment in STEM majors. (2020). Gender Gap in Science: The Effect raising their children, and (ii) neighbor- of Role Models on Expected Pecuniary and Non-Pecuniary Returns. hood quality. Based on a representative sample of over 2,000 parents in the Outlook for 2020–2022 United States, I show that parents hold Scholarships and Honors well-formed beliefs: they expect large In addition to the ongoing projects returns to the warmth dimension of outlined above (Kiessling et al., 2020c; 2020 parenting, as well as to living in a good Bigoni et al., 2020), I would like to ex- Nominated by the Verein für Socialpolitik as neighborhood, and perceive parenting plore further what drives parental invest- a participant for the 7th Lindau Meeting in as being able to compensate partly for ments. While their importance for the Economic Sciences (postponed to 2021) adverse environments. Yet, there is no development of children is undisputed socioeconomic gradient in perceived and there is evidence of disparities in returns, but they are predictive for actual parenting practices by socioeconomic Professional Activities parenting styles. This suggests that status, we do not know much about the parental beliefs are an important deter- underlying causes of these disparities Referee for minant of parental decision-making that and how parent-child interactions shape American Economic Review, Diligentia cannot be proxied by other sociodemo- parental investments. Furthermore, I Foundation, Economic Journal, Educational graphic variables. would like to extend my research on the Researcher, Journal of Economic Behavior and economic causes and consequences Organization, Labour Economics, LABOUR: Review of Labour Economics and Industrial Gender Differences in Educational and of poor mental health: which economic Relations, Management Science Labor-Market Outcomes factors affect mental health and how having poor mental health translates In a third strand of research, I aim at into economic decision-making. understanding gender disparities in tertiary education and labor markets. In joint work with Pia Pinger, Philipp Publications Seegers, and Jan Bergerhoff (Kiessling et al., 2019), we present evidence from Revise & Resubmit a large-scale study on gender differ- Kiessling, L. (2020). How Do Parents Perceive ences in wage expectations. Based on the Returns to Parenting Styles and Neighbor- a sample of over 15,000 students in hoods? R&R: Journal of Econometrics. Germany, we document a large gender Kiessling, L., Radbruch, J. and Schaube, S. gap in wage expectations, amounting (2020a). Self-selection of Peers and Perfor- to approximately 500,000 EUR over the mance. R&R: Management Science. life cycle and resembling actual wage differences. In addition, we explore Working Papers potential determinants of this gap and Kiessling, L., Pinger, P., Seegers, P. and Berger- show that males and females follow hoff, J. (2019). Gender Differences in Wage different negotiation strategies. Expectations: Sorting, Children, and Negotia- tion Styles, IZA Discussion Paper no. 12522. In work in progress with Maria Bigoni Kiessling, L., Radbruch, J. and Schaube, S. and Stefania Bortolotti (the latter is (2020b). Determinants of Peer Selection. a former member of the EEG group), Kiessling, L. and Norris, J. (2020). The Long- we aim at evaluating whether male run Effects of Peers on Mental Health, MPI and female high-school students hold Discussion Paper 2020/12. different beliefs about the pecuniary and non-pecuniary returns to STEM majors at university, and if so, how role models change the perceived costs and

172 Pascal Langenbach

Summary Report empirical research to theoretical and doctrinal legal research as time passes. I have been a Senior Research Fellow in the Behavioral Law and Econom- For the rest of this report, I would like ics Group since July 2018. Before to present the research I conducted that, I held a part-time position as a since 2017 and what I am planning to Research Fellow in the same group do in the near future. I will start with while pursuing my legal traineeship a short description of the planned (Rechtsreferendariat). Even before topic for my habilitation thesis and that, I was a doctoral student in the two smaller non-empirical legal texts. IMPRS Uncertainty, also at the MPI. So Then I will move on to my experi- while this report covers the whole time mental projects and publications. span from 2017 to 2020, I will focus on the time from July 2018 onwards. My intended habilitation project will deal with the challenges a heterogeneous Contact In the fall of 2019, I was a Visiting population poses to public administra- Fellow at the Law Department of the tion and administrative law. The project [email protected] European University Institute in Florence, starts from the observation that people hosted by Professor Mathias Siems. are not uniformly responsible for social https://www.coll.mpg.de/ problems and, moreover, also differ in pascal-langenbach In my research, I engage with two their reactions to regulation and their different fields of study: legal research ability to contribute to the solution to in the area of public law, and legal these problems. This heterogeneity experimental work, mainly using the is of potential relevance for the effi- experimental law and economics frame- ciency of public administration, as work. I see two partly concurring goals regulation could be tailored specifi- of my research at the MPI. First, I aim cally to certain types of individuals. to produce high-quality experimental research at the intersection of law and The project will study the practical and behavioral sciences. Secondly, I try to legal challenges the administration incorporate an empirically and behavior- might face when administering a het- ally informed perspective into my legal erogeneous population. Practical (and scholarship. A third goal is to complete legal) problems arise, for example, from the necessary requirements to qualify the questions of how the administra- for habilitation in the field of public law tion may identify the different types of during my time as a postdoc at the MPI. addressees and how it may choose the adequate means to apply for each type. In the first two years of my postdoc Further, differential treatment of some phase, I focused on two main aspects: citizens compared to other citizens First, to set on track the research always has to be justified in the light of processes for several experimental equality and antidiscrimination princi- studies. Second, to choose a topic for ples. While the classification of people my legal habilitation thesis. The reason and the consequences of personalized for prioritizing empirical work in the first rules are often discussed in relation to years stems from my experience that applications of machine-learning in the empirical projects take time. I therefore legal arena, this project assumes that wanted to get these projects started as the underlying problem is not a new one. early as possible in order to increase I presume (and will try to show this in the chance of completion/publication the thesis) that the law already consid- during my time at the MPI. This, of ers people’s heterogeneity at different course, also implies that the focus stages and, hence, treats them differ- will have to shift continuously from ently/allows for differential treatment.

173 D. Research Portraits

With Langenbach (2019), I contributed In my experimental work, I do not legal and administrative contexts. More a chapter – on the constitutional duty restrict myself to research questions specifically, we study how people judge to protect – to a book edited by Dieter from the field of public law. Hence, I decisions of the police, school boards, Grimm. The chapter studies how innova- also conducted two experiments which and immigration authorities when these tions in the jurisprudence of the Federal study research questions from civil decisions have been prepared to varying Constitutional Court have been prepared law and criminal law/criminology. degrees by computerized decision aids. in constitutional legal scholarship. We ran the study in the summer of 2020. Together with Christoph Engel and some Baumann, Friehe, and Langenbach postdocs from the Behavioral Law and (2020) reports that the threat of The second study, Langenbach and Economics Group, we will edit a book on damages to be paid to the victim of Schneider (work in progress), also uses the behavioral analysis of public law. I an accident leads to a higher amount online vignettes to assess whether will contribute a chapter on the behav- of investment in accident prevention the way through which a case reaches ioral economic analysis of fundamental than the threat of a fine of equal size. an international human rights court rights (Engel et al., work in progress). We relate this finding to behavioral matters for the effect this court’s ruling theory, especially to inequity aversion. might have on public opinion about the On the legal experimental side, I am policy issue at hand. Specifically, we interested in the behavioral effects of In Friehe, Langenbach, and Mungan study whether it matters that a case democratic decision-making. In Lan- (2020), we challenge the conjecture reaches the European Court of Human genbach and Tausch (2019), we study that learning about the detection Rights through one’s own legal system whether the cooperation-enhancing probability can be separated from the – that is, the European Court might effect of direct-democratic procedures sanction severity. In our laboratory explicitly contradict my own domestic in the present generation also extends experiment, subjects receive a signal highest court – or through another to future generations in which no dem- about the detection probability for member state’s legal system – that ocratic decision takes place. We find an misbehavior. We find that – despite is, the European Court contradicts the asymmetrical effect: while the coopera- its theoretical irrelevance – the level highest court of another country. Data tive effect of the democratic adoption of of sanction severity influences how was collected in the fall of 2020. a cooperation-enhancing rule vanishes subjects process the signal about the in a future generation, the anti-coop- detection probability if the sanction erative effect of the democratic re- has been previously administered. Publications jection of the same rule persists over generations. One interpretation might My empirical work applies mainly to the Articles in Peer-Reviewed Journals be that democratic laws are in need of methodology of experimental law and Langenbach, P. and Tausch, F. (2019). Inher- constant democratic legitimation to economics. For many legal questions, ited Institutions: Cooperation in the Light of produce additional behavioral effects. however, other experimental approach- Democratic Legitimacy. The Journal of Law, es arguably also seem promising. This Economics, and Organization, 35(2), 364–393. The reported study adds to the em- is especially true for online vignette Kleine, M., Langenbach, P. and Zhurakhovska, pirical literature which studies the experiments, as they allow one to add L. (2017). How Voice Shapes Reactions to Impartial Decision-Makers: An Experiment on a lot of “legal” context to the situation behavioral effects of direct-democratic Participation Procedures. Journal of Econom- decision-making. While the basic effect and can therefore heighten the exter- ic Behavior & Organization, 143, 241–253. that direct-democratic decision-making nal validity of the findings and ease enhances immediate cooperation has the application of experimental results Book been replicated in several experimen- in legal scholarship. The decision to tal studies, the behavioral effects of broaden my methodological toolbox Langenbach, P. (2017). Der Anhörungseffekt: participation in representative demo- was also enforced by the contact I had Verfahrensfairness und Rechtsbefolgung im allgemeinen Verwaltungsverfahren, III, 268 p. cratic procedures have received much with the joint empirical work by legal Tübingen: Mohr Siebeck. less attention. The few studies looking scholars and political scientists at the at cooperative effects of democratic EUI in Florence. Therefore, I am cur- representation report mixed results. In rently running two experimental studies Book Chapter Langenbach and Verrina (work in prog- which make use of online vignettes. Langenbach, P. (2019). Die grundrechtliche ress), we will try to produce experimen- Schutzpflicht: Das Fristenlösung-Urteil. In: Grimm, D. (Ed.), Vorbereiter – Nachbereiter. tal evidence on the cooperation-enhanc- The first of these studies, Langenbach Studien zum Verhältnis von Verfassungsrecht- ing effect of representative democratic and Hermstrüwer (work in progress) sprechung und Verfassungsrechtswissen- decision-making. The experiment is looks at how people feel about the schaft, 161–191. Tübingen: Mohr Siebeck. scheduled to be conducted in late 2020. algorithmic decision aids used in several

174 Working Papers Fines vs. Liability: Experimental Evidence on Reviewer for Care Incentives Baumann, F., Friehe, T. and Langenbach, P. 29th Annual Meeting of the American Law and Journal of Economic Behavior & Organization, (2020). Fines versus Damages: Experimental Economics Association (ALEA), NYU School Review of Law and Economics Evidence on Care Investments. MPI Collective of Law Volkswagen Foundation Goods, Discussion Paper 2020/8. May 2019 Friehe, T., Langenbach, P. and Mungan, M. C., Sanctions Severity Influences Learning About Fines vs. Liability: Experimental Evidence on Enforcement Policy. Care Incentives Seminar, Department of Economics, Universi- ty of Bologna October 2019 Work in Progress

Engel, C., Egidy, S., Hermstrüwer, Y., Hoeft, L., Langenbach, P., O’Hara, L. (Eds.), Ver 2020 haltenswissenschaftliche Analyse des öffent lichen Rechts. Sanction Severity Influences Learning About Hermstrüwer, Y. and Langenbach, P. Govern- Enforcement Policy: Experimental Evidence ing with Humans and Machines: An Experi- Kolloquium Recht & Ökonomie, Universität mental Investigation. Bonn May 2020 Langenbach, P. and Schneider, C. The Authority of Courts and Public Opinion: An Experiment. Teaching Langenbach, P. and Verrina, E. Solving Social Dilemmas through Elected Policy Makers. September 2018 Workshop: Einführung in die empirische Rechtsforschung [Introduction to Empirical Legal Studies] Prizes and Honors Gesellschaftswissenschaftliches Kolleg, German National Academic Foundation 2020–2025 Summer term 2020 Allgemeine Staatslehre Elected Member of the Junge Akademie [Theory of the State] (Young Academy) at the Berlin-Brandenburg University of Osnabrück Academy of Sciences and Humanities, and of the German National Academy of Sciences Leopoldina Public Service 2018 Member of Selection Committees for the German National Academic Foundation Otto Hahn Medal 2017 of the Max Planck Society for the legal doctoral thesis Member of the Works Council of the Max Planck Institute for Research on Collective 2017 Goods

Grants from the Konrad Redeker Foundation and the Johanna and Fritz Buch Foundation for the publication of the legal dissertation Professional Activities

Memberships Lectures and Presentations Member of the American Law and Economics (since 2017) Association Member of the European Association of Law 2019 and Economics

Democratic Legitimacy and the Effectiveness Member of the Young Academy at the of Legal Ordering: Experimental Evidence Berlin-Brandenburg Academy of Sciences and Perspectives and Humanities, and the German National Inaugural Conference of the German Chapter Academy of Sciences Leopoldina of ICON-S, Humboldt-University Berlin March 2019

175 D. Research Portraits

176 Lisa Lenz

Summary Report  the impact of social preferences, status group, norms, and social dy- I joined the institute as a guest re- namics on individual decisions and searcher in October 2016. Currently I the underlying processes (Granovet- am a PhD student at the University of ter, 1985). Cologne and the Cologne Graduate School in Management, Economics, In my work, I account for this critique by and Social Science. I have successfully addressing the questions how different completed the International Max Planck structures of interpersonal relations Research School on Adapting Behavior influence prosocial preferences, beliefs in a Fundamentally Uncertain World. about characteristics, and the behavior of others, as well as prosocial behavior Prior to my time at the Max Planck in distinct decision-making environ- institute, I completed my Bachelor ments in three different projects: in corporate management and economics at the Zeppelin University in A Theory of Strategic Discrimination Friedrichshafen and my Master’s in (Working Paper) economics at the University of Bonn. This is the first paper to study – theoret- During my time as a PhD student, I ically as well as experimentally – dis- studied the influence of varying social criminatory behavior of decision-makers, contexts through lab experiments as triggered by the embeddedness in social well as lab-in-the-field experiments. environments of interpersonal relations. In particular, we show that discriminatory behavior in embedded contexts can Current Research Projects appear even if the decision-maker has no taste for discrimination or any reason My main research interest lies in the to discriminate statistically for three examination of how social contexts and different reasons: the decision-maker the embeddedness in groups of interper- has altruistic feelings towards existing sonal relations affect prosocial behavior, team members and enhances the utility beliefs, and (social) preferences of de- of the other team members by selecting cision-makers. Ever since the marginal their preferred candidates; she antic- revolution in economics in the 1870s, ipates a taste-based discrimination traditional microeconomic models of de- of the other team members; and she cision-making are based on the assump- wants to trigger reciprocal behavior by tion that people’s behavior can be ex- signaling that she cares for the pref- plained by atomistic Robinson Crusoes erences of her other team mates. We making rational choices based on their test the different behavioral channels stable preferences and constrained en- in a public-goods game, in which we tirely by prices and incomes. In light of allow for endogenous team formation. this radical simplification of human nature, representatives of neighboring so- The Effect of Inclusive Policies on cial sciences and behavioral economists Economic Types of Discrimination raise serious concerns that this neglec- (Working Paper) tion of embeddedness in social relations comes at the price of underestimating Inclusive social policies have been found to increase and to decrease prej-  the importance of how the structure udice and discrimination in field-experi- of social relations determines the mental studies. These conflicting results search process for valid information; might stem from the preferences and

177 D. Research Portraits

beliefs of the individuals put into contact Teaching with the outgroups – that is, whether Winter term 2018 discrimination is based on taste or on Lecturer, Bachelor Seminar on Corporate statistics – as well as on the quality and Development features of the implemented policy. This University of Cologne article investigates the causal effect of Summer term 2019 inclusive social policies on taste-based, Co-lecturer, Tutorial Sessions, Corporate anticipated taste-based, and statistical Development discrimination. Lessons for policy-mak- University of Cologne ers concerned with the reduction of dis- Winter term 2019 crimination involve the features that in- Co-lecturer, Strategic Human Resources clusive policies should strive for, as well Management as the individuals who might respond to University of Cologne the contact by changing preferences or Summer term 2020 beliefs, thus reducing discrimination. Co-lecturer, Incentives in Organization University of Cologne Guilt in Multi-Agent Games (under Summer term 2020 Revision) Lectures, Master’s Seminar on Human Resources Management Guilt aversion defined as the desire not University of Cologne to betray the expectations of others can 2018–2020 substantially induce prosocial behavior. Supervision of various Bachelor and Master’s However, this is the first study to investi- Theses gate systematically whether agents will University of Cologne experience guilt less severely (Charness and Dufwenberg, 2006) in settings with more than two people, and if so, why. I distinguish between four different behavioral explanations and their relative importance: first, an agent may weigh the loss inflicted on a single person less gravely in multi-agent settings. Second, deviations from other people’s expectations are associated with less disutility if individual decisions are less attribut- able. Third, economic agents may free- ride on the prosocial behavior of others. Fourth, decision-makers might experience less guilt in multi-agent settings if they anticipate the former three effects. Overall, I find a significant decline in prosocial behavior in multi-agent settings. Determining the relative importance of different channels, I find that the relaxation of the attributability of actions is the most important channel, explaining around 60% of the difference in prosociality in small group settings.

178 Fedor Levin

Summary Report between memory and decision-making in older age. The article on this study I have worked at the Max Planck Insti- was published in 2018 in the journal tute for Research on Collective Goods Aging, Neuropsychology, and Cognition. as part of my PhD studies with the MaxNetAging Research School. The Following that project, we worked on a program started in February 2016 with study testing the theorized influence of a six-month initial training period at the positivity effect on decision-making in Max Planck Institute for Demograph- older age (“Positivity Effect and Deci- ic Research in Rostock, continued in sion-Making in Aging”). The positivity August 2016 at the Max Planck Institute effect refers to an age-related difference for Research on Collective Goods, and in processing information with emotion- finished in January 2019. Currently I am al valence. According to socioemotional not at the institute, but I am finishing selectivity theory, the positivity effect the remaining projects. My research represents not an age-related decline Contact focused on changes in value-based de- in cognitive performance, but rather cision-making in older age and on possi- a change in a manner in which older [email protected] ble links between aging-related changes adults direct their cognitive functions in cognitive functioning and decision in decision situations. Several studies processes. More specifically, I investi- have assessed the contribution of the gated contributions of three age-related positivity effect to information search effects to decision-making – an influ- and also to subjective decision satis- ence of a decline of episodic memory on faction in decision-making. However, value-based decision-making, a possible the likely impact of the positivity effect contribution of age-related positivity on the decision quality has not been effect to a bias in information search, systematically addressed by prior and a potential benefit of episodic future research. To investigate the positivity thinking for decisions of older adults. effect in decision-making with sufficient statistical power, we designed an In 2016 and 2017, together with Susann online study comparing a group of older Fiedler and Bernd Weber, I worked on adults to a group of younger adults. The a study addressing the relationship participants completed a task in which between an age-related decrease in they made decisions about donating episodic memory performance and to various charities. We conducted this value-based decision-making (“The study in a format of a registered report – Influence of Episodic Memory Decline we first submitted a stage 1 manuscript on Value-Based Choice”). Previous re- outlining the rationale for the study and search established the role of long-term the planned procedure to the journal declarative memory in the construction Cognition and Emotion. After a thorough of subjective values of choice options. peer-review process and a revision Aging can lead to a decrease in mem- of the stage 1 report, the submission ory performance in some older adults; was granted a status of in-principle however, the impact of this decline acceptance. Following that, we collect- on value-based decision-making has ed and analyzed the data. Contrary to not been conclusively established. To the previous research on this topic, we study this effect, we conducted a study did not find support for the age-related in 2017 with a group of older adults, positivity effect, and both age groups – testing their performance in a series of older and younger adults – on average cognitive tests, as well as in a decision demonstrated a positivity bias. The task using food choice as a model of measure of an information search bias value-based decisions. Overall, the which indicated the degree of deviation findings supported the hypothesized link from an even-handed review of positive

179 D. Research Portraits

and negative information did not predict of our task on food choice. This work decision quality. However, we confirmed extends previous research on episodic the expected link between a higher future thinking in older adults and offers positivity bias and a higher decision future directions for research, such as satisfaction. The findings of this study an investigation of the factors that modi- suggest the need for future research to fy the effect of episodic future thinking re-examine previous assumptions about on behavior with health outcomes. the specific conditions under which the positivity effect manifests itself in decision contexts. Currently, I am working on Publications (since 2017) a revision of a stage 2 registered report which includes the previously submit- Articles in Peer-Reviewed Journals ted introduction and method parts, as Levin, F., Fiedler, S. and Weber, B. (Registered well as added results and discussion. Report in principle acceptance). Positivity Effect and Decision Making in Ageing. Cogni- Another project on which I started work- tion and Emotion. ing with Bernd Weber in 2018 is focused Levin, F., Fiedler, S. and Weber, B. (2018). The on a role of episodic future thinking in Influence of Episodic Memory Decline on Value-Based Choice. Aging, Neuropsychology, the decision-making of older adults. This and Cognition, 26(4), 599-620. cognitive function is similar to episodic memory. It allows us to imagine specific episodic events in the future and thus contributes to planning and prospec- Work in Progress tion. Previous research has shown that Levin, F. and Weber, B., Episodic Future Think- episodic future thinking also changes ing and Decisions in Aging. how people consider future rewards, for example by promoting more future-oriented choices in delay discounting tasks and in decisions with health-related outcomes. Therefore, episodic future thinking could be leveraged as part of a potential intervention in older age aimed at supporting adherence to a healthy lifestyle. However, there has been mixed evidence with regard to whether older adults can benefit from episodic future thinking. Therefore, in this study, I aimed to test whether episodic future thinking would decrease the rates of delay discounting in older adults and whether it would increase the likelihood of selecting healthier food items. An online study was designed to compare decisions of older adults engaged in an episodic future thinking to a control group in which the older adults engaged in an episodic recent thinking task. The results provided evidence for a pre- served ability of older adults to engage in episodic future thinking, as well as its effect on delay discounting, thus indicating the likely benefit of interventions aimed at promoting episodic future thinking in older adults. However, we did not observe the hypothesized effect

180 Mengyao Li

Summary Report well as contextual factors in tandem, in order to understand morally courageous Three basic questions drive my re- behavior (Li, Sasse, Halmburger, and search. First, why does group-based Baumert, under review). violence tend to spread and perpetuate In a similar attempt to integrate diver- itself? Second, how do violence and gent literatures on moral courage, I other moral transgressions impact the served as a guest editor (with Anna Bau- parties involved? Third, what are the mert, Julia Sasse, and Linda Skitka) for constructive ways to respond to moral the special issue of the Journal of Exper- transgressions? I have examined these imental Social Psychology, “Standing Up questions in various intergroup contexts, Against Moral Transgressions: Psycho- using different theoretical and method- logical Processes of Moral Courage”. In ological approaches. My work explores our editorial, we highlighted the insights both individual-difference and contex- gained from integrating research that tual factors in intergroup processes. To examines morally courageous behavior Contact achieve a comprehensive understand- from different perspectives, proposing ing of moral transgressions and moral directions for future research (Bau- [email protected] repair, my research also aims to take mert, Li, Sasse, and Skitka, 2020). a 360-degree approach, where victim, https://www.coll.mpg.de/mengyao-li perpetrator, and third-party (bystander) Psychological Consequences of perspectives are examined in tandem. Harmful Normative Change I joined the institute as a Senior Re- search Fellow in June 2017. Over the When faced with information that past three years, I have carried out challenges the ingroup’s morality, group several research projects addressing members respond in various ways: from a variety of research questions related denial to moral disengagement to moral to group-based violence and moral condemnation. Little is known, however, transgressions. My research uses about how people react when ingroup different methodological approaches, transgressions are increasing, thus sig- including correlational and experimental naling a change in the group norm. designs, and online and field studies. In three experiments, I examined how Americans responded to news reports An Integrative Framework of describing anti-Muslim (Studies 1 and Moral Courage 2) and anti-Hispanic (Study 3) discrimination as having either increased or Moral courage, or acting against per- remained largely unchanged (with Anna ceived moral transgressions despite Baumert, Aya Adra, and Fabian Winter). personal risks, is an important social We found that high (but not low) U.S. force that shapes the functioning of hu- glorifiers perceived a stronger future man societies. With Anna Baumert and pro-discrimination norm after learning Julia Sasse, we conducted a systematic about the increasing than the static past review of literatures that were previously trend, which in turn positively predicted disconnected, but offer collective in- moral justification of discrimination and sights into behavior that can be viewed perceived moral identity threat. Again, as morally courageous (e.g., anti-bul- among high (but not low) glorifiers, lying intervention, whistleblowing, moral justification further positively high-risk collective action). Based on predicted support for anti-Muslim and this review, we developed an integrative anti-Hispanic policies, whereas moral model of moral courage, highlighting identity threat negatively predicted the importance of considering individual support for these policies. Interestingly, attitudes and beliefs, moral emotions, identity threat also positively predicted relational and group-level processes, as behavioral support (e.g., donations to

181 D. Research Portraits

Muslim or Hispanic advocacy organi- an overwhelming focus on normative, Publications (since 2017) zations) for the two minority groups. non-violent actions of resistance. These findings illuminate two diver- In one line of research, I investigate the Articles in Peer-Reviewed Journals gent reactions to increasing ingroup psychological processes underlying po- †Shared first authorship,* Supervised PhD transgressions among high glorifiers: litical resistance, with a particular focus student on radical or even violent resistance in an ingroup-defensive one via moral Li, M., Leidner, B., Petrović, N. and Prelic, N. justification, with largely negative inter- relatively repressive contexts (with Anna (2020). Close or Distant Past? The Role of group outcomes, and a non-defensive Baumert, Aya Adra, and international Temporal Distance in Responses to Inter- one, via perceived moral identity threat, collaborators). So far, we have collect- group Violence from Victim and Perpetrator Perspectives. Personality and Social Psychol- ed and are preparing to collect data in with positive intergroup outcomes. ogy Bulletin. the contexts of three different social † † † National Identification and movements in Hong Kong, Chile, and Baumert, A. , Li, M. , Sasse, J. and Skitka, L. (2020). Standing up Against Moral Violations: International Conflict Resolution Lebanon, respectively. This project has Psychological Processes of Moral Courage. two main goals. First, we examined the Journal of Experimental Social Psychology, As a continuation of my PhD work various motivations underlying actual 88, 1-3. on the role of social identity in inter- engagement in radical (versus non-rad- Adra, A.†, Li, M. and Baumert, A. (2020). What group conflicts, in this research I take ical) acts of resistance. We tested four They Think of Us: Meta-Beliefs and Solidari- a cross-national approach to examine different hypotheses: radical resistance ty-Based Collective Action Among the Advan- taged. European Journal of Social Psychology. the generalizability of a bi-dimensional might be driven by 1) demands for retrib- model of national identification, as well utive justice as a response to police vio- Li, M., Leidner, B. and Fernandez-Campos, S. (2020). Stepping into Perpetrators’ Shoes: as its divergent implications for inter- lence (“retributive violence” hypothesis); How Ingroup Transgressions and Victimiza- national conflict resolution (with Anna 2) perceived low efficacy of non-violent tion Shape Support for Retributive Justice Baumert and international collaborators; actions and loss of hope (“nothing-to- through Perspective-Taking with Perpetrators. Li, Watkins, et al., under review). We lose” hypothesis); 3) perceived efficacy Personality and Social Psychology Bulletin, 46(3), 424–438. tested whether national glorification of violence in achieving certain move- and attachment differentially predict- ment goals (“strategic violence” hypoth- Adra, A.*, Harb, C., Li, M. and Baumert, A. ed support for military and diplomatic esis); and 4) the perception that violence (2019). Predicting Collective Action Tenden- cies Among Filipina Domestic Workers in conflict resolution strategies (CRS) against repression is morally righteous Lebanon: Integrating the Social Identity Mod- in response to international conflicts. (“moralization” hypothesis). The second el of Collective Action and the Role of Fear. Based on tests of the measurement goal of the research is to investigate the Group Processes and Intergroup Relations, 23, invariance (MI) of the national identifica- relationship among government repres- 967-978. tion scales in seven countries (Australia, sion, cognitive and emotional appraisals Li, M., Leidner, B., Petrović, N., Orazani, S. N. United States, United Kingdom, France, of risks, and political resistance. and Rad, M. S. (2018). The Role of Retributive Justice and the Use of International Criminal Germany, Israel, China), we investigated During my recent research visit at the Tribunals in Post‐Conflict Reconciliation. whether these relationships were gener- University of Illinois at Chicago, I started European Journal of Social Psychology, 48(2), alizable across countries. Our study was a research project (with Linda Skitka) O133–O151. [Winner of EJSP Early Career the first to scrutinize the cross-cultural looking at how different futurist thinking Best Article Award 2018] generalizability of the bi-dimensional influences modes of political engage- model of national identification. ment and resistance. A growing body Book of research has explored the role of Leidner, B., Tropp, L., Lickel, B. and Li, The Psychology of Political Resistance futurist thinking on social cognition and M. (forthcoming). Political Psycholo- behavior. Envisioning a desired, ideal gy of Groups. In O. Feldman & S. Zmerli Recent years have witnessed unprec- future society, for example, has been (Eds.), Politische Psychologie: Handbuch für edented global waves of social and argued to motivate actions for social Studium und Wissenschaft (Political Psychol- ogy: Handbook for Study and Science). Baden- political unrest. The upsurge in the scale change (e.g., Badaan, Jost, Fernando Baden, Germany: Nomos. and intensity of protests has also been and Kashima, 2020). In this project, paralleled by the increasing diversity we compare the psychological and and creativity in how people engage in behavioral consequences of engaging Book Chapter contentious politics. This global trend in utopian versus dystopian thinking Li, M. and Leidner, B. (2019). Understanding has attracted growing scholarly inter- about the future of a social movement. Intergroup Violence and Its Aftermath from Perpetrator and Victim Perspectives. In: L. est from social scientists and political Importantly, we again aim to distinguish Newman (Ed.), Confronting Humanity at its analysts. The empirical research on between different types of actions, Worst: Social Psychological Perspectives on political resistance, however, has thus including normative, non-radical actions, Genocide. New York: Oxford University Press. far been conducted almost exclusively and non-normative, radical actions. in democratic and liberal societies with

182 Edited Volume Lectures and Presentations 2020 Baumert, A., Li, M., Sasse, J. and Skitka, L. (since 2017) National Glorification and Attachment: A (Eds.) (2020). Standing Up Against Moral Multi-country Assessment of Measurement Transgressions: Psychological Processes 2018 Invariance and Their Divergent Implications of Moral Courage. Journal of Experimental for Conflict Resolution (with Watkins, M. H., Social Psychology. [special issue] Glorification, Collective Harm-Doing, and Allard, A., Hirschberger, G., Kretchner, M., Emotional Well-Being from the Perspective Leidner, B. and Baumert, A.) of Perpetrator Group Members (with Leidner, Conflict and Conflict Resolution Preconfer- Under Review B.) ence of the Annual Meeting of the Society Li, M., Watkins, M. H., Allard, A., Hirschberger, Paper presented at the Annual Meeting of the for Personality and Social Psychology, New G., Kretchner, M., Leidner, B. and Baumert, European Conference on Personality, Zadar, Orleans, LA, USA A. (under review). National Glorification and Croatia February 2020 Attachment Differentially Predict Support for July 2018 Intergroup Conflict Resolution: Scrutinizing The Cycles of Intergroup Violence: A Social Cross-Country Generalizability. Close or Distant Past? The Role of Tempo- Psychological Perspective on Group-Based ral Distance in Responses to Justice and Violence and its Potential Remedies (invited Li, M., Sasse, J., Halmburger, A. and Baumert, Reconciliation from Victim and Perpetrator talk) A. (under review). Standing Up Against Moral Perspectives (with Leidner, B., Petrović and Peace Research Institute Frankfurt, Germany Transgressions: An Integrative Perspective Prelic, N.) February 2020 on the Psychological Processes of Moral Paper presented at the Annual Meeting of Courage. the 51st DGPs Congress, Frankfurt am Main, Political Resistance and Radicalization under McLamore, Q., Leidner, B., Hirschberger, G. Germany Repression: Evidence from the Hong Kong and Li, M. (under review). To Defend or Not September 2018 Anti-ELAB Movement (invited talk) Defend? Reconciling When Low Glorifiers Are Brown Bag Talk at the Department of Psy- Defensive or Non-Defensive of Ingroup-Com- Social Psychological Perspective on the Ris- chology, University of Illinois at Chicago, IL, mitted Violence. ing Attractiveness of Populist and Excluding USA Movements (invited talk) March 2020, postponed Watkins, M. H., Allard, A., Li, M. and Leidner, B. Panelist in the workshop on Understanding (under review). The Effect of War Commemo- Current Challenges to Europe and Western Understanding Violent and Non-Violent rations on Support for Diplomacy: A Five-Na- Societies, Heidelberg, Germany Political Resistance under Repression – tion Study. October 2018 Evidence from the Hong Kong Anti-ELAB movement (with Yuen, S., Adra, A., Chan, 2019 K-M. and Baumert, A.) In Preparation Annual Conference of the International Soci- Temporal Stability and Change in National ety for Justice Research, Lisbon, Portugal Li, M., Leidner, B., Hirschberger, G. and Park, July 2020, postponed J. (invited submission). From Threat to Chal- Glorification (invited talk) lenge: Understanding the Impact of Historical Psychology Colloquium at University of Ko- Collective Trauma on Contemporary Inter- blenz and Landau, Landau, Germany group Conflict. January 2019 Organized Symposia

Li, M., Leidner, B. and Petrović, N. (in prep.). When Victims Demand Justice: How Perpe- Changes in Attitudes Toward the Internation- trator Group Members Respond to Victims’ Challenges and Advances in Research on al Tribunal for the Former Yugoslavia from Different Justice Demands (with Leidner, B.) Intergroup Violence 2004 to 2011: A Case Study of Serbia Using Justice and Morality Preconference of the Annual Meeting of the Society for Personality Secondary Data. Annual Meeting of the Society for Personality and Social Psychology, Atlanta, GA, USA and Social Psychology, Portland, OR, USA Speakers: Mina Cikara, Roger Giner-Sorolla, Li, M. and Leidner, B. (in prep.). When Victims February 2019 Mengyao Li, Rebecca Littman Demand Justice: How Perpetrator Group March 2018 Members Respond to Victims’ Retributive State of Art Session on Moral Courage (with Versus Restorative Justice Demand. A. Baumert) (invited talk) 15th Conference of Personality and Psy- Professional Activities chological Assessment (DPPD), Dresden, Germany Awards (since 2017) Memberships September 2019 Early Career Best Manuscript Award 2018, European Association of Social Psychology, European Journal of Social Psychology National Glorification and Attachment: A Society for Personality and Social Psychology Multi-country Assessment of Measurement Funded Research in Progress Invariance and Their Divergent Implications “The Persuasiveness of Strategic Science for Conflict Resolution (with Watkins, M. H., Ad-hoc Reviewer for Communication on Compliance with Scientif- Allard, A., Hirschberger, G., Kretchner, M., ic Recommendations across Nations during Leidner, B. and Baumert, A.) Personality and Social Psychology Bulletin, the COVID-19 Pandemic” 15th Conference of Personality and Psy- European Journal of Social Psychology, PLOS One, Group Processes and Intergroup Rela- Collaborator (research and writ- chological Assessment (DPPD), Dresden, tions, Peace and Conflict: Journal of Peace ing of the proposal), rapid grant from Germany Psychology, Journal of Social and Political the U.S. National Science Foundation September 2019 Psychology, Psychological Reports, Social April, 2020 – now

183 D. Research Portraits

Psychology, Personality and Individual Differ- ences, Social Psychological and Personality Science, Routledge Handbook of Dehuman- ization

184 Nathan Maddix

Summary Report tantly, while individual difference measures predict policy preferences, they I joined the institute in December 2017 may not predict behavior, which has con- after working and studying at Harvard sequences for both law and economics. University. I was a lab manager at the Harvard Business School, and I came Previous research has found that to Max Planck because I found it to humans organize financial categories be a unique opportunity to expand my by ‘mental accounts’ that allow them to horizons while continuing research create rules for spending and saving. In I had started on financial decisions, Maddix and Del Ponte (work in prog- household finance, nudging, and ress), we conduct online experimental preference formation, especially policy research with an interactive savings preferences. Thanks to the MPI, my game that simulates real-world behavior research interests are now even wider in which we randomly vary the pay struc- and include large-scale field experi- ture of workers. Over multiple periods Contact ments, individual and team behavior, and with panel data, we are now analyzing behavioral and experimental modeling. how individuals, especially low-income [email protected] In particular, I am interested in topics individuals, may smooth spending over such as goal-setting, planning, and time, and how economic shocks (e.g., https://www.coll.mpg.de/nathan-maddix self-control in field and lab settings. low wages or windfall gains) may cause agents to learn whether or not optimally Lab and Online Experiments to save or spend in hard times. This has implications for financial educa- Many experiments with convenience tion as well as economic downturns, and representative samples were con- such as the 2020 global pandemic. ducted to understand the relationship between choices and individual behavior Finally, related to financial decision-mak- with respect to policy preferences. The ing, Maddix (2020b) conducts a large- term “nudging” refers to a policy tool scale online study for how choice that makes subtle changes to a choice formats influence decision-making for environment to improve outcomes for important life choices, conditional on citizens. While many have investigated domain-specific expertise. The moti- policy preferences for nudges across vating question is, which choice format domains, such as health, energy, and leads to better decision-making for financial domains, no one to date has experts and non-experts in health, finan- conducted an in-depth analysis of one cial, and energy domains? What can we domain. In a representative sample of learn about optimal default choices? To U.S. households, Maddix (2019) inves- explore this question fully, individuals tigates the financial domain to report make multiple choices, randomized to findings on how individuals vary with one of four choice formats in each do- respect to their approval for public poli- main. In each choice, they must decide cies that make use of financial nudges, whether to take up a program or benefit such as credit-card spending, automatic offered by the workplace or government, enrollments in financial programs, and or whether instead to “switch out” of financial education at the workplace. By the program. They then must decide collecting data on time and risk preferences along with risk attitudes for each whether or not to give this program policy choice, Maddix (2020) shows the to someone else. Findings reveal relationship between individual differ- that information improves uptake for ences and policy preferences. Impor- both default and active choices.

185 D. Research Portraits

Field Experiments ioral economics by focusing on how Indebted Savers: Focusing Illusions and tournaments, incentives, and self-re- Optimism Biases for Debt and Savings Geary Institute Behavioural Science and Pub- Field experiments provide important wards can motivate task completion at lic Policy Annual Workshop. Dublin, Ireland contributions to economic science home, while reporting how employees 29–30 November 2018 because they can identify clean causal experience self-control problems. relationships. In a field research project with the World Health Organization and colleagues at Harvard School of Publications (since 2017) Public Health, Maddix and Rees (work in progress) design and implement an Articles in Peer-Reviewed Journals eight-week smoking prevention pro- Maddix, N. (forthcoming). Behavior by gram for approximately 750 students in Spending More on Consumer Debt. Harvard Montenegro. Montenegro has one of the Law Review. highest rates of smoking in Europe. The study measures how implementation plans can lead to positive outcomes Working Papers for students in relation to their smoking Maddix, N. (2020b). Opt-out Defaults and and financial habits. The link between Active Choices: Choice Format, Domain smoking and finances for children in Expertise, and Projective Paternalism. Montenegro is that we estimate that the Maddix, N. (2020a). Do Individual Difference average smoker spends the equivalent Measures Predict Policy Preferences for of one day’s work (seven hours) each Financial Nudges? week on the costs of cigarettes. By Maddix, N. (2019). Financial Nudges for Sav- using behavioral-science strategies with ings, Bill Payment, and Repayment: Evidence economic games, I identify how behav- from the United States. ioral science can improve personal outcomes and estimate the effectiveness of known goal-setting and achievement Work in Progress strategies using economic measures. Maddix, N. (In progress). Welfare Effects of Work from Home Wellness Programs: Evi- Much of my research focuses on goal dence from the Technology Sector. completion and effort. It has been Maddix, N. and Rees, V. (In progress). Using argued that industrialization led to Behavioral Insights to Prevent Smoking in economic gains in part because the Adolescents Aged 13-15. principal-agent relationship with firms Maddix, N. and Del Ponte. (In progress). eliminated self-control problems for Learning in Savings Decisions: Evidence from an Online Sample. workers who may get distracted or lose focus. As the global pandemic took hold, Maddix (work in progress) started investigating the economic and psycho- Lectures and Presentations logical effects of working from home (since 2017) with incentives and wellness programs. Corporations make use of wellness pro- 2018 grams to offset employee costs related to absenteeism, turnover, and health Student Smoking Preferences: Experimen- tal Evidence from Empowerment Training issues such as diabetes and heart Programs attack. In partnership with a firm that BEHNET Behavioral Economics in Health Net- tracks endogenous behavior by means work, Summer School. University of Cologne of a task manager phone application Summer 2018 in the United States, I experimentally Indebted Savers: Focusing Illusions and manipulate rewards and incentives for Optimism Biases for Debt and Savings at-home workers to model self-control Society for Judgment and Decision Making and effort under incentive regimes. This Annual Meeting. New Orleans, Louisiana 16–19 November 2018 field-research study makes a contribution to both experimental and behav-

186 Sofia Monteiro

Overview the MPI Decision Lab, team members could chat to their partner to reach I joined the institute on 1 October 2017. an agreement. From the literature, we Prior to joining the EEG group, I held expected team decision-making to be positions at the University of Cape Town closer to rational beliefs than individual and with the Southern Africa Labour decision-making. We used a single be- and Development Research Unit. My lief-formation task as a proxy for naivety research in the past years has focused of individuals to account for hetero- on two main topics: (i) cognitive biases geneity within teams. Contrary to our in belief formation; (ii) behavioral inter- hypothesis, we found that teams exhibit ventions for healthier decision-making. the same pattern of correlation neglect in belief formation as individuals. This Cognitive Biases in Belief Formation experiment is in the writing-up phase.

Information structures are widely In news and social media, information Contact characterized by correlated signals, for is curated into clickbait headlines and example news media that share infor- affecting tweets that support a particu- [email protected] mation sources, such as press agencies, lar interest group. The fact that we face so that the contents of different news selected data, which is framed to tell a https://www.coll.mpg.de/sofia-monteiro reports tend to be correlated. Previously, particular story, often one that agrees Enke and Zimmerman (2019) provided with our prior expressed beliefs, is not experimental evidence with students in immediately apparent to the consumer. the lab on the existence of correlation Enke (2019) demonstrated the existence neglect by individuals when forming of selection neglect in belief forma- beliefs from information sources in a tion and evidence for the mechanism transparent setting. They provided sug- underlying it; a heuristic prompted by gestive evidence that naive beliefs are cognitive load he terms “what you see is not driven by inadequate computational all there is”. His experimental research skills necessary to process correlated highlighted two distinct types which information. Instead, subjects showed characterized a majority of participants conceptual problems in identifying and in the lab: the full neglect type and the thinking through the correlation in the Bayesian updater. Practically, a means first place. The authors had limited of debiasing individuals remained un- success in debiasing beliefs. Praxmarer, clear. Representation training has been Monteiro, and Sutter (work in progress) shown to be intuitive (even for children) tested whether team decision-making and to improve Bayesian reasoning in could debias beliefs. This intervention basic problems of conditional proba- had straightforward policy implications bility. Previous research on this type of (i.e., when to implement team deci- representation training has been limited sion-making) for settings and organiza- to non-incentivized psychological stud- tions where individuals tend to exhibit ies (e.g., Hoffrage, Krauss, Martignon, correlation neglect (e.g., social network and Gigerenzer, 2015). In an online learning, forecasting, and news gather- experiment, Monteiro (work in progress) ing). We also contributed to the growing brings these two literatures together literature on team decision-making (for to test whether representation training a review, see Kocher, Praxmarer, and increases the proportion of Bayesian Sutter, 2020). We examined wheth- updaters in a setting in which individuals er team decision-making generates typically exhibit selection neglect. This more rational beliefs in settings where experiment is in the design phase. individuals tend to exhibit substantial correlation neglect. In our experiment at

187 D. Research Portraits

Behavioral Interventions for education program to empower women The Prince and the Pauper: The Effect of Healthier Decision-Making and their families and the influence of Inherited Wealth Status on Productivity in the Lab food insecurity on household nutrition. School of Economics Seminar, University of The burden of non-communicable My aim is to identify behavioral insights Cape Town, South Africa, diseases such as diabetes is a growing to help people navigate complex deci- September 2018 global problem not only for patients and sion environments such as food choice. families, but also for health-insurance This project is in the data-collection 2020 providers and the wider economy. These phase. EBSA has run several community Technology-Assisted Behavioural Interven- diseases are largely lifestyle-driven, for nutrition education programs to teach tions in Type-2 Diabetics example by what we eat and drink and women how to choose healthier foods PANOS Seminar of the Sports Science Insti- how little we exercise. Health-related on a budget. Our previous research eval- tute of South Africa (essm) July 2020 types of behavior are difficult to shift, uated the program qualitatively. There and measuring and tracking behavior is a need to assess such interventions in the field is often a challenge. My quantitatively. Most nutrition studies Professional Activities field projects examine cognitive and use diet-assessment tools that require behavioral barriers to healthier deci- self-reporting, e.g., a food frequency Memberships sion-making and evaluate the impact, questionnaire, food recalling, or food Member of the Nutrition Network, since 2020 cost-effectiveness, and sustainability diaries. These measures may suffer Member of the BEHnet (Behavioural Experi- from bias and noise due to participants’ of behavior-change interventions. What ments in Health Network), since 2018 level of personalized feedback and inattention to what they eat, inability to health practitioner support is most recall fully, and the lack of a pecuniary helpful for diabetes patients to achieve incentive to reveal their true preferences. their diet and glucose control goals? To We aim to validate this survey measure what extent do cognitive and behavioral with an incentivized behavioral decision barriers prevent diabetes reversal? In task. We will test whether the EBSA pro- a field experiment, Monteiro, Sutter, gram impacts participants’ food choices Wiesen, Larmuth, and Kroff (work in when a real decision is made with real progress) test the impact of a wearable food and a retail voucher. To identify the technology called Continuous Glucose impact of the program, we use a pipeline Monitoring (CGM) against a control design, since the program is rolled out to group that receives the standard of care limited groups of women at a time. This for diabetes. Real-time information on allows us to compare previous partici- personal glucose levels allows the wear- pants to a control group of women with er to fine-tune their diet, but may not be the same observable characteristics, eli- sufficient to overcome cognitive barriers gible for future iterations of the program. such as present bias. In a second treatment, we add online health coaching to help patients identify their goals, Working Paper what it would mean to achieve them, Monteiro, S, Burns, J, and Piraino, P. (2018). the obstacles in the way, and whether The Prince and the Pauper: The effect of they have plans to overcome them. Our inherited wealth status on productivity in the randomized control trial is pre-registered lab. ERSA Working Paper 748. and data collection will commence when ethical approval is granted. Lectures and Presentations Monteiro, Pujol-Busquets Guillen, Smith, (since 2017) and Larmuth (work in progress) evalu- ates the impact of the Eat Better South 2018 Africa (EBSA) nutrition education program in low-income communities in the A Female Health Intervention for Western Cape. It validates the self-re- Low-Income Girls in the Western Cape German Development Institute and MPI port food frequency questionnaire with Collective Goods joint meeting, Bonn, an ecologically valid behavioral measure April 2018 of food choice at a local supermarket. I examine the potential of the nutrition

188 Alexander Morell

Since May 2020, I am professor of law suing credible. I argue that the benefits at the University of Mannheim. In 2019, of bundling greatly outweigh the costs. I completed my habilitation in law at the University of Cologne. In 2015, I defend- 2. Law of Evidence: In a book (my ed my PhD thesis in economics at the published habilitation thesis, or Ha- University of Jena, and in 2011 I did the bilitationsschrift) on the adversarial same with my PhD thesis in law at the proceedings in civil law (Morell 2020c), University of Bonn. I publish on legal I argue that judges can and should use tech, competition law, corporate law, the mechanism of Grossman unravel- and the law of evidence. I also pursue ing (Grossman 1980, Milgrom 1980) to empirical research on the interaction of uncover facts which only the party that the law and social norms and on ques- is not bearing the burden of proof has tions related to the access to justice. evidence to prove (or disprove). A case in point is the civil liability of VW in the 1. Legal Tech: In Germany, the legal emissions scandal under German law. Contact profession is highly regulated. Only To collect damages, plaintiffs have to registered attorneys are allowed to give prove that a member of the board knew [email protected] unrestricted legal advice. However, about the fraud. However, plaintiffs lack other regulated professions are allowed evidence on this point. German law https://www.coll.mpg.de/ to advise on legal questions that are does not provide for pretrial discovery, alexander-morell immediately linked to the service they and courts are reluctant to subpoena commonly provide (advice by tax ad- the submissions of documents. If the visers, planning services by architects, judge knows that the defendant has services of collection service providers). a piece of evidence that – depending In recent times, AI allows firms to pro- on its content – could exonerate the vide collection services in an automated defendant (in VW’s case, it was a secret manner online (think of flightright.com). memo on an internal investigation), the These relatively cheap and yet effective judge can infer the document’s content services have triggered fierce opposition from the party’s refusal to submit it. The from both debtor and attorney interest condition is that, by being strategically groups. I have written three articles skeptical, the judge provides an incen- (Morell 2019a, 2019b, 2019c) taking tive to submit the document in case it an economics perspective, arguing for has favorable content. My work shows a liberal approach to legal tech based that this line of judicial reasoning is not collection. All three articles have been only legal, but even required by German cited by the Federal Court of Justice procedural law. This insight reveals, for when it delivered a landmark decision instance, that the lenient use of prima in the matter in the fall of 2019. facie evidence in German courts is in line with proper probabilistic reasoning. In Morell (2020a) I argue for creating a functional equivalent of the class 3. Access to Justice: In Spamann et action in German law by using fiduciary al. (forthcoming), we use a realistic assignments to bundle claims in one penal law case and a multidimensional hand. I suggest that the conflicts of experimental setup to study how judges interest, which courts cite to void the reason in different legal cultures. In assignments required for bundling one dimension, we vary the strength claims, have to be considered as part of precedent; in the second dimension, of a tradeoff. On the one hand, bundling we vary the sympathetic appeal of the claims by assignment creates costly defendant; and in a third dimension, we principal-agent conflicts. On the other let judges from a number of different hand, bundling generates economies prominent jurisdictions (Argentina, of scale that in turn make threats of Brazil, China, France, Germany, India,

189 D. Research Portraits

USA) handle the material. We find that from factual or even probabilistic reason is not that the law is a partic- precedent barely influences the judg- reasoning. However, cognitive reflection ularly good fit – and thus a majoritar- es’ decisions. Document use and the certainly is an asset in the state exam, ian default. The general law of sales reasons provided differ between jurisdic- too, and the state exam may correlate can merely be excluded with greater tions. However, they do not differ along more with intelligence than the CRT. legal certainly than today’s doctrine of the lines of common-law vs. civil-law corporate sales. In corporate sales, the countries. If anything, precedent has a In Morell and Traxler (work in progress), parties have no interest in seller liability stronger influence on civil-law judges. using regression analysis in real-world by default, but instead wish to agree settings conducive to causal inference, on specific warranties to overcome a we analyze how wage motivates judges. problem of information asymmetry by Research Agenda Our preliminary results suggest that, precisely signaling the information they controlling for a host of variables and have. The resolution of the informa- 1. Access to Justice: Morell and time trends, a 1% wage increase makes tion asymmetry can only be assured Oeberst (work in progress) is a proj- it 0.1% more likely that a judge will hear with minimal court-induced noise. ect on discrimination in court. We try evidence. This, it seems, is reflected by to identify whether and how German a significant increase in the plaintiff’s judges discriminate against defendants chance of winning after a pay rise. Publications (Since 2017) whose name indicates a family history Furthermore, we measure the political of migration. In a pilot study, I gave 80 influence of government executives Articles in Peer-Reviewed Journals real judges a realistic reduced-form on the enforcement of tax offences. Morell, A. (2020a, forthcoming), “Mietright” prosecutor’s file, including an indict- In addition, we estimate the extent to und die Abtretungssammelklage, Zeitschrift ment, and let them decide whether to which courts prevent lawyers from für Wettbewerbsrecht, 3. open proceedings against the accused. I distorting attorney fees in their favor. Spamann, H., Klöhn, L, Jamin, C., Khanna, V., varied whether the name of the accused Liu, J. Z., Mamidi, P., Morell, A. and Reidel, I. was “Jünger” or “Yildiz”. The pilot data In Morell and Bechtold (work in prog- (forthcoming), Judging Around the World: A Lab Experiment on Country Differences ress), we study whether patent courts in suggests that judges assess the facts and Causal Determinants, Journal of Legal without bias. Nonetheless, they open Germany “sell” their forum by granting Analysis. a proceeding against the accused favors to potential claimants in pat- Morell, A. (2019d). The Short Arm of Guilt – with the Turkish-sounding name more ent-infringement cases. An Experiment on Group Identity and Guilt frequently. Also, they interpret the law Aversion. Journal of Economic Behavior and more strictly if the defendant has a 2. Antitrust: In Morell (work in progress, Organization, 166, 332–345. Turkish-sounding name. In our study, b), a project on sanctions for antitrust Kurschilgen, M., Morell, A. and Weisel, O. individual judges’ implicit bias predicts violations, I argue that the European (2017). Internal Conflict, Market Uniformity, discrimination. In a next step, I would Commission and the German Cartel and Transparency in Price Competition Be- tween Teams. Journal of Economic Behavior like to test whether judges can control Office should not reduce fines for cartels and Organization, 144, 121–132. their bias, once the Turkish identity of against firms if the firm has implement- the accused is made more salient. ed a corporate compliance program. Journal Articles (not peer-reviewed) In Morell (work in progress a), I replicate 3. Social norms: In Bystranowski, Morell, A. (2019a). Rage Against the Machine some of Rachlinski’s studies on cog- Harel, and Morell (work in progress), – Verstößt Legal-Tech-Inkasso gegen das Rechtsdienstleistungsverbot? Wertpapier- nitive biases among U.S. judges with we are planning an experiment on Mitteilungen, 73(39), 1822–1830. German judges. I am interested whether the abstract-concrete paradox, which German judges fall prey to cognitive says that people adhering to one Morell, A. (2019c). Keine Kooperation ohne Konflikt – Verstößt ein Inkassodienstleister biases to a lesser or greater extent than (typically utilitarian) abstract rule durch Angebot einer Prozessversicherung U.S. judges. I also try to identify fac- will still judge a concrete case on gegen § 4 RDG? Juristenzeitung, 74(17), tors of debiasing. First results from a the basis of a contradicting differ- 809–814. pilot with the same 80 judges as above ent (typically deontological) rule. We Morell, A. (2019b). Wirksamkeit der Inkas- seem to indicate that biases in Ger- derive constitutional implications for sozession bei RDG-Verstoß. Neue Juristische man judges tend to be smaller than in a judicial review of legislative acts. Wochenschrift, (36), 2574–2579. American ones. In addition, the judges’ Morell, A. (2017). Rechtssicherheit oder grades in the second state exam tend 4. Corporate Law: In Morell (work in Einzelfallgerechtigkeit im neuen Recht des to predict cognitive bias better than progress, c), I argue that – contrary to Delistings. Archiv für die civilistische Praxis, 217(1), 61–106. the cognitive reflection test (CRT). This the law as it stands in Germany – the is surprising because the state exam general law of sales should be applied tests legal reasoning, which is distinct to the sale of corporations. The main

190 Book 2018 – Bilanzrecht – Große Übung Zivilrecht Morell, A. (2020c, forthcoming), Der Beibrin- Evidence & Methodological Challenges – “(Wann) sind Richter besser als Laien?” gungsgrundsatz – Eine Rechtfertigung unter Law and Market Behavior Workshop: Taking – “Qualität richterlicher Arbeit aus (ver besonderer Berücksichtigung der Passivität Stock of Behavioral Law and Economics, haltens)ökonomischer Sicht” der nicht beweisbelasteten Partei. University of Notre Dame, London Campus December 2018 Summer term 2020 (University of Mannheim) Book Chapters 2019 – Corporate Governance II Morell, A. (2020b, forthcoming), Die Ökono- – Law and Economics mik des Registers, in: M. Schmoeckel (ed.), Do Judges Make Better Decisions than Lay – Comparative Competition Law Register. People – And If So, Why? – Examensklausurenkurs Programme in European Private Law for – Seminar in Unternehmenssteuerrecht und Morell, A. (2017), § 3 – Nachfrage, Angebot Postgraduates, University of Münster Rechtsökonomik und Märkte, in: Towfigh, E. et al.,Ökono - November 2019 mische Methoden im Recht, 2. A, 45–82. Winter term 2020 (University of Mannheim) Honors – Rechtsökonomik Work in Progress – Examensrepetitorium allgemeines Schuld Member of the Zukunftsfakultät am Wissen- recht inkl. Kaufrecht Bystranowski, P., Harel, A. and Morell, A. schaftskolleg zu Berlin since 2018 – Die Handels- und Steuerbilanz (work in progress), Democratic Judicial – Interdisziplinäres Seminar in Kartellrecht Activism. und Industrieökonomik – Quantitative Methods for Lawyers Morell, A. (work in progress a), Inside the Teaching (since 2017) German Judicial Mind – an International Replication and Comparison. Summer term 2017 Professional Activities Morell, A. (work in progress b), Corporate Rechtsökonomie Grundlagen Governance und Prävention im Kartellrecht (since 2017) – Sollten Compliance Programme bei der Winter term 2017 Member of the Editorial Board of the German Sanktionszumessung berücksichtigt werden? Zivilrecht und Ökonomie Law Journal, since 2018 Rechtsökonomisches Seminar Morell, A. (work in progress c), Gewährleis- Rechtshistorisches Seminar zum Prozess- tungsausschluss im Anteils- und Unterneh- Reviewer for recht menskauf: Ein Auslegungsproblem. American Review of Law and Economics, German Law Journal, Journal of Empirical Le- Morell, A. and Oeberst, E. (work in progress), Summer term 2018 gal Studies, Journal of Industrial Economics, Determinants of the Discrimination of (University of Bonn) Zeitschrift für Psychologie Migrants by German Judges. – Rechtsökonomisches Seminar Ombudsperson for good scientific practice at Morell, A. and Traxler, C. (work in progress), the MPI: 2013–2019 Wage Effects on Adjudication. Winter term 2018 (Universities of Bonn and Cologne, Richter- Morell, A. and Bechtold, S. (work in progress), akademie Trier) Forum Selling in Germany – Some Quantita- – Zivilrecht und Ökonomie tive Evidence. – Rechtsökonomisches Seminar – Einführung in die ökonomische Analyse des Rechts – “(Wann) sind Richter besser als Laien?” Lectures and Presentations – “Qualität richterlicher Arbeit aus (ver (since 2017) haltens)ökonomischer Sicht”

2017 Summer term 2019 (University of Mannheim) Verhaltenssteuerung durch Zivilprozessrecht – Corporate Governance II Habilitandenkolloquium, Max-Planck-Institut – Examensrepetitorium besonderes Vertrags- für ausländisches und internationales Priva- recht trecht, Hamburg – Examenskolloquium May 2017 – Examensklausurenkurs

Der Anscheinsbeweis im Kartellrecht Winter term 2019 Gesprächskreis Kartellrecht, University of (University of Mannheim & Richterakademie Bonn Trier) June 2017 – Rechtsökonomik – Examensrepetitorium allgemeines Schuld recht inkl. Kaufrecht

191 D. Research Portraits

192 Laurence O’Hara

I joined Christoph Engel’s research My first bigger project at the institute group in mid-2018 as a postdoctoral analyzed basic categories of fundamen- researcher. My background is largely tal rights doctrine in this regard (O’Hara, in law (especially constitutional law 2020). The topic illustrates which and politics), though I have a second steps the analysis of law with regard to degree in quantitative/economic policy findings of the social sciences requires: analysis. I came to the institute to work Certainly, one part is to conceptualize on the relationship of classic legal and make accessible the literature about doctrine and theory with the behavioral these findings for the legal discourse. sciences. Of course, many questions at But also, the law has to be re-conceptu- that intersection concern foundational alized. For example, in assessment of issues present in any contemporary interferences with fundamental rights, jurisdiction. Still, I maintain a special notions of autonomy prove to be the focus on the German legal tradition and pivotal aspect. I investigate to which its discipline of public law. The German extent differentiated notions of bounded Contact tradition of public law and government – autonomy (as opposed to bounded ratio- which is much more driven by multidi- nality, which is not immediately relevant [email protected] mensional value and norm systems than for the law) can be introduced into the mere utility-aggregation approaches doctrine, which allow us to account for https://www.coll.mpg.de/laurence-ohara – leads to specific properties of the certain kinds of influence on uncon- legal and political order. Its frameworks trolled processes of the mind. of controlled verbal reasoning produce specifically normative or juridical ways A second project (Engel et al., work in of judgment and decision-making, progress) undertakes a more compre- which are not necessarily common to hensive account. I initiated it last year other (western) jurisdictions and which with Christoph Engel. Together with the international behavioral debate other group members, we are writing is in some regards unaware of. I am a book that systematically approach- interested in investigating such forms es behavioral analysis for the context of behavior, both from a doctrinal/theo- of German public law and its classic retical and from a behavioral/empirical sub-matters. My own part (O’Hara, work angle. Overall, my current research can in progress, a) is about the use of state be grouped into four areas of analysis: authority by administrative law and the enforcing executive in order to affect Doctrine and Theory: Behavioral behavior. It covers classic forms of legal Analysis of Public Law action and coercion, but also informal forms of influence on behavior, as First of all, I work on Behavioral Public long as the administration unilaterally Law in the German jurisdiction. I am chooses and pursues a policy goal. especially interested in behavior-oriented analyses of the law itself: how legal Thirdly, I am working on another essay institutions digest behavior, in particu- about “the mental dimension of gov- lar what their underlying conceptions ernment – categories and principles of about judgment and decision-making the handling of state mental impacts in are. Generating a clearer picture in this public law” (O’Hara, work in progress, regard is a necessary precondition b). This essay is primarily an attempt for successful behavioral design of to systematize all those instances, legal institutions; at the same time, where the law does explicitly address it promises to advance legal scholar- circumstances in the mental sphere. ship and practice, because it brings to the surface conceptions of behavior that usually have remained implicit.

193 D. Research Portraits

Empirical Studies: Normative and Jurid- of COVID19, as compared with other Habilitation Project (tentative): ical Judgment and Decision-Making policy areas). Second, we investigate Leadership in Public Administration the evaluation of dangerous situa- My own empirical work looks mainly at tions under uncertainty, as is a central Finally, I am in the process of develop- basic categories of (public) law and the concept in German public security law. ing a project for my habilitation thesis. way people use its central operators I intend to write the book about the when asked to judge and decide cases. Barnes/O’Hara (work in progress) is leadership of administrative agencies I have designed my research program about laypeople’s knowledge of the (“Führung durch Recht”). I mean lead- so that it attends to the practically most law in areas where effectiveness and ership less in the formal sense (e.g., relevant levels of (legal) reasoning. enforcement rely on their actions. with regard to hierarchical structures or We take the example of consumer “chains of command”) than in sub- Egidy/O’Hara (work in progress) is law in the United Kingdom, which stantive terms: How the administration about proportionality assessments by has received special legislation in provides for the right policies being balancing of interests. The applicable the Consumer Rights Act tailored to made and enforced, how it motivates decision-making technique is fre- be read, known, and understood by and sanctions its personnel to promote quently described by the metaphor of individuals without legal education. its targets. In Germany, where through weighing (Abwägung). One of the core We measure the participants’ knowl- the principle of “Rechtsstaat” not just foundational topics about weighing is edge and conceptions about the most “rule of law” but “rule by law” is consti- whether it can be rationalized so that important consumer rights and try to tutionally prescribed, this is to a large it produces predictable results. Ac- picture patterns of misconceptions. extent a matter to be resolved within cording to a prevalent view, it is mainly legal terms. First of all, the topic is an arbitrary process. However, both in Classic Theory and Doctrine about the handling of principal-agent legal education and methodology of problems through administrative law judicial opinion-writing, there are efforts I also keep active in general doctrine and and about the solution of conflicts to make the decisions more reliable by theory. Here, I am working on a study within the administrative legal order. A structured assessment-frameworks. that builds on findings from my doctoral presently much-discussed sub-topic is With our vignette study, we investigate thesis (O’Hara, 2018) dealing with the the prevention of misconduct, especially whether such structured procedures political order and how it generates in the police and armed forces. Like all predictably reduce bias. Through “public rationality” (O’Hara, work in fields of legal compliance research, this experimental manipulations (irrelevant progress, c). In particular, I investigate topic must increasingly be approached information inviting discrimination), we factors in the institutional order that – with special regard to the behavioral induce bias in the normative decisions both from rational/public choice and be- sciences. From that angle, it is about for part of the group. We then test havioral theory perspectives – promise the behavioral design of institutions whether different degrees of structured to induce rule-following, self-disciplining, within government bodies (or behavioral decision-making can reduce said bias. and cooperative behavior in political organization theory of government). actors. The idea is to show strategies Further, importantly for the practice O’Hara/Rahal (work in progress) is for constitutional law to combat populist of administration in Germany, also the again vignette-based with experimental and chaotic decision-making, as has trends towards “reform” in the public manipulations; it also uses the COVID19 been observable in various (western) sector (e.g., by new public management) epidemic as a natural experiment. We systems in recent years. Also, I finished now date back so far that the time for investigate two domains of juridical a longer handbook article on the law of evaluations has come; also, the Berlin operators. First, we deal with the effects enforcement by administrative agen- Republic is now two decades old, which of different kinds of (mainly governmen- cies (O’Hara, forthcoming, b). Further, allows for first theoretical accounts tal) measures, for example a prohibition I drafted a short paper in legal theory of potentially changed traditions. And by statutory law, a prohibition by an (O’Hara, work in progress, d), which lastly, the topic of behavior control administrative agency, or a mere infor- stems from a comment I gave on a within government relates back to the mal request. That includes the degree to paper by W. Spohn at the Fritz Thys- normative-juridical tradition I mention which participants perceive a measure sen Foundation last year. I discuss to above. While administrations in other as binding or freedom-restricting and which extent Spohn’s theory fits into countries often have much clearer stan- to which they see it fit to alter their established legal conceptions about the dards of policy-making – above all: the behavior. We also elicit motivations to hierarchy of norms and the avoidance discovery and aggregation of potential comply with or offend against different of contradictions within the legal order. costs and benefits in economic terms –, legal measures (especially in the context the German approach is less clearly-de-

194 fined. It will have certain disadvantages O’Hara, L. (work in progress c). Institutionelle (especially inefficiencies), but likely also Vorkehrungen gegen antirationale Politik. Institutionenanalytische Perspektiven auf die strengths. The study would allow an Stabilität des deutschen Staatsrechts. account of both and might also foster O’Hara, L. (work in progress d). Zur Aus- a better understanding of European sagekraft rangtheoretischer Analysen der policy-making, where different traditions Rechtsordnung – Kommentar zur Abhand- of policy-making have to be reconciled. lung von W. Spohn: Nicht-monotone Norm- logik als qualitative Entscheidungstheorie. O’Hara, L. and Rahal, R. (work in progress). Context-dependence of Normative Judg- Publications (since 2017) ments? Patterns in Perceptions of Normative Force, Risk and Threat, and Ethical Dilemmas Journal Articles (not peer-reviewed) – Evidence From a Longitudinal Survey Study O’Hara, L. (2020). Grundrechtsschutz vor psy- During the COVID-19 Epidemic and Beyond. chisch vermittelter Steuerung – Beschränkte Autonomie und verhaltenswissenschaftliche Annahmen in der Grundrechtsdogmatik, Archiv des öffentlichen Rechts, 145, 133-187. Lectures and Presentations (since 2017)

Book 2018 O’Hara, L. (2018). Konsistenz und Konsens Introduction to Nudging and other Types of – Die Anforderungen des Grundgesetzes an Behavioral Interventions die Folgerichtigkeit der Gesetze, Studien und Panel Discussion with Avishalom Tor and Kai Beiträge zum Öffentlichen Recht, Tübingen: Purnhagen, Bucerius Law School Mohr Siebeck, 38. 12 November 2018

Book Chapter 2019

O’Hara, L. (forthcoming b). Durchsetzung, in: Comment on W. Spohn: Nichtmonotone Eisenmenger, S., Pfeffer, K., Eds. Handbuch Normlogik als qualitative Entscheidungs- Hamburger Polizei- und Ordnungsrecht, Stutt- theorie gart: Boorberg. AK Zurechnung, Fritz-Thyssen-Stiftung 10 October 2019

Mental Impacts of Government Action Work in Progress Categories and Principles of their Handling by Law Barnes, V. and O’Hara, L. (work in progress). Schülertreffen MPI Bonn Legal Literacy and its Driving Factors. The 30 November 2019 Case of UK Consumer Law. Egidy, S. and O’Hara, L. (work in progress). Structured Balancing of Interests – How Teaching structured decision-frameworks affect the rationality of balancing decisions in constitu- Winter Term 2018/19 tional law. Hochschule der Akademie der Polizei Hamburg Engel, C., Egidy, S., Hermstrüwer, Y., Hoeft, – Lecture “Polizeirecht” L., Langenbach, P. and O’Hara, L., Eds. (work in progress). Verhaltenswissenschaftliche Winter Term 2018/19 Analyse des öffentlichen Rechts. Hochschule der Akademie der Polizei O’Hara, L. (work in progress a). Autoritativ Hamburg lenkendes Verwaltungsrecht und Verwaltung- – Lecture „Allgemeines Verwaltungsrecht shandeln, in: O’Hara, L., Engel, C., Egidy, S., – Lecture „Verwaltungsprozessrecht” Hermstrüwer, Y., Hoeft, L. and Langenbach, P., Eds. (work in progress). Verhaltenswissen- Summer Term 2018 schaftliche Analyse des öffentlichen Rechts. Hochschule der Akademie der Polizei Hamburg O’Hara, L. (work in progress b). Die psy- – Lecture “Beamtenrecht” chische Dimension des Regierens – Katego- rien und Grundsätze der Verarbeitung staat- licher mentaler Einwirkungen im öffentlichen Recht.

195 D. Research Portraits

196 Jerome Olsen

Overview These results are not a contradiction, but reveal an important distinction. The In the broadest sense, my research emotions that most likely affect taxpay- deals with the psychology of economic ers are not those that occur randomly decision-making. Most of my projects in- (i.e., incidental), but those that can be vestigate individuals’ tax compliance be- deliberately influenced by the authorities havior and how it is influenced by insti- themselves (i.e., integral) (as discussed tutional settings as well as how it varies in Enachescu et al., in press). Such re- between individuals. In my most recent sults should be of interest to policy mak- work at the institute, which I joined in ers who design services that try to make October 2019, I focus on risky deci- compliance easy and less frustrating. sion-making in neutral versus normative contexts, on the emergence of prosocial Further work in the field of tax deci- behavior, and on a meta-analysis of sions concerned the role of mental deontological versus utilitarian moral accounting for differences in tax burden Contact decision-making. Finally, I contribute to perceptions (Olsen et al., 2019), the different large-scale collaborative sci- cross-cultural generalizability of trust [email protected] ence initiatives. I will provide short sum- in the authorities along with deterrence maries for all of these areas of interest. power to predict tax behavior (Batran- https://www.coll.mpg.de/jerome-olsen cea et al., 2019), perceptions of direct Tax Compliance Behavior versus indirect taxes (Olsen et al., 2017), a replication study on whether taxes Arguments against taxes are often emo- are disliked more than equivalent other tionally charged. However, little research costs (Olsen et al., 2019), the poten- has linked emotions to tax compliance tial effects of anonymity breaches on decisions and perceptions of the au- tax decisions in the lab (Kogler et al., thorities. In a mixed-methods study, we 2020), and information processing in aimed to lay the ground by using focus classical tax experiments using Mou- groups to investigate which integral selabWEB (Kogler et al., under review). emotions are actually present during the Different follow-up projects in these process of paying taxes and in which areas are currently under development. specific situations they are elicited (Enachescu et al., 2019). In a represen- Risky Decision-Making in Different tative survey, we then quantified these Contexts results and inspected associations with compliance intentions. The results re- Tax decisions can be viewed as a vealed that noncompliance is influenced case of risky decisions in a normative by specific emotional experiences. context where the sure option (i.e., tax compliance) is the normatively expect- We did not only investigate integral ed response. Especially in economics, emotions, those that are causally linked there is a debate whether such experi- to the choice-relevant event, but also ments should therefore deliberately use conducted an experimental study on a context-rich experimental setting or the role of incidental emotions, those rather one that is context-free. Together that are unrelated to the decision with Susann Fiedler, we are currently setting and occur casually (Enachescu planning an eye-tracking experiment et al., resubmitted after revision). While where we aim directly to compare tax self-reports and physiological measures decisions with monetarily equivalent confirmed a successful manipula- gamble-like decisions. We will not only tion of specific emotions, we did not investigate individuals eye gaze to infer observe any compliance differences underlying cognitive processes, but between different emotion conditions. also include individual measures of

197 D. Research Portraits

norm espousal. We expect individuals person, whereas utilitarianism would Kogler, C., Olsen, J. and Bogaers, R. (2020). to be more conflicted about choosing a argue the opposite. Drawing from a Enhanced anonymity in tax experiments does not affect compliance. Journal of Economic risky option in a tax setting, especially dual-process perspective, it has been Behavior & Organization, 177, 390-398. if they identify as individuals who value argued that individuals are more prone Olsen, J., Mosen, J., Voracek, M. and Kirchler, to deontological judgments when they following social norms. The results will E. (2019). Research practices and statistical add to the experimental design literature are in an intuitive cognitive mindset and reporting quality in 250 economic psychology as well as to understanding differenc- that utilitarian judgements are pro- master’s theses: A meta-research investiga- es that are driven by interindividual moted through deliberation. To date, a tion. Royal Society Open Science, 6, 190738. tendencies to follow rules and norms. meta-analytic synthesis of this effect is Olsen, J., Kogler, C., Brandt, M. J., Dezsö, L. missing. Together with Susann Fiedler, and Kirchler, E. (2019). Are consumption tax- The Emergence of Prosocial Behavior Rima-Maria Rahal, and Alina Fahren- es really disliked more than equivalent costs? Inconclusive results in the USA and no effect waldt, we aim to estimate the size of the in the UK. Journal of Economic Psychology, Prosocial behavior is often viewed from cumulative effect of intuitive deontol- 75, 102145. a dual-process framework perspective, ogy and to identify potential boundary Enachescu, J., Olsen, J., Kogler, C., Zeelen- where the case has been made that conditions. We have already identified berg, M., Breugelmans, S. M. and Kirchler, E. intuition should favor prosociality. How- the relevant studies and are now in the (2019). The role of emotions in tax compli- ever, the cumulative empirical evidence process of coding all study effect sizes. ance behavior: A mixed-methods approach. Journal of Economic Psychology, 74, 102194. concerning this effect is mixed. Togeth- er with Susann Fiedler and Robert Lillig Collaborative Science Initiatives Batrancea, L., Nichita, A., Olsen, J., Kogler, C., Kirchler, E., Hoelzl, E., … Zukauskas, S. (in preparation), in this experimental (2019). Trust and power as determinants of study we argue that this effect could be As a response to low replicability tax compliance across 44 nations. Journal of a function of the proportion of proso- rates, the research culture in many Economic Psychology, 74, 102191. cials and proselfs in a study sample (in fields, most prominently in psychology, Olsen, J., Kasper, M., Kogler, C., Muehlbaher, terms of social value orientation), where is facing a constructive reform. The S. and Kirchler, E. (2019). Mental accounting prosociality is only intuitive for individ- Psychological Science Accelerator of income tax and value added tax among uals with a prosocial personality. We (PSA) is a crowdsourced large-scale self-employed business owners. Journal of Economic Psychology, 70, 125-139. do not only consider choice behavior, collaboration network that aims to but utilizing eye-tracking we are able overcome criticism that are often char- Zehnter, M. K., Olsen, J. and Kirchler, E. (2018). Obituaries of female and male to investigate differences in cognitive acteristic of single empirical studies, leaders from 1974 to 2016 suggest change in decision processes between individu- as, for instance, restricted samples, descriptive but stability of prescriptive gender als. While we do not find the proposed ungeneralizable settings, or not enough stereotypes. Frontiers in Psychology, 9, 2286. moderation pattern, our results highlight statistical power (Moshontz et al., Olsen, J., Kasper, M., Enachescu, J., Benk, S., the role of interindividual differences in 2018). As a member of this network, Budak, T. and Kirchler, E. (2018). Emotions the construction of decision situations, I contribute my available resources to and tax compliance among small business owners: An experimental survey. International which are not overwritten by situational support research endeavors that aim Review of Law & Economics, 56, 42–52. changes like induced time pressure at conducting generalizable studies. or cognitive load. To simplify, proso- Moshontz, H., Campbell, L., Ebersole, C., Ijzerman, H., Urry, H. L., Forscher, P., ... Olsen, cial behavior seems to depend more In this spirit of an open and cumulative J., ... Chartier, C. R. (2018). The psychological on personal factors (i.e., social value science approach, I adhere to open science accelerator: Advancing psychology orientation) than on situational factors science practices in my own primary through a distributed collaborative network. (induced intuition vs. deliberation). research, by making materials, data, and Advances in Methods and Practices in Psy- chological Science, 1(4), 501-515. code publicly available and preregister- Meta-Analysis of Deontological Versus ing hypotheses before data collection. Pietschnig, J., Gittler, G., Stieger, S., Forster, M., Gadek, N., Gartus, A., ... Olsen, J., ... Vo- Utilitarian Moral Decision-Making racek, M., (2018). Indirect (implicit) and direct (explicit) self-esteem measures are virtually Two commonly contrasted ethical Publications (since 2017) unrelated: A meta-analysis of the initial pref- frameworks in moral philosophy are erence task. PLoS ONE, 13, e0202873. deontology and utilitarianism. While Articles in Peer-Reviewed Journals Olsen, J., Kogler, C., Stark, J. and Kirchler, E. (2017). Income tax versus value added tax: A deontological ethics judges an action Anvari, F., Olsen, J., Hung, W. Y., & Feldman, G. based on moral standards, utilitarian mixed-methods comparison of social repre- (2021). Misprediction of affective outcomes sentations. Journal of Tax Administration, 3, ethics judges an action merely based on due to different evaluation modes: Replica- 87-107. its consequences. For instance, when tion and extension of two distinction bias experiments by Hsee and Zhang (2004). faced with a dilemma to sacrifice one Journal of Experimental Social Psychology, person to save five others, deontology 92, 104052. would argue not to sacrifice the single

198 Articles Accepted for In-Principle Publica- Olsen, J., Kang, M. and Kirchler, E. (2018). Tax Professional activities tion (Registered Reports) or Under Review psychology. In A. Lewis (Ed.), The Cambridge handbook of psychology and economic Member of the expert group for the eval- Bago, B., Aczel, B., Zoltan, K., Protzko, J., behaviour (2nd edition, 405-429). Cambridge: uation of horizontal tax monitoring of the Kovacs, M., Nagy, T., … Olsen, J., … Chartier, Cambridge University Press. Austrian Ministry of Finance C. R. (in principal stage 1 acceptance). Moral thinking across the world: Exploring the Kasper, M., Olsen, J., Kogler, C., Stark, J. and influence of personal force and intention in Kirchler, E. (2017). Individual attitudes and moral dilemma judgements. Nature Human social representations about taxation, tax Behavior. avoidance, and tax evasion. In Y. Epifantseva and N. Hashimzade (Eds.), Routledge com- Chen, S.-C., Szabelska, A., Chartier, C. R., panion to tax avoidance research (289-303). Kekecs, Z., Lynott, D., Bernabeu, P., … Olsen, London: Routledge. J., … Schmidt, K. (in principal stage 1 acceptance). Investigating object orientation effects across 14 languages. Psychonomic Bulletin & Review. Lectures and Presentations Jones, B. C., DeBruine, L., Flake, J. K., Aczel, (since 2017) B., Adamkovic, M., Alaei, R., … Olsen, J., … Chartier, C. R. (in principal stage 1 acceptance). Social perception of faces around the Studying Tax Behavior: An Overview of world: How well does the valence-dominance Current Research Methods (invited) rd model generalize across world regions? 3 International Taxpayer Rights Conference, Nature Human Behavior. Amsterdam, The Netherlands 3-4 May 2018 Enachescu, J., Puklavec, Z., Olsen, J. and Kirchler, E. (resubmitted after revision). Tax Questionable Research Practices and Sta- compliance is not fundamentally influenced tistical Reporting in Economic Psychology by incidental emotions: An experiment. Eco- Master’s Theses: A Meta-Research Investi- nomics of Governance. gation (invited) Department Colloquium, Social Psychology, van den Akker, O., Weston, S. J., Campbell, Tilburg University, Tilburg, The Netherlands L., Chopik, W. J., Damian, R. I., Davis-Kean, 30 November 2018 P., … Olsen, J., … Bakker, M. (under review). Preregistration of secondary data analysis: A template and tutorial. Advances in Methods and Practices in Psychological Science. Teaching Kogler, C., Olsen, J., Müller, M. and Kirchler, Summer term 2017 E. (under review). Information processing University of Vienna, Austria in tax decisions: A MouselabWEB study on Seminar zur Bachelorarbeit the Allingham and Sandmo model of income [Bachelor’s thesis seminar] tax evasion. Journal of Behavioral Decision Making. Summer term 2017 University of Vienna, Austria Olsen, J., Kogler, C., Kirchler, E., Batrancia, L. Forschungswerkstatt and Nichita, A. (under review). Trust in author- [Research workshop] ities and power of authorities are both associated with shadow economy and corruption: A Winter term 2017/2018 44-nation study. Regulation & Governance. Summer term 2018 Winter term 2017/2018 Summer term 2019 Book Chapters University of Vienna, Austria Enachescu, J., Puklavec, Z., Bauer, C., Olsen Vertiefungsseminar Arbeit, Wirtschaft und J., Kirchler, E. and Alm, J. (in press). Inci- Gesellschaft: Methoden der Wirtschaftspsy- dental emotions, integral emotions, and chologie decisions to pay taxes. In M. M. Erdogdu, L. [Advanced seminar work, economy, and soci- Batrancea and S. Cevik (Eds.), Behavioral pub- ety: Methods in economic psychology] lic finance: Individuals, society and the state. London: Routledge. Winter term 2017/2018 Summer term 2019 Olsen, J., Kapferer, T. and Kirchler, E. (2020). University of Vienna, Austria Comparacion psicologica del impuesto sobre Seminar zur Masterarbeit la renta y el impuesto al valor agregado: [Master’s thesis seminar] Representaciones sociales, registro mental y cumplimiento. In C. A. Ruiz Jiménez (Ed.), Derecho tributario y derechos humanos: Diálogo en México y el Mundo (445-476). Cuauhtémoc, Mexico: Tirant lo blanch.

199 D. Research Portraits

200 Matthias Praxmarer

Overview oldest generation shows higher levels of unconditional cooperation when they I joined the institute as a Research Fel- are matched with the youngest cohort. low on 1 October 2017. Since October Finally, we argue that prosocial choices 2018, I have been a Senior Research are not associated with an in-group Fellow after completing my doctoral bias towards the own age cohort. studies at the Economics Department of the University of Cologne. Prior to In Praxmarer, Rockenbach, and Sutter joining the Experimental Economics (work in progress), we implement a Group (EEG), I was a Research and repeated prisoner’s dilemma game with Teaching Assistant at the chair of institutionalized third-party punishment “Economics: Design & Behavior” at the with juniors (students) and seniors (50+ University of Cologne (starting in March years). In this set-up, players always 2015). My research is in the fields of interact with players of the same genera- behavioral and experimental econom- tion, while observers belong either to the Contact ics, with a focus on applied microeco- same or to the other generation. The aim nomics, organizational economics, of this paper is twofold. Firstly, we want [email protected] and political economy. I predominantly to look at generational differences in use laboratory and (artefactual) field cooperative attitudes. Secondly, we test https://www.coll.mpg.de/ experiments to address my research whether and how the efficiency of pun- matthias-praxmarer questions. In particular, I focus on the ishment varies with the generation of the role of information in the contexts of third-party punisher, i.e., the punisher as intergenerational decision environments, a peer versus the punisher belonging to moral decision-making, and team work. the other generation (which allows us to look at potential intergenerational norm Prosociality in Intergenerational Deci- transmission). We find that members of sion Environments the older generation achieve significantly higher cooperation rates than mem- In two projects, we aim to understand bers of the younger generation. More- the role of age in prosocial deci- over, members of the older generation sion-making with the use of artefac- punish norm violations more often than tual field experiments. Drawing on members of the younger generation. subjects from the Austrian population, Interestingly, the generation of the third these projects investigate whether and party has no impact on the aggregated how age is related to prosocial deci- cooperation rates in either generation. sion-making, and how the interaction of subjects from different generations Moral Decision-Making affects cooperation and generosity. A rather different point about the impor- In Romano et al. (2020), we implement tance of information in a social context institution-free environments (dictator is addressed in Praxmarer (work in game and prisoner’s dilemma game) to progress). This project examines wheth- test whether decision makers condition er and how relative income concerns prosocial decisions and beliefs when re- affect the honesty of decision-makers. ceiving information about the generation To test the impact of information about of the interaction partner. We find that a peer’s income (which sets a social participants cooperate more with older reference point) on honesty, we confront generations than with younger genera- decision-makers either with a high or tions. This pattern is particularly strong a low peer income. The results show in the youngest generation. In addition, that decision-makers act dishonest- the data reveal that age is positively ly in both high and low peer-income correlated with generosity and that the situations. Yet, dishonest behavior is

201 D. Research Portraits

significantly more frequent in the high However, if there is conflict in teams, Publications (since 2017) peer-income situation than in the low then the intrinsic value of possessing peer-income situation. Consequently, the decision right becomes very high Articles in Peer-Reviewed Journals relative income concerns affect the – even higher than for individuals. Romano, A., Bortolotti, S., Hofmann, W., honesty of decision-makers, and thus Praxmarer, M. and Sutter, M. (forthcoming). are correlated with moral perceptions. In Monteiro, Praxmarer, and Sutter Generosity and Cooperation Across the Life (work in progress), we study correlation Span: A Lab-in-the-Field Study. Psychology and Aging. In Gretschko, Fugger, and Praxmarer neglect in belief formation by individuals (work in progress), we investigate favor- and teams. In this project, we contrib- itism in procurement auctions and aim ute to the existing research showing Book Chapter to shed light on manipulations in pro- (in very different settings) that a large Sutter, M., Kocher, M. and Praxmarer, M. curement auctions (multi-billion dollar number of people neglect correlations (2020). Team Decision-Making. In: Handbook mechanisms used by big industrial com- in information (e.g., signals, actions), of Labor, Human Resources and Population Economics, Cham: Springer, 1–25. panies and public authorities) caused by which has a tremendous impact on the the typical principal-agent set-up. While belief formation and subsequently also corruption and exogenous favoritism affects decisions. In this project, we aim Dissertation are rather easy to detect and to “punish”, to understand how such information Praxmarer, M. (2018). The role of social cues this project proposes and tests anoth- structures affect the belief formation and social reference points in economic er form of manipulation: endogenous in teams. Furthermore, our experimen- decision-making. Dissertation, Universität zu favoritism (e.g., through co-working tal design allows us to provide more Köln. and ongoing business relationships). sophisticated insights on the different foundations of this phenomenon by Team Decision-Making opening the black box of the belief Work in Progress formation process via communication Buffat, J., Praxmarer, M., Sutter, M., The Buffat, Praxmarer, and Sutter (work in protocols of team decision-making. Intrinsic Value of Decision Rights: Team vs. progress) contribute to the literature on Individual Decision-Making. the intrinsic (psychic) valuation of deci- A more general overview on dif- Fugger, N., Gretschko, V., Praxmarer, M., sion rights. In this project, we compare ferences between individual and Favoritism in Procurement Auctions. how decision-makers – either individu- team decision-making and potential Praxmarer, M., Social Reference Points and als or teams – value decision rights. In benefits for organizations is pre- (Dis)Honest Behavior. particular, we look at the instrumental sented in Kocher et al. (2020). Praxmarer, M., Monteiro, S., Sutter, M., (the objective and rational value of a Correlation Neglect in Belief Formation: decision right) and intrinsic (psycholog- Experimental Evidence From Groups. ical benefits of holding a decision right) Outlook Praxmarer, M., Rockenbach, B., Sutter, M., values of individuals and two-person Cooperation under Third-Party Punishment: teams. Our experimental results are Intergenerational decision-making, Experimental Evidence from Two Adult Generations. threefold. First, we can replicate previ- inequality, and redistribution. This ous findings by showing that individual research agenda builds on my previous decision-makers do intrinsically value work on inter- and intragenerational decision rights. Second, we find that the decision-making. In particular, we want Teaching intrinsic value of individuals and teams to use our insights to examine the im- Summer term 2019 are of comparable magnitude in the portance of both vertical and horizontal University of Cologne Seminar in Behavioral Economics aggregate. Third, our results suggest redistribution policies on the distribu- that the individual acceptance and tional preferences of decision-makers. Summer term 2020 satisfaction of team members with their University of Cologne team decisions have a huge impact on Team decision-making. I would also Seminar in Behavioral Economics the intrinsic valuation of a decision right. like to continue my research on team If both team members are satisfied with decision-making with an emphasis on the decision-making process in their belief formation processes in teams team, the intrinsic value is half of the and individuals, and a systematic value of individual decision-makers and analysis of the role of the group size partly consistent with the hypothesis of on decision outcomes in strategic and teams as fully rational decision-makers. non-strategic decision environments.

202 Shambhavi Priyam

Overview this issue in the most efficient way, we follow families over a long period of I am a third-year PhD student in the time, measuring their income and other Experimental Economics Group of the household variables, and playing games Max Planck Institute for Research on measuring time preferences, risk prefer- Collective Goods and the University ences, and other-regarding preferences. of Cologne. Prior to stating my doc- This study is currently in its third wave. toral studies, I was working as a Field Research Associate at the Abdul Latif Preferences affecting behavior of chil- Jameel Poverty Action Lab in India. dren: Here we try to study what effect My research concentrates on behav- preferences have on the behavior of chil- ioral development economics, where I dren and adolescents. Using the exten- study decision-making and behavioral sive data on families, we try to measure change through field-based studies. It is the predictive power of preferences for focused primarily on two areas (i) time, members of the same family. Here, we Contact risk, and other-regarding preferences, try to explore whether it is family envi- and (ii) beliefs and social norms. ronments or preferences that correlate [email protected] with outcomes like risky behaviors, Time, Risk, and Other-Regarding prosociality, and externalizing behaviors. https://www.coll.mpg.de/ Preferences shambhavi-priyam Family affecting the behavior of chil- This large-scale study has been taking dren: Parenting styles can affect the place in rural Bangladesh since 2017, labor force of the following generation, in collaboration with Matthias Sutter, and should therefore be studied par- Hannah Schildberg-Hörisch, Laura Breit- ticularly for its links for human capital kopf, and Shyamal Chowdhury. As part formation. Children’s skills and attitudes of this study, we conduct field experi- evolve as a function of endowments and ments in more than 4,000 households, parental inputs. Most of the literature spanning 150 villages. In each of the studying parenting uses test scores as households, we run tests of preferences outcomes in WEIRD populations. It often with the male and female household ignores non-cognitive and emotional heads and their children. This way we skills, which is a focus of our work. have a long-term mapping of development of preferences at the family level. Beliefs and Social Norms Bangladesh is a crucial location for this study, as it is among the fastest-grow- Social norms and belief in health: ing economies, where the poverty Arsenic-contaminated groundwater is dropped from 31.5% in 2010 to 24.3% consumed by approximately 100 million in 2016. We look to study, among other people worldwide and has severe health topics, the subjects mentioned below. consequences. Using an RCT conducted Our analysis looks at the entire family, in India (with Matthias Sutter and Daniel thus studying how these preferences Salicath), we test the effectiveness of an get transmitted within these families: information-based intervention, focused on spreading awareness about arse- Malleability of preferences: Cross-sec- nic in the groundwater and mitigation tional studies of preferences may be techniques. We use this context to study limited in their approach to study how how social norms and beliefs affect how changing economic circumstances people act on new information about would change preferences. The most safe water use. Despite the importance ideal method to study malleability would of the role of social norms and beliefs be to assign economic circumstanc- in influencing behavior, there has been es to households randomly. To tackle little research using them to understand

203 D. Research Portraits

information interventions better; we look 2019 to connect these strands of research. Examining Social Networks in German We use incentivized social-norm ex- Classrooms periments across 150 villages to see BIM Workshop, Innsbruck how our intervention changes norms. February 2019

Social Norms and Beliefs about Health Bene- Beliefs in classrooms about risky be- fits: Experimental Evidence from Bihar, India havior: This is a field study conducted (with Daniel Salicath) in four schools across Germany (with Spring School in Behavioral Economics, Matthias Sutter and Sebastian Schnei- San Diego March 2019 der). Here, we examine how the risky behavior of adolescent students, in particular drinking alcohol and smoking cigarettes, is dependent on beliefs about their peers. Using a measure for social perception bias about the behavior of students, depending on the size of their classroom social networks, we find that within one’s classroom, their spending on these risky items is positively correlated with their beliefs about their friends’ spending, and also the beliefs their friends have about their own peers. The study also finds that most students overestimate their peers’ spending on these items, but are less biased as they become more central to the classroom networks.

Working Papers Breitkopf L., Chowdhury S., Priyam S., Schildberg-Hörisch H., Sutter M. (2020). Do Economic Preferences of Children Predict Behavior? DICE Discussion Paper No 342.

Lectures and Presentations (since 2017)

2018

Preferences and Life Outcome of Children and Adolescents in Bangladesh Experimental Economics Group: Inaugural Conference, Bonn May 2018

Preferences and Life Outcome of Children and Adolescents in Bangladesh Advances in Field Experiments, Boston October 2018

Preferences and Life Outcome of Children and Adolescents in Bangladesh Max Planck Forum, Bonn November 2018

204 Rima-Maria Rahal

Summary Report lem. Putting this technology to use in intergroup dilemmas, we studied the Following the completion of my PhD at decision-makers’ struggles to decide the institute from 2014-2018, I remained between their acting according to their a guest researcher in Susann Fiedler’s personal preferences for cooperating group on cognitive processes underlying with others, and following the group economic decision-making, otherwise norm to favor the ingroup and dis- working at the Department of Social Psy- criminate against the outgroup (Rahal, chology at Tilburg University. My work Fiedler, and De Dreu, 2020). For instance, focuses on investigating the cognitive our research in the context of intergroup mechanisms underlying people’s deci- decisions (Rahal, Fiedler, and De Dreu, sion-making via recordings of eye gaze, 2020) suggested that, although ingroup and on understanding the affective pro- favoritism appears pervasive in choices, cesses involved in decision-making via only a minority of participants visually recordings of skin-surface temperature. attend to group membership information Contact and therefore drive this effect. Those Although it is not always easy to under- who do not view information about [email protected] stand which choices people make in the others’ group membership subse- many social, moral, economic, and even quently can and do not discriminate. https://www.coll.mpg.de/ legal contexts, much research has been In moral dilemmas, we studied the de- rima-maria-rahal devoted to uncovering the preferences cision-makers’ choice processes while of decision-makers and studying choice they deliberated whether to maximize outcomes. Even less straightforward is welfare or adhere to overarching moral the investigation of what drives deci- rules, such as the prohibition of harming sion-makers to make the choices they others (Rahal, Hoeft, and Fiedler, work opt for. Asking the decision-makers for in progress). Our results were not in line their reasoning or emotions experienced with the currently predominant theory while making a decision may perturb about processes in moral decisions, the the decision-making process itself. Dual Process Theory of Moral Judgment Therefore, unobtrusive tools are needed (Greene, 2004), but rather supported to study such mechanisms underlying the notion that decision-makers with decision behavior. This exploration stronger moral preferences were faster of the underlying cognitive and affec- and struggled less with making their tive mechanisms of decision-mak- choices compared to those with mixed ing is my core research interest. moral preferences (Rahal, Hoeft, and Fiedler, work in progress). In judicial di- Eye-tracking, used mainly to study lemmas, we studied how decision-mak- cognitive mechanisms by observing ers balance the benefits and costs of attention allocation, search patterns, damages judgments to perpetrators, and fixation-level data (for an overview, victims, and society as a whole (Engel see our methods paper on the promise and Rahal, work in progress). We show of using eye-tracking in social psycho- that decision-makers indeed engage in logical research: Rahal & Fiedler, 2019), balancing, and that their gaze patterns allows us – inter alia – to make visible can be used to predict choices even the struggles that decision-makers in this complicated context. In each face while choosing between different of these projects, studying eye gaze options. Assessing whether and how allows a fine-grained investigation of decision-makers interact with different the way decision-makers cognitive- aspects of the visual stimuli represent- ly deal with a decision problem. ing the choice options allows inferences about their priorities and a weighting Thermal imaging allows continuous of different parts of the choice prob- high-resolution recordings of skin tem-

205 D. Research Portraits

perature (Kistler et al.,1998). In doing so, feeling guilty (Charness and Dufwen- Work in Progress tracking affective processes underlying berg, 2006). To be able to use thermal O’Hara, L. and Rahal, R. (work in progress). behavioral outcomes becomes possi- imaging in investigations of economic Context-dependence of Normative Judg- ble in an unobtrusive manner: Unlike decision-making, much methodological ments? Patterns in Perceptions of Normative affective measures such as the Galvanic groundwork will need to be done, such Force, Risk and Threat, and Ethical Dilemmas – Evidence From a Longitudinal Survey Study Skin Response, which requires partic- as evaluating whether reliable thermal During the COVID-19 Epidemic and Beyond. ipants to make physical contact with patterns of affect can be established the measurement device at all times, through changes in the surface tem- Rahal, R.-M., Fiedler, S. and De Dreu, C.K.W., Staying Blind to Stay Fair: Inequality-Averse infrared thermal imaging can be used perature of different facial regions. Decision-Makers Avoid Group Membership non-invasively, i.e., without interfering Information and Ingroup Favoritism with the participants’ bodies. Further, Rahal, R.-M., Hoeft, L. and Fiedler, S., Eyes on infrared thermal imaging does not rely Publications (since 2017) Morals: Investigating the Cognitive Process- on decoding facial behavior to infer es underlying Moral Decision-Making via affect (for a discussion of the shortcom- Articles in Peer-Reviewed Journals Eye-Tracking. ings of inferring emotions from facial Rahal, R.-M. and van Beest, I. (forthcoming). Rahal, R.-M., Siebers, T., Sleegers, W. W. A. behavior, see Barrett, Adolphs, Marsella, Conflict and Competition,The Routledge En- and van Beest, I., Your Lies Leave Me Cold: cyclopedia of Psychology in the Real World. Martinez, and Pollak, 2019). Instead, in- Thermal Imaging Reveals Decreased Finger Temperatures When Observing Lies – in Rahal, R.-M., Fiedler, S. and De Dreu, C.K.W. frared thermal imaging relies on tracing preparation. thermal responses of the skin sparked (2020). Prosocial Preferences Condition Decision Effort and Ingroup Biased Generos- Rahal, R.-M. and van Beest, I., Warm Glow or by autonomous reactions of the nervous ity in Intergroup Decision-making. Scientific Guilt Aversion? Investigating Affective Drivers system. This makes infrared thermal Reports, 10(10132). of Giving via Thermal Imaging. imaging a promising technology for Rahal, R.-M. and Fiedler, S. (2019). Under- tracking affective processes generally, standing Cognitive and Affective Mech- and in particular for assessing autono- anisms in Social Psychology through Awards mous responses by the nervous system. Eye-tracking, Journal of Experimental Social Psychology, 85. Commendation We have used thermal imaging to study Society for the Improvement of Psychological Rahal, R.-M. (2018). The Fire Burns Within: affective processes in judgments of Science Individual Motivations for Self-Sacrifice.The veracity (Rahal, Siebers, Sleegers, and 2020 Behavioral and Brain Sciences, 41. van Beest, work in progress). People Conference Scholarship tend to be bad at explicitly detecting lies, Bouwmeester, S., Verkoeijen, P. P. J. L., Aczel, B., Barbosa, F., Begue, L., Branas-Garza, P., ... OpenCon Toronto, Max Planck Society, 2018 rarely deviating in accuracy from chance Wollbrant, C. E. (2017). Registered Replica- levels. However, physiological respons- tion Report: Rand, Greene, and Nowak (2012). Open Science Fellowship es may yield higher levels of accuracy Perspectives on Psychological Science: A Wikimedia Germany, Stifterverband, Volkswa- gen Foundation (5000€), 2018 in differentiating lies from the truth. Journal of the Association for Psychological Science, 12(3), 527–542. Specifically, if facing deception induces Travel Award threats in observers, the physiological Hermann Willkomm Foundation (140€), 2018 responses regulated by the autonomic Working Papers Dissertation Award nervous system may respond even if no Engel, C. and Rahal, R.-M. (2020). Justice is Associatie van Sociaal Psychologische explicit detection of deception occurs. in the Eyes of the Beholder – Eye-Tracking Onderzoekers (500€), 2019 In line with this argument, fingertip Evidence on Balancing Normative Concerns in Torts Cases. MPI Discussion Paper 2020/3. temperatures decreased while observers Workshop Grant Associatie van Sociaal Psychologische where confronted with a lie compared Rahal, R.-M. and Heycke, T. (2020). Hoard- Onderzoekers (1500€), 2019 to a true story, even though explicit and ing in Science, No Thanks. Openness and Transparency in Crisis Mode and Beyond. indirect lie detection had failed. Further, MetaArXiv. Travel Award we plan to study the affective responses Society for the Improvement of Psychological Steinhardt, I., Fischer, C., Heimstadt, M., Science (400 AUD), 2019 involved in prosocial decision-making Hirsbrunner, S. D., Ikiz-Akıncı, D., Kressin, (Rahal and van Beest, work in progress), L., … Rahal, R.-M. … and Wunsche, H. (2020). Workshop Grant aiming to use thermal imaging to study Das Offnen und Teilen von Daten qualitativer International Association for Research in whether thermal patterns of joy predict Forschung: eine Handreichung. (Opening up Economic Psychology (1200€), 2020 and sharing data from qualitative research: A generosity in line with the expectation primer) Weizenbaum Series, 6. Workshop Grant that giving creates a warm glow in Fachgruppe Sozialpsychologie (250€), 2019 Rahal, R.-M. and Havemann, J. (2019). Sci- givers (Andreoni, 1989). Further, we ence in Crisis. Is Open Science the Solution? examine whether thermal patterns of MetaArXiv. guilt can predict generosity, in line with the expectation that people give to avoid

206 Lectures and Presentations Justice Is in the Eyes of the Beholder – Advancing Openness and Transparency in Eye-Tracking Evidence on Balancing Norma- Scientific Contributions (invited) (since 2017) tive Concerns in Torts Cases Leiden University 38th Annual Meeting of the European Group February 2020 2017 of Process Tracing Studies Dresden, Germany Advancing Openness and Transparency in Eyes on Morals: Investigating the Cognitive June, 2019 Scientific Contributions (invited) Processes Underlying Moral Decision- Mannheim University Making via Eye-Tracking Finding, Using, and Making Open Educational February 2020 36th Annual Meeting of the European Group Resources of Process Tracing Studies Meeting of the Society for the Improvement From Crisis to Credibility: An Overview of the Galway, Ireland of Psychological Science Open Science Movement June, 2017 Rotterdam, The Netherlands General Meeting of the European Association July 2019 of Social Psychology Using Registered Replication Reports to ad- Krakow, Poland, vance the Scientific Discourse: The Example Eyes on Morals: Investigating the Cognitive 2020 (conference cancelled) of Intuitive Cooperation (invited) Processes Underlying Moral Decision- 16th Conference of the German Social Psy- Making via Eye-Tracking Your Lies Leave Me Cold: Using Infrared chology Section, Ulm 27th Subjective Probability, Utility, and Deci- Thermal Imaging to Assess Implicit Decep- September 2017 sion-Making Conference tion Detection Amsterdam, The Netherlands 52nd Congress of the German Psychological 2018 September 2019 Society (DGPs) / 15th Austrian Psychological Society Congress (ÖGP) Eyes on morals: Investigating the cognitive Science in Crisis: Open Science as a Reform Vienna, Austria, processes underlying moral decision making Movement (invited) 2020 (conference cancelled) via eye-tracking (invited) Wikimedia Germany, Berlin 8th Symposium on Biology of Decision Mak- September 2019 Your Lies Leave Me Cold: Using Infrared ing, Paris Thermal Imaging to Assess Implicit Decep- May 2018 Advancing Openness and Transparency in tion Detection Scientific Contributions (invited) 62nd Meeting of Experimental Psychologists Openness and Transparency: Everyday Karlsruhe Institute of Technology, Karlsruhe (TEAP) Possibilities of Increasing Your Scientific September 2019 Jena, Germany, Contribution (invited) 2020 (conference cancelled) 14th Doctoral Congress, Graz Using Economic Games to Uncover Cognitive June 2018 Processes Section Meeting Personality Psychology Teaching Eyes on Morals: Investigating the Cognitive (DPPD) Processes Underlying Moral Decision- Dresden, Germany Making via Eye-Tracking September 2019 2017, & 2019 51st Congress of the German Psychological Center for Economics and Neuroscience at Society (DGPs) A Practical Introduction to Open Science the University of Bonn Frankfurt am Main, Germany Framework Tools (invited) Introduction to Eye-Tracking (graduate lec- September, 2018 Max Planck Institute for Demographic Re- ture), Introduction to Social Decision-Making search, Rostock (graduate lecture), Empirical Paradigms in Eyes on Morals: Investigating the Cognitive October 2019 Morality and Prosociality Research (graduate Processes Underlying Moral Decision- lecture) Making via Eye-Tracking Eyes on morals: Investigating the cognitive Conference on Decision Sciences processes underlying moral decision making 2018 Konstanz, Germany via eye-tracking (invited) Goethe University Frankfurt September, 2018 Heinrich Heine University, Düsseldorf Experimental Psychology (undergraduate November 2019 course) Eyes on Morals: Investigating the Cognitive Processes Underlying Moral Decision- 2019, 2020 Making via Eye-Tracking Your Lies Leave Me Cold: Using Infrared Tilburg University Associatie van Sociaal Psychologische Thermal Imaging to Assess Implicit Decep- Social Cognition (undergraduate course, Onderzoekers Conference tion Detection course coordinator) Nijmegen, The Netherlands Associatie van Sociaal Psychologische December, 2018 Onderzoekers Conference 2020 Wageningen, The Netherlands Cusanuswerk 2019 December 2019 Simulations and Experiments on Economic Decision-Making (spring school course, Eyes on morals: Investigating the cognitive 2020 course coordinator) processes underlying moral decision making via eye-tracking (invited) Prosocial Preferences Condition Decision 2020 (cancelled) Amsterdam Cooperation Lab, Vrije Universite- Effort and Ingroup Biased Generosity in German Academic National Foundation it Amsterdam Intergroup Decision-Making (invited) Of Detective Work and Storytelling: Evidence February 2019 Leiden University in the Empirical Sciences (spring school February 2020 course, course co-coordinator)

207 D. Research Portraits

Online Resources Professional Activities Good Science is Reproducible Science Science in the Classroom, 2017. https://www. Associate Editor scienceintheclassroom.org/research-papers/ Collabra: Psychology good-science-reproducible-science.

Next-Generation Researchers and Open Ad hoc Reviewer Science at the University (blog post) Rahal, R.-M., Fischer, C. and Behrens, S. Journal of Experimental Psychology: Learn- (2019). Generation R. https://genr.eu/wp/ ing, Memory, and Cognition, Judgment and next-generation-researchers-and-open- Decision Making, Journal of Behavioral and science-in-the-university/ Experimental Economics, Acta Psychologica, Philosophical Psychology, PLOS ONE, Col- Open for Insight (online course) labra: Psychology, Social Cognition https://www.tilburguniversity.edu/research/ open-science-community/open-education-lab/open-insight, 2020. Grant Reviewer National Science Center Poland. Fellowship Free Knowledge Bachelor’s Thesis Supervision

Calibrating the Moral Compass between Memberships the Virtue of Many and the Wisdom of One: An Inquiry into the Informational Effects of European Association for Decision Making, Descriptive Norms on Moral Dilemma Reso- Society for Judgment and Decision Mak- lution in Real-Life Context (Goethe University ing, German Psychological Society (DGPs), Frankfurt, 2018) Economic Science Association, Society for the Improvement of Psychological Science, Facial Temperature as Social Cues of Trust- Associatie van Sociaal Psychologische worthiness (Tilburg University, 2019) Onderzoekers

Norm Violation Expectations and Third-Party Punishment (Tilburg University, 2019)

Noise in Social Dilemmas (Tilburg University, 2019, 2020)

Master’s Thesis Supervision

Cold Lies? A Physiological Approach to Detect Deception (Tilburg University, 2019, co-supervision)

Social Thermoregulation: A Multi-Lab Collab- oration (Tilburg University, 2020)

Workshops (PhD level)

Finding, Using, and Making Open Educational Resources (SIPS, Rotterdam, 2019). https:// osf.io/7t98s/

A Practical Introduction to Open Science Framework Tools (MPIDR, Rostock, 2019). https://osf.io/59tu3/

208 Sebastian Riedmiller

General statement bias and tax-evasion behavior more closely. However, the validation of the In October 2020, I joined the Max Planck survey scales was unsuccessful, since Institute for Research on Collective no distinguishing of the participants Goods as a doctoral candidate within between the justifiability of private and the IMPRS BeSmart, hosted together business income-tax evasion was found. with the University of Cologne’s Grad- Surprisingly, when analyzing average uate School of Economics. Within the tax morale, the findings even contra- MPI, I became a member of the EEG dict the self-serving bias as a higher led by Matthias Sutter, whose research opportunity to evade based on employ- focus aligns with my interests in be- ment status led to lower experimental havioral and experimental economics. tax evasion. Thus, further research During my Master’s studies, I worked in this direction is necessary, namely as a research assistant at the Chair of research on how the self-serving bias Finance at the University of Münster, led influences tax evasion to derive mean- Contact by Thomas Langer, where I engaged in ingful policy implications to reduce tax ongoing projects on behavioral eco- evasion by exploiting this relationship. [email protected] nomics and helped design and conduct an experiment. I hold a Bachelor https://www.coll.mpg.de/ and a Master’s degree in economics Research Agenda sebastian-riedmiller from the University of Münster. My plan for future research is to explore the research areas of the EEG by en- Master’s Thesis gaging in current projects of my fellow colleagues, to begin with. In this regard, I For my thesis, I developed a new am most interested in investigating how scenario-based survey approach for fairness, morale, and social norms pro- tax morale, measured as individual mote efficient social interactions or lead attitudes towards private and business to anti-social behavior. Furthermore, I income-tax evasion in order to test the am highly interested in continuing the existence of a self-serving bias. Accord- most promising research of the EEG ing to this bias, tax evasion is perceived concerning the development of eco- as justifiable if it is exploitable for nomic preferences of children and their oneself. Thus, self-employed taxpayers, influence on the children’s future life. employees with additional cash income, and employees without additional cash income should show differences in their tax morale, based on scenarios of private and business income tax evasion. Data from an online survey support the bias, since subjects with different opportunities to evade perceive tax evasion as justifiable only in scenarios where they can exploit in the real world themselves. Hence, employees who face tax withholding on average show significantly higher tax morale compared to self-employed individuals. In a next step, the survey approach was applied during an online experiment to validate the survey approach and to analyze the relationship between the self-serving

209 D. Research Portraits

210 Angelo Romano

Overview solution to combating parochialism, reputation-based indirect reciprocity. I joined Matthias Sutter’s team at the This project was published in a top-tier MPI on 1 October 2017 and left the international journal (Romano, Balliet, institute at the end of December 2019. Yamagishi and Liu, Parochial Trust and Before that, I was a double PhD student Cooperation Across 17 Societies, PNAS). at the University of Turin and the Vrije Universiteit Amsterdam. During my Secondly, together with Matthias Sutter, two years at the Max Planck institute, we conducted a large cross-societal I worked on two main topics: (1) the experiment to investigate parochial co- cross-cultural variation of trust and operation in 42 societies. In this project, cooperation within and between nations, we observed cooperation in a prisoner’s and (2) the development of cooper- dilemma with ingroup, outgroup, and ation in young children and adults. unidentified partners. In a first paper, we found national parochialism is a ubiq- Contact (1) The Cross-Cultural Variation of uitous phenomenon around the globe: Trust and Cooperation Within and it is present to a similar degree across [email protected] Between Nations societies and cultures, is independent of distance to common ancestry, and https://www.coll.mpg.de/angelo-romano Individuals tend to trust – and coop- occurs both when decisions are private erate more with – ingroup members, or public. These findings inform existing compared to outgroup members and theories of parochialism and warn us strangers. This phenomenon is widely about an obstacle to the provision of investigated across different disci- global public goods. The manuscript plines. However, there is still much is currently under review at Nature discussion in the trust and cooper- Communications. In a second project, ation literature on why and in which we investigated whether individual circumstances this behavior occurs. differences in political ideology affect cooperation and national parochialism During my stay at the MPI, I finalized across societies. We found that liberals, the revision of a project where I run compared to conservatives, cooperate a cross-cultural experiment involving more with others (independently of 17 countries to examine questions on group membership) and discriminate why, who, and where individuals tend to less. The manuscript is currently in favor ingroup members, compared to preparation and will be submitted as an outgroup members. To address these invited paper for a special issue of Philo- questions, I investigated the role of sophical Transactions of Royal Society B. reputation, social preferences, gender, and cultural aspects of specific societ- (2) The Development of Cooperation in ies, in a trust game. We found people Young Children and Adults were motivated to trust and cooperate more with their ingroup than harm the In another line of research, I investigat- outgroup. We found that reputational ed the roots of cooperation in young concerns increased cooperation with children. This project was a collabora- both ingroup and outgroup members. tion with other team members (Zvoni- We also found that people who are mir Bašić, Claudia Zoller, and Matthias dispositionally cooperative are less Sutter). We successfully conducted a parochial and more universal in their large-scale lab-in-the-field experiment, cooperation. Overall, our findings designed to test hypotheses on the suggest that in all societies there exist existence, relative importance, poten- people whose cooperation transcends tial development, and prerequisites of group boundaries and provides a cooperation and its three fundamen-

211 D. Research Portraits

tal pillars (direct reciprocity, indirect al., 2020), a project where I investigate Awards reciprocity, and altruistic punishment) the interplay of conformity and reciproc- Otto Hahn Medal (Max Planck Society; 2019) in young children. To do so, we de- ity to promote cooperation (Romano & vised a highly-controlled experimental Balliet, 2017), and a project on the rela- ASPO Award for Best Dissertation in the Netherlands (ASPO; 2018) design to study cooperation of young tion between reputation and group mem- children from 19 kindergartens located bership (Romano, Balliet and Wu, 2017). Junior Career Award (Vrije Universiteit Am- sterdam; 2018) in Tyrol, Austria. The cooperation task of the experiment was run on tablets Best Dissertation in Social Psychology in Italy using new animated software, designed Publications (since 2017) (Italian Association of Psychologists - AIP; 2018) and programmed exclusively for the th purposes of this study. Cooperation Articles in Peer-Reviewed Journals Best Presentation Award (17 International Conference on Social Dilemmas; 2017) was assessed by means of an iterated Romano, A., Bortolotti, S., Hofmann, W. two-person prisoner’s dilemma, which Praxmarer, M. and Sutter, M. (forthcoming). was specially adapted for children. We Generosity and Cooperation across the Life found that altruistic punishment was Span: A Lab-in-the-Field Study. Psychology and Aging. the only mechanism that promoted cooperation in young children. Although Romano, A., Sutter, M., Liu, J. and Balliet, D. (forthcoming). Political ideology, cooperation, children were able to reciprocate others and national parochialism across 42 nations. directly and indirectly, we did not find Philosophical Transactions of the Royal that reciprocity had a positive significant Society B. effect on cooperation. We are currently Romano, A., Sutter, M., Liu, J., Yamagishi, in the process of writing up two papers T. and Balliet, D. (forthcoming). National from the collected data of this project. parochialism is ubiquitous around the globe. Nature Communications. (conditionally accepted). In a second project, in collaboration with other team members (Matthias Sutter, Wu, J., Balliet, D., Peperkoorn, L. S., Romano, A. and Van Lange, P. A. (2020). Cooperation Stefania Bortolotti, and Matthias Prax- in Groups of Different Sizes: The Effects of marer), we investigated how cooperation Punishment and Reputation-Based Partner and generosity develop across age (18 Choice. Frontiers in Psychology, 10, 2956. to 90 years). To do so, we ran a lab-in- Romano, A., Balliet, D., Yamagishi, T. and Liu, the-field experiment in Austria. We found J. H. (2018, online first). Reply to De Dreu: that individuals used age as key infor- Shared Partner Nationality Promotes Ingroup Favoritism in Cooperation. Proceedings of the mation to condition behavior. Generos- National Academy of Sciences. ity was greater among older adults in response to younger and older partners, Romano, A., Balliet, D., Yamagishi, T. and Liu, J. H. (2017). Parochial Trust and Coopera- relative to middle-aged partners. Among tion Across 17 Societies. Proceedings of the younger adults, cooperation was greater National Academy of Sciences, 114, 12702- in response to middle-aged and older 127707. partners relative to their own age cohort. Romano, A. & Balliet, D. (2017). Reciprocity All age groups expected less cooper- outperforms conformity to promote coopera- ation from young partners than from old- tion. Psychological Science, 28, 1490–1502. er and middle-aged partners. However, Romano, A., Balliet, D. and Wu, J. (2017). relative to young adults, older adults Unbounded Indirect Reciprocity: Is Reputa- tion-Based Cooperation Bounded by Group were more cooperative with young Membership? Journal of Experimental Social partners. The findings of these project Psychology, 71, 59-67. were published in Psychology and Aging.

(3) Other Projects Manuscripts under Review or in Preparation Bašić, Z., Bindra Parampreet, Glätzle-Rützler, Over the past three years, I have been D., Romano, A., Sutter, M, and Zoller, C. The Roots of Human Cooperation. Manuscript in involved in several other projects. These preparation. projects are still related to cooperation Romano, A., Bašić, Z., Zoller, C., Bindra, within and between groups, including an P.C., Glätzle-Rützler, D., Sutter, M. Altruistic investigation on the effects of punish- Punishment in Young Children. Manuscript in ment in groups of different sizes (Wu et preparation.

212 Johannes Rottmann

Since October 2020, I have been at the view. As for my dissertation topic, I can institute as a doctoral student and a imagine testing (behavioral) assump- participant in the IMPRS on Behaviorally tions put forward by legislative bodies, Smart Institutions. At the same time, I administrative authorities, or courts am affiliated with the University of Bonn with an economic toolset. I also wish as a Research Fellow at the Institute for to continue working in fields of the law Commercial and Economic Law. Before wherever the law governs the interaction joining the MPI, I studied law, economics of people with each other, as private or (LL.B. in law & economics), and political public entities, in order to maximize their sciences (Certificate in Social Sciences well-being, such as market design and and Humanities) at the University of competition. Bonn and the Institut d’Études Poli- tiques de Paris (Sciences Po). I recently graduated from the University of Bonn Publications (since 2017) and passed the first state exam in law Contact before the Cologne Higher Regional Articles in Peer-Reviewed Journals Court. During my studies, I have provid- Rottmann, J. and Goehsl, J.-F. (forthcom- [email protected] ed research and teaching assistance ing 2020). Nichtkoordinierte Effekte in der for Professors Beurskens and Zimmer Europäischen Zusammenschlusskontrolle im https://www.coll.mpg.de/ in civil, corporate, and competition law. Lichte der ‘CK Telecoms’-Entscheidung des johannes-rottmann Europäischen Gerichts [The non-coordinated effects doctrine in European merger control Lately, I have been interested in the law after the General Court’s ‘CK Telecoms’ implications of digitization in contrac- ruling]. Zeitschrift für Wettbewerbsrecht, 4. tual relationships and the application of civil law. In a recent publication, Journal Articles (not peer-reviewed) we touched on the question whether Rottmann, J., Goehsl, J.-F. and Schaut, M. new technological opportunities that (forthcoming 2020). Tagungsbericht enable the self-enforcement of a party’s ‘Regulierung für Algorithmen [Conference (alleged) right regarding a connected Debriefing – ‘Regulation for Algorithms’], Juristenzeitung. device comply with the laws of property and possession, or whether they poten- Rottmann, J. and Schmid, J. (2020). Fortge- schrittenenhausarbeit – Zivilrecht: Besitz- tially infringe on the primacy of public schutz bei Fernzugriff auf vernetzte Güter law enforcement. Another focus of my [Case Study: Remote access to connected current work lies in the field of compe- devices as unlawful (digital) interference with tition law and economics, particularly possession?], Juristische Schulung, 849-855. in concentrations of undertakings and Rottmann, J., Goehsl, J.-F. and Schaut, M. merger control. In an upcoming arti- (2020). Tagungsbericht zum kartellrechtli- cle, we analyze the application of the chen Themenblock der Tagung ‘Regulierung für Algorithmen [Conference Debriefing – non-coordinated effects doctrine by the ‘Regulation for Algorithms‘: Topics in Compe- European Commission and the General tition Law], Neue Zeitschrift für Kartellrecht, Court, evaluating its conformity with the 528-530. underlying economic theory, which also Rottmann, J. and Goehsl, J.-F. (2019). Zentra- involves a minor statistical assessment. le Preissetzung auf Transaktionsplattformen der Sharing Economy – Der Fall Uber [Cen- tralized price setting on matching platforms Based on my new affiliation with the in the Sharing Economy – The case of Uber], institute, I am committed to study Wirtschaft und Wettbewerb, 348-355. quantitative methods to gain a deeper Rottmann, J. and Beurskens, M. (2018). understanding of individual behavior as Das Ende der Gesellschaft bürgerlichen a regulatory matter of law, both from Rechts [The termination of a civil law partner- a theoretical and an empirical point of ship], Juristenzeitung, 272-277.

213 D. Research Portraits

214 Daniel Salicath

Overview dimensions, such as age, economic background, education level, employ- I joined the institute on 1 October 2017. ment status, and ethnicity. We overcome Prior to joining the EEG group, I worked these previous limitations and will have as a consultant assisting the All Children results ready by the end of 2020. We Reading (ACR) project team at School- have so far collected data from over to-School International in San Francisco. 1,500 students and plan to finish the I hold a Bachelor degree in economics data collection by the fall of 2020. from the Université Toulouse 1 Capitole and a Master’s Degree of Science (Inter- Social Norms and Beliefs about Health national and Development Economics) Benefits from the University of San Francisco. My research in the past years has focused Arsenic-contaminated groundwater on two main projects: (i) heterogeneity is consumed by approximately 100 in effort provision; (ii) and social norms million people worldwide and has Contact and beliefs about health benefits. severe health consequences. Under- standing how information is leading [email protected] Heterogeneity in Effort Provision to change in behavior has long captured the attention of economists. https://www.coll.mpg.de/daniel-salicath Understanding how to motivate people However, there is still little evidence to provide effort is of key importance for on how information interventions the success of firms and the econo- work, especially in a health context. my at large. The idea stems from the observation that not everybody is best Using an RCT conducted with over 2,500 motivated by the same type of incen- villagers in rural Bihar, India, we (with tives. Some people thrive and express Priyam and Sutter) test the effective- their best potential in competitive ness of an information-based interven- environments; others instead choke tion, focused on spreading awareness under such pressure. Some people about arsenic in the groundwater and are diligent and work hard regardless mitigation techniques. We use this of the environment, while others need context to study how social norms monetary rewards to be motivated. and beliefs affect how people act on Scientific evidence offers surprisingly new information about safe water use. little guidance in understanding the Data collection is completed, and the underpinnings of this heterogeneity. preliminary results will be ready soon.

I have worked on a study where we test whether there is an interaction Research Agenda 2021-2024 between incentives and traits/personal characteristics. Together with Bašić, My research agenda for the coming Bortolotti, Cappelen, Gneezy, Schnei- years revolves around two main areas: der, Sutter, and Tungodden, we run a lab-in-the-field experiment with high- Scarcity and decision-making. Together school students in Germany to gain with Sutter, I plan to run lab experi- a better understanding of how pupils ments in Kenya aimed at understanding with given traits respond to different biases, conflict, and behavior under compensation contracts. Most of the scarcity among the poor. The project experimental evidence accumulated in uses the payday of factory workers as the last decades critically relies on stud- an economic shock to identify when ies conducted with college students, participants are influenced by scarcity. which presents a limited variability along This project aims to contribute to an many important sociodemographic ongoing debate on why the poor often

215 D. Research Portraits

engage in suboptimal behavior by providing causal evidence on how and why scarcity affects decision-making.

Heterogeneity in effort provision and career choices. We intend to extend the study on heterogeneity in effort provision to follow the students over time and career choices. The idea is to test whether choices about the different incentive schemes are predictive for life choices. We plan to recruit the participants for an online survey to investigate this research question.

Work in Progress Bašić, Z., Bortolotti, S., Cappelen, A., Gneezy, U., Salicath, D., Schneider, S. O., Sutter, M., Tungodden, B. (ongoing) Heterogeneity in Effort Provision: Evidence from a Lab-in-the- Field Experiment.

Lectures and Presentations (since 2017)

2018

Improving Educational Outcomes Through Goal-Setting, Incentives, and Self-Help Groups: Experimental Evidence from Me- dellín, Colombia Inaugural Conference of the Experimental Economics Group, Bonn May 2018

Improving Educational Outcomes Through Goal-Setting, Incentives, and Self-Help Groups: Experimental Evidence from Me- dellín, Colombia ESA World Meeting, Berlin June 2018

2019

Social Norms and Beliefs about Health Bene- fits: Experimental Evidence from Bihar, India (with Shambhavi Priyam) Spring School in Behavioral Economics, San Diego March 2019

216 Ali Seyhun Saral

Research Profile The project entitled The Evolution of Conditional Cooperation (Saral, work in I joined the institute as the lab man- progress) examines the evolutionary ager in 2018. After receiving my PhD success of conditionally cooperative from the University of Trento in 2019, strategies by using an agent-based additionally I joined the Experimental evolutionary model, and it aims to link Economics Group at the institute. the experimental results in the literature with the evolutionary viability mea- In addition to providing technical exper- sures obtained by the simulations. tise in the experimental social sciences, and to following the state-of-the-art The project entitled Presumptive Rec- methods, I conduct research on the top- iprocity in Dictator Games (Andreozzi, ics of cooperation, collective choice, so- Faillo, Saral, work in progress) approach- cial preferences, and social production. es a different take on dictator games, I use a variety of methods such as lab as it questions whether reciprocal Contact experiments, online experiments, analyti- tendencies play a role in giving that is cal methods, and agent-based modeling. observed by us. To investigate, we use [email protected] an experimental design to elicit condi- Software for Experimental Social tional giving of participants conditioned https://www.coll.mpg.de/ali-seyhun-saral Sciences on their opponents’ giving preferences.

I actively work with the researchers at Social Choice and Social Production the institute in order to provide them with technical expertise and to give In line with the research on cooper- them training in methods and technical ation, I investigate on how people topics. Based on our previous experi- aggregate preferences and how ence, we built a tool for experimenters they can better cooperate using dif- to facilitate multi-language experiments ferent aggregation mechanisms. using z-Tree, a common software for building experiments. In the adjunct pa- The project, entitled Social Choice per to the software (Saral and Schröter, for Social Production (Saral, Hennes, 2019), we describe potential technical work in progress), experimentally and challenges to re-using the software computationally investigates several built for experiments, and we introduce voting procedures and their effect on our tool to overcome those issues. the performance of individuals collaborating on a peer-production good. Reciprocity and Cooperation

The research I conduct aims to un- Publications (since 2017) derstand how cooperation arises and in to what extent it is sustainable. Articles in Peer-Reviewed Journals Specifically, I investigate the role of Andreozzi, L., Ploner, M. and Saral, A. S. reciprocity on human cooperation. (2020). The Stability of Conditional Coopera- tion: Beliefs Alone Cannot Explain the Decline The paper On the Stability of Conditional of Cooperation in Social Dilemmas. Scientific Reports, 10, 13610. Cooperation (Andreozzi, Ploner, Saral, 2020) investigates the robustness of Saral, A. S. and Schröter, A. M. (2019). zBrac – A Multilanguage Tool for z-Tree, Journal reciprocal preferences using a lab ex- of Behavioral and Experimental Finance, 23, periment. It aims to disentangle the role 59-63. of reciprocal preferences and the role of learning on the decline of cooperation.

217 D. Research Portraits

Lectures and Presentations (since 2017)

2017

Stability of Conditional Cooperation Economic Science Association European Meeting, WU Wien September 2017

Evolution of Conditional Cooperation Venice Doctoral Workshop on Economics and Management, Ca’ Foscari University of Venice September 2017 z-Tree Crash Course Ca’ Foscari University of Venice October 2017

Reciprocity in Dictator Games Florence-Constance join Workshop on Behavioral and Experimental Social Sciences, University of Florence November 2017

2019

Data visualization in R Workshop JDMx Meeting 2019, University of Trento June 2019

Stability of Conditional Cooperation Center for Empirical Research in Behavioral Sciences, University of Erfurt, Seminar November 2019

Stability of Conditional Cooperation Economic Science Association European Meeting, Burgundy School of Business, Dijon September 2019

218 Julia Sasse

Summary Report motivates intervention in a series of experiments (work in progress-a). I have been a Senior Research Fellow in Utilizing the context of a third-party the “Moral Courage” research unit since punishment game and different tech- May 2017. Broadly speaking, our work niques of anger induction, we test centers around investigating when, why, whether anger leads to intervention by and how uninvolved bystanders inter- affecting the perception or weighting vene against witnessed moral trans- of costs and benefits of intervening. gressions, despite potential costs to themselves. Within this group, I investi- Two other projects are dedicated to gate the functions of emotions in moral gaining a better understanding of courage, with a focus on anger. In order the communicative function of anger to obtain a comprehensive understand- expression. In Sasse and Baumert ing of these functions, I argue that it is (work in progress-b), we test whether necessary to differentiate between expe- witnesses to norm transgressions use Contact rienced and expressed emotions and to anger expression as a substitute or investigate their effects not only within complement of behavioral interven- [email protected] a person, but within social interaction, tion and investigate situational and as situations affording moral courage dispositional factors that may impact https://www.coll.mpg.de/julia-sasse are social by nature. In my research, I this decision. This project is financially rely on and aim to advance concepts supported by an EASP Seedcorn Grant. and theories from social and personality If we assume a communicative function psychology. I use various formats of of anger expression, it is pivotal not to investigation, such as online surveys, ex- limit its investigation to the expresser, periments, and behavioral observations but to consider its effect on the perceiv- in the lab, and I apply different meth- er. Hence, in a second project, together ods to study emotions, ranging from with Benning, Heerdink, and Baumert self-reported experience to video-rated (work in progress), I investigate how expression and experimental emotion observers judge the norm transgression induction to enable causal inferences. and evaluate the intervener, depending on whether intervention is carried While most theoretical models of moral out in a neutral or angry manner. courage assume a key role of emotions, this role is not well understood to date. Apart from my research program on In a behavioral observation study, my emotions in moral courage, I have been collaborators and I investigated vari- involved in several collaborations. I am a ous theoretically relevant emotions in co-PI on a large, interdisciplinary project response to a witnessed norm violation titled “Personalized AI-based Interven- in the laboratory (Sasse et al., in press). tions Against Online Norm Violations: We could show that witnesses first and Behavioral Effects and Ethical Implica- foremost responded by experiencing tions”, funded by the Institute for Ethics anger, which in turn motivated behav- in Artificial Intelligence at the Technical ioral intervention. Moreover, we found University Munich. Within this project, I evidence that witnesses also expressed serve as the day-to-day PhD supervisor anger to communicate disapproval. to Niklas Cypris, whose work is dedicat- These findings constitute the basis ed to designing effective interventions for my further investigations into the against online hate speech, informed motivational and the communicative by insights from social psychology. As function of anger in moral courage. the day-to-day PhD supervisor to Daniel Toribio-Flórez, I have been involved in Together with Anna Baumert, I am a project on the effects of situational currently investigating how anger ambiguity on intervention against norm

219 D. Research Portraits

transgressions (Toribio-Flórez et al., Baumert, A., Li, M., Sasse, J. and Skitka, L. Work in Progress 2020) and a recent study on the effects (2020). Standing Up Against Moral Trans- gressions: Psychological Processes of Moral Baumert, A., Halmburger, A., Küchler, G., of governmental physical distancing Courage. Journal of Experimental Social Sasse, J. and Wagner, J., Personality Char- rules in response to the COVID-19 Psychology, 88, 103951, 1-3. acteristics of Moral Courage: An Extreme Groups Approach. pandemic on social norms (Fahrenwaldt, Ackerman, R. A., Chmielewski, M., Adler, J. M., Toribio-Flórez, et al., 2020). Also in the Bach, B., Kongerslev, M. T., Baumert, A., … and Sasse, J., and Baumert, A. (Work in prog- context of the COVID-19 pandemic, Hopwood, C. J. (2018). Open Peer Commen- ress-a). The Causal Effects of Anger in Moral Küchler, Niesta Kayser, Baumert, and tary and Author’s Response. European Journal Courage. of Personality, 32(5), 525–624. I (work in progress) are investigating Sasse, J. and Baumert, A. (work in prog- situation and dispositional predic- Baumert, A. and Sasse, J. (2018). Personality ress-b). It Does Not Have to Be Action: Anger Expression as Moral Courage. tors of high-risk prosocial behavior. as Interpersonal Dynamics: Understanding Within-Situation Processes and Their Recur- Sasse, J., Benning, V., Heerdink, M. and rence Across Situations and Time. Invited Baumert, A. (Work in progress). Objecting I have further contributed to two note- Commentary. European Journal of Personality, to Norm Violation With Emotions – Fire or 32, 525-624. worthy advancements in the under- Backfire on Intervention Intentions? standing of moral courage. Together Sasse, J., Spears, R. and Gordijn, E. H. with Anna Baumert, Mengyao Li, and (2018). When to Reveal What You Feel: How Linda Skitka, we edited the special issue Emotions Towards Antagonistic Out-Group and Third Party Audiences Are Expressed Lectures and Presentations “Standing Up Against Moral Violations” Strategically. PLOS ONE, 13(9). in the Journal of Experimental Social (since 2017) Psychology (Baumert, Li, Sasse, Skitka, 2019 2020). Under the lead of Mengyao Li, Edited Volume we have further engaged in theoretical Baumert, A., Li, M., Sasse, J. and Skitka, L. Zivilcourage Verstehen – Einblicke in Erkenntnisse und Herausforderungen work on the concept of moral courage. (Eds.) (2020). Standing Up Against Moral Transgressions: Psychological Processes Psychologischer Forschung We recently finalized an extensive of Moral Courage. Journal of Experimental Courage!Congress 2019, Meißen, Germany review paper which brings together Social Psychology. [special issue] November 2019 insights from a broad range of research areas. Based on the synthesis of the 2018 Under Review various literatures, we developed a The Role of Anger in Moral Courage (with parsimonious model of moral courage. Li, M., Sasse, J., Halmburger, A. and Bau- Halmburger, A., & Baumert, A.) mert, A. (2020). Standing Up Against Moral Consortium of European Research on Emo- Transgressions: An Integrative Perspective tion conference, Glasgow, United Kingdom on the Socio-Psychological Antecedents and April 2018 Scholarships and Honors Barriers to Moral Courage. Why Do People Act Morally Courageous? 2019 Sasse, J., Nazlic, T., Alrich, K., Frey, D. and Exploring the Role of Anger Best Poster Award, DGPs Fachgruppentagung Baumert, A. (2020). Mitigation of Justice Con- University of Groningen, Department of Sozialpsychologie, Cologne, Germany flicts: Effectiveness of Qualifying Subjective Justice Views as an Intervention Technique in Psychology, Groningen, The Netherlands June 2018 2019-2022 Comparison to Empathy Induction. “Personalized AI-based Interventions Against A Social Identity Approach to (Multiple) Online Norm Violations: Behavioral Effects Identities and Ethical Implications”, funded by the Working Papers Workshop on Multiple Identities, Weimar, Institute for Ethics in Artificial Intelligence, Sasse, J., van Breen, J., Spears, R. and Germany Co-PI; principal investigators: A. Baumert, J. Gordijn, E. (2020). When Do Women Show July 2018 Grossklags (500,000 Euro) Their Anger at Sexism? The Rocky Road from Experience to Expression. Why do People Act Morally Courageous? 2020 Exploring the Role of Anger “It Doesn’t Have to be Action: Anger Expres- Toribio-Flórez, D., Sasse, J. and Baumert, A. (with Halmburger, A., & Baumert, A.) sion as Intervention Against Moral Transgres- (2020). Third-Party Punishment under Situ- European Conference on Personality, Zadar, sions” EASP Seedcorn Grant (3,000 Euro) ational Uncertainty: The Moderating Role of Croatia Justice Sensitivity. July 2018 Fahrenwaldt*, A., Toribio-Flórez*, D., Sasse, Publications (since 2017) J. and Baumert, A. (2020). The Effect of Fueling Moral Courage: The Role of Experi- Governmental COVID-19 Measures on enced and Expressed Anger (with Halmburg- Articles in Peer-Reviewed Journals Physical Distancing Norms and Intervention er, A., & Baumert, A.) against Deviations: A Case Study in Germany. DGPs Conference Frankfurt, Germany Sasse, J., Halmburger, A. and Baumert, A. (*shared first authorship) September 2018 (forthcoming). The Functions of Anger in Moral Courage – Insights from a Behavioral Study. Emotion.

220 2017

Caught in the Middle? Exploring the Role of Collective Benefits and Individual Costs in Women’s Willingness to Express Anger about Sexism (with van Breen, J., Spears, R., & Gordijn, E.) Meeting “Understanding the Winds of Change: Psychological Processes that change Individuals in Intergroup Conflict” Appingedam, The Netherlands June 2017

Better Quiet than a Complainer? Exploring Women’s (Un-)Willingness to Express Anger about Sexism (with van Breen, J., Spears, R., & Gordijn, E.) Fachgruppentagung Sozialpsychologie, Ulm, Germany September 2017

Teaching Winter Term 2018 Pädagogische und Entwicklungspsychologie [Educational and Developmental Psychology] Technical University Munich

Summer Term 2019 Development and Culture University of Osnabrück, Germany

Public Service Since May 2019 – Researcher Representative of the MPI for Research on Collective Goods – Ombudsperson of the MPI for Research on Collective Goods

Professional Activities

Memberships European Association of Social Psychology (EASP) Deutsche Gesellschaft für Psychologie (DGPs)

Guest Editor Journal of Experimental Social Psychology

Reviewer Journal of Experimental Social Psychology European Journal of Social Psychology Frontiers in Psychology Comparative Political Studies Europe’s Journal of Psychology

221 D. Research Portraits

222 Stefan Schmidt

Overview Research Agenda

In October 2019, I started as a PhD My plan for future research is to build student at the University of Cologne on seminal papers by Matthias Sutter and joined the Max Planck Institute on group decision- making and inter- for Research on Collective Goods as group behavior. I am very interested in a member of the EEG led by Matthias scrutinizing the underlying mechanisms Sutter. Already during my Master’s and determinants that lead individuals studies, I had worked as a research to alter their behavior depending on assistant for the EEG, where I engaged the social context. Also, I am heavily in ongoing research projects, and for interested in collaborating with my the IZA, where I supported the publi- colleagues in current projects on the cations department. I hold a Bachelor origins of effort provision and competi- and a Master’s degree in Economics tiveness in childhood. Both avenues will from the University of Bonn. My main add to the overall question of how, why, Contact research interests are in the areas of and when humans behave competitively behavioral and experimental economics. and antisocially instead of cooperatively. [email protected]

https://www.coll.mpg.de/stefan-schmidt Master’s Thesis

My thesis focused on an international dataset of children who grew up in alternative care. It reports on international experiences made in SOS Chil- dren‘s Villages and aims at fostering the creation of empirically supported policy measures that promote children’s short-term and long-term outcomes. The data analysis isolated numerous factors that are associated with educational attainment levels, the financial situation, and the resilience outcomes of care leavers during and after the care-leaving process. Major results show that education levels particularly depend on financial restrictions in the short term. Entering parenthood during the care-leaving process and stopping the financial support too early diminish the chances of accessing higher education and lower the expected future employment outcomes. Also, a stable and supportive social environment is shown to be extremely helpful in achieving higher outcomes over the course of life, in addition to fostering resilience. This encompasses stable relationships in, e.g., marriages, the support received from natural mentors, and frequent contact to the former SOS mother.

223 D. Research Portraits

224 Alexander Schneeberger

Summary Report between subjects and an artificial social group, while keeping all other factors, The main goal of my research is to including the applicable social norms, understand better the individual and fixed. Our experimental design allows contextual factors that cause individuals us to test how group identification to comply with the social norms of a affects compliance with group norms in specific social group. In recent times, an otherwise decontextualized setting. social identity theory has received Furthermore, we are able to investigate significant attention in economics. The how moral similarity between an indi- reason for this new interest in social vidual and a social group affects group identity theory is that it helps us under- identification. stand behavior that cannot be fully explained by standard economic theories. In Irlenbusch, Krupka, and Schneeberger The idea that individuals are members (work in progress), we examine how of specific social groups and gain utility past behavior influences present deci- Contact from complying with (or disutility from sion-making. Moral cleansing describes violating) the associated social norms a behavioral pattern according to which [email protected] provides a parsimonious explanation for individuals are more likely to behave many seemingly anomalous phenom- morally after acting in an immoral way. https://www.coll.mpg.de/ ena. Experimental evidence suggests While this behavior pattern is well-es- person/alexander-schneeberger that, among others, such a model might tablished, it is less clear why individuals provide the micro-foundations for social act in such a way. Models in economics, preferences, peer effects, framing, in general, argue that this pattern is and promise-keeping. In each of those the result of self-image concerns. The studies, the researchers showed that the role of social-image concerns has been behavior was consistent with the social neglected. In our online experiments, we norms of the salient social identity and evaluate the role of both self-image and that the treatment variations induced social-image concerns. To study the role behavior by changing the applicable of self-image concerns, we exogenously social norms. While it became clear that vary the number of available excuses for people, on average, respond to changes immoral behavior. To study the role of in the applicable social norms, it is less social-image concerns, we analyze how clear under which precise circumstanc- norm compliance and the applicable es individuals respond to such changes. social norms change in response to their This is an important research question, own prior behavior. Our experimental since it sheds light on when social design allows us to identify the behav- identities are likely to impact behavior ioral channels that lead to the moral and how they are acquired in the first cleansing pattern. place. In my PhD thesis, I contribute to a better understanding of this question by In Schneeberger and Schubert (work in examining how three factors influence progress), we examine whether word norm compliance. In particular, I exam- embeddings can be used to extract ine how group identification, the own the social cues contained in words. past behavior, and social cues influence Previous research showed that framing compliance with particular social norms. can be explained by changes in the applicable social norms. However, it is In Krupka and Schneeberger (work in less clear which words activate which progress), we examine how compliance social norms. In our study, we use word with group norms is affected by group embeddings to identify words that identification. In our online experiments, either make a certain social identity we exogenously manipulate group iden- more salient or a social norm more tification by varying the moral similarity restrictive. We subsequently use online

225 D. Research Portraits

experiments, in which we measure the behavior of primed individuals and the applicable social norms to test our method of extracting social cues.

Work in Progress Krupka, E. and Schneeberger, A., The Effect of Moral Similarity on Group Formation and Norm Compliance Irlenbusch, B., Krupka, E. and Schneeberger, A., The Effect of Self and Social Image on Conscience Accounting Schneeberger, A. and Schubert, M., Vectoriz- ing Social Cues

Lectures and Presentations (since 2017) 2017

The Impact of Personal and Social Norms on Sharing in Dictator Games 10th IMPRS Uncertainty Thesis Workshop, Gut Gremmelin

2018

Choosing the Right Social Norm: General Versus Group-Specific Social Norms 11th IMPRS Uncertainty Thesis Workshop, Ringberg

2019

The Effect of Moral Similarity on Group Formation and Norm Compliance 12th IMPRS Uncertainty Thesis Workshop, Lutherstadt-Wittenberg

Professional Activities Reviewer for

Journal of Judgment and Decision Making

226 Cornelius Schneider

Overview Along these lines, my first PhD project, “Preferences for Wealth Taxation – De- After studying economics and public sign, Framing, and the Role of Parti- policy at the Humboldt University and sanship” (Chirvi and Schneider, work the Hertie School of Governance in in progress) investigates how personal Berlin, I finished my Master’s degree preferences and political perceptions with a focus on public economics. Since shape the support for wealth taxation. 2016, I have been a Research Fellow at The taxation of wealth is of growing the Max Planck Institute on Research for importance in both the academic as well Collective Goods in a joint PhD program as the political debate. However, the with the University of Cologne (super- empirical literature on preferences for vised by Felix Bierbrauer and Christoph wealth taxation almost exclusively fo- Engel). Mainly applying experimental cused on either the emotionally loaded methods, my research interests center estate tax or rather general redistributive around questions of optimal taxation preferences. This project presents a new Contact and public finance in general. Specifical- investigation of how individuals want ly, I am currently working on preferences to tax wealth – particularly exploring [email protected] for wealth taxation, as well as explor- drivers beyond the well-documented ing potentially positive implications of misinformation. For this, we conducted https://www.coll.mpg.de/ evasion opportunities in tax regimes. a large-scale survey experiment, which cornelius-schneider Since I am approaching the end of my particularly tests for the presence of PhD, I plan on entering the job market framing effects, incidence concen- for economists in December 2020 in tration, and the role of wealth charac- order to pursue my academic career. teristics. We find that the exceptional opposition towards the estate tax is The Role of Personal Preferences and not applicable to other instruments of Perceptions for Public Economics net wealth taxation and only valid for A first line of my research addresses certain subgroups. Moreover, we present how personal preferences, (mis)per- evidence for opposition stemming from ceptions and norms can inform optimal an emotional load triggered by political (tax) policies. In recent research, the framing strategies: the mere name “es- strong normative assumptions imposed tate tax” leads to a significantly higher by standard models of optimal taxation rejection in comparison to other equiv- became subject to empirical investi- alent wealth tax instruments absent of gations. Thus far, objective functions this frame. mostly follow either purely utilitarian or Within the same realm of research, Rawlsian rationales. If normative criteria two ongoing projects are worth men- (i.e., for redistribution) are considered, tioning. “Labor Supply Implications of this is usually based on philosophical a Negative Income Tax: The Role of reasoning or aims for Pareto efficiency. Egoistic Beliefs and Rational Prefer- Furthermore, the utilitarian approach ences” (Schneider and Vogel, work in understates the view that an economic progress) explores, both theoretically system might not only be judged by its and experimentally, the specific role allocative achievements, but also by of beliefs and social preferences on the procedures under which it operates. the chances of success of a negative Therefore, more current research aims income tax (also known as “univer- to consider multiple dimensions of sal basic income”). If individual labor normative criteria from surveys, exper- supply depends strongly on the beliefs iments, and existing robust policies, in about another’s labor supply, then the order to develop objective functions that discussion about a negative income tax incorporate prevailing public views. should not exclusively focus on bud-

227 D. Research Portraits

getary constraints, but should also take This, in turn, increases labor supply (due how this variation impacts taxable labor beliefs and social norms into account. to increased marginal costs of leisure). income. Further, I want use exogenous This increased labor supply might even variation in the timing of the Panama In a more interdisciplinary attempt offset the negative returns from the and Paradise papers, in order to study within Law and Economics, the project evaded taxes and consequently might causally the impact of increased percep- “Public Opinion and Courts” (Langen- increase the overall tax revenue. There- tion of tax audits on labor supply and bach and Schneider, work in progress) fore, this research agenda wants to chal- tax revenue. Finally, I will use exogenous studies the effect court rulings can have lenge the long-standing assumption that variation in the German Länder fiscal on shaping public opinion. Whereas the tax evasion leads to a reduced overall equalization scheme (Länderfinanzaus- literature has so far focused on the U.S. tax return and aims to adopt a broader gleich), which has shown to reduce tax Supreme Court, this study accounts for scope on the question of tax evasion enforcement (i.e., the number of tax the multi-level European court system. and social costs. To what extent does an auditors), as an instrument to extract The study particularly aims to answer opportunity to evade increase labor sup- causally the effect of audit probability the question whether it matters that cas- ply and thus counteract revenue losses? on labor supply and tax revenue. es can have different origins in the Eu- ropean court system, and whether this In an initial experiment, we implement- also matters for the authority of a ruling. ed an original real-effort experiment in Work in Progress an online labor market with over 1,000 Chirvi, M. and Schneider, C., Preferences for Tax Evasion and Its Hidden Economic participants. Our findings not only Wealth Taxation – Design, Framing and the Benefits show significant positive labor supply Role of Partisanship. My second research interest centers on responses to the opportunity to evade Schneider, C. and Vogel, M., Labor Supply Im- the potentially hidden benefits of tax (increased labor supply by on average plications of a Negative Income Tax: The Role evasion. Tax evasion is a very global 37%); the expected tax revenue also of Egoistic Beliefs and Rational Preferences. and pervasive issue. Governments significantly and substantially increased Langenbach, P. and Schneider, C., Courts constantly try to reduce tax evasion and by more than 50%. Strikingly, this effect Shaping Public Opinion. An Experiment on the to raise public awareness of its negative persists when comparing effective European Court of Human Rights. consequences. Many reports and sur- tax rates: Lowering effective tax rates Mill, W. and Schneider, C., The Bright Side of veys have documented the vast expect- through the opportunity to evade is Tax Evasion. ed loss due to tax evasion. Hence, the more efficient than simply lowering question of how to tackle tax evasion is statutory tax rates. Since this revenue-in- of considerable relevance for society. In creasing effect is strongest for low Lectures and Presentations the economic literature, the issue of tax productive individuals, our work also (since 2017) evasion has already been investigated contributes to the literature on optimal very intensively. The common objec- tax administration: Given the restricted 2019 tive in this strand of literature is quite financial resources governments can straightforward: how to increase tax allocate to fighting tax evasion, the Revealed Preferences for Capital Taxation: (Periodical) Wealth Tax versus Estate Tax compliance in order to reduce undesir- question is which tax evasion should be 14th Winter School on Inequality and Social able tax evasion. However, since most targeted most, as governments can- Welfare Theory of the academic research has been not deter all tax evasion. This project Alba di Canazei, Italy focusing solely on perfect enforcement, suggests that tax enforcement should January 2020 the effects of tax evasion on labor focus on high productive individuals. The Bright Side of Tax Evasion supply and – eventually most crucial for 6th Shadow Economy Conference policy-makers – the overall tax return University of Trento, Italy July 2019 have been omitted thus far. Further Steps The Desirability of Cheating in Optimal Inspired by a theoretical work of Weiss Given the promising results of the initial Income Taxation (1976), my coauthor and I aim to explore experiment, subsequent studies are Economic Science Association (ESA) Europe- an Meeting this implication of potentially increased planned. The first experiment is delib- Burgundy School of Business Dijon, France labor supply in our project “The Bright erately kept very clean, however, at the September 2019 Side of Tax Evasion” (Mill and Schneider, cost of external validity. A follow-up work in progress). According to stan- analysis will investigate the research Desired Cheating in Income Taxation 6th Annual Mannheim Taxation (MaTax) dard economic reasoning, tax evasion question in a natural setting. Specifical- Conference reduces the effective tax rate – i.e., the ly, I plan to use regional and temporal ZEW, Mannheim, Germany rate at which the earned income is taxed variation in the number of tax auditors September 2019 – as one factually pays fewer taxes. on the German county level to study

228 2020

The Bright Side of Tax Evasion 15th Winter School on Inequality and Social Welfare Theory Alba di Canazei, Italy January 2020

The Bright Side of Tax Evasion 35th EEA Congress Erasmus University Rotterdam, Netherlands August 2020

229 D. Research Portraits

230 Sebastian O. Schneider

Overview risk preferences, including the method my co-authors and I developed. I joined Matthias Sutter’s Experimental Economics Group as a Senior Research In Schneider and Sutter (2020), we have Fellow in December 2017, after grad- applied this method to study field behav- uating in (Development) Economics ior outside the financial domain, with a from the University of Göttingen. I hold particular focus on addictive behavior. an MSc and a BSc in Mathematics in With our sample of adolescents, we find Business and Economics, from the that health-related behavior, in particular University of Mannheim. My research in abusive smartphone behavior, can be the past few years has focused on three predicted by prudence, and that failing main areas: (i) economic preferences; to account for prudence might lead to (ii) development economics; and (iii) wrong conclusions about the relation of statistical aspects of experiments. risk preferences and health behavior. Contact Economic Preferences, Their Determi- Finally, in Barron et al. (2020), we study nants, and Their Consequences the integration of Syrian refugees in [email protected] Jordanian society by means of social Most of my work has circled around preferences; and in Bašić et al. (work https://www.coll.mpg.de/ economic preferences: risk and time in progress), we study how economic sebastian-schneider preferences, as well as social preferen preferences and other personal char- ces. My focus lies on understanding acteristics determine effort provision their determinants and their role in and the effectiveness of incentives. decision-making outside controlled laboratory settings. Development Economics

For example, in Ibáñez and Schneider The results of Ibáñez and Schneider (2020), and Schneider et al. (work in (2020), and Schneider et al. (work in progress), my co-authors and I analyze progress) suggest that the poor lack the economic preferences, risk and loss alternative options to smooth con- aversion, prudence, and patience among sumption and indicate that preferences the urban poor in Bogotá, Colombia, and predict household saving. Both insights their relevance for household saving. may inform policy-making in develop- We use a lab-in-the-field approach ment contexts, as a failure in accumu- to elicit economic preferences, and lating capital can result in poverty when combine it with household data from income shocks cannot be smoothed. an extensive survey on socioeconomic characteristics. Besides theoretical In Chowdhury et al. (2020), we investi- contributions to the literature that gate whether an information campaign these papers make, we empirically (with or without additional monetary confirm the relevance of prudence and payment) via telephone can help to con- loss aversion for household saving. tain the coronavirus in remote villages in Bangladesh, and whether economic In the context of Schneider et al. preferences have an influence on the (work in progress), we develop a new, effectiveness of this measure. simple, and cost-efficient method to elicit experimentally (higher-order) Statistical Aspects of Experiments risk preferences (e.g., prudence). In Schneider and Baldini (work in prog- In Schlather and Schneider (2017), we ress), we provide ready-made apps for develop a method to assign subjects or other researchers for the experimental clusters optimally to possibly multiple framework ‘oTree’ to elicit higher-order treatment and control groups in (field)

231 D. Research Portraits

experiments, using a theoretically how individual environments, for exam- Computation Tools for Higher-Order Risk derived decision statistic. The meth- ple peers, infrastructure, and culture, Preferences. R Package. od creates comparable experimental affect economic preferences. Theoret- groups and increases the validity and ically, I am interested in combining the efficiency of estimation. Additionally, I literature on salience with the literature Work in Progress provide a software implementation as on higher-order risk preferences. Schneider S. O., Ibáñez M. and Riener G. an R and Stata ado package (Schnei- Measuring Utility – An Application to High- der and Baldini, 2019, and Schneider, Moreover, I wish to extend the work I er-Order Risk and Saving in Bogota. Draft in preparation. 2017). The method has been applied have done on the statistical aspects in various field settings, among them of experiments, and contribute to Schneider, S. O. and Baldini, G. oTree: Ready- in Bangladesh, Indonesia, and Egypt. improving the lives of the poor. made Apps for Elicitation of Higher-Order Risk Preferences due to Eeckhoudt & Schlesinger, Ebert & Wiesen, and Schneider et In Riener, Wagner, and Schneider al. Draft in preparation. (2020), my co-authors and I applied Publications (since 2017) Bašić, Z., Bortolotti, S., Cappelen, A., Gneezy, the method in a field experiment with D., Salicath, D., Schmidt, S., Schneider, S. O., more than 3,000 schools in Germany. Revise & Resubmit Sutter, M. and Tungodden, B. Heterogeneity We test the effectiveness of different in Effort Provision: Evidence from a Lab-in- Barron, K., Harmgart, H., Huck, S., Schneider, the-field Experiment. Data collection ongoing. treatment assignment mechanisms in S. O. and Sutter, M. (2020). Discrimination, establishing the conditions needed for Narratives and Family History: An Experiment valid experimental results: for exam- with Jordanian Host and Syrian Refugee Children. IZA Discussion Paper 13337 and Lectures and Presentations ple, both treatment and control groups MPI Discussion Paper 2020/13, R & R: Review containing all relevant subgroups to of Economics and Statistics. (since 2017) be studied. We thus present a way of already addressing validity conditions Working Papers 2017 at the design stage of an experiment. Chowdhury, S., Schildberg-Hörisch, H., Schnei- A New Approach to Treatment Assignment Moreover, in a typical public-policy der, S. O. and Sutter, M. (2020). Are Nudges for One and Multiple Treatment Groups setting, we document the absence of Effective to Contain Covid-19? An RCT in Verein für Socialpolitik, Annual International self-selection of partner institutions. Rural Bangladesh. MPI Working Paper. Conference of the Research Group on Devel- Ibáñez M. and Schneider S. O. (2020). Income opment Economics, Göttingen June 2017 In addition to these contributions on Risk, Precautionary Saving, and Loss Aver- sion – An Empirical Test. MPI Working Paper. the validity of experimental results, the Measuring Utility – An Application to method for elicitation of (higher-order) Riener, G., Schneider, S. O. and Wagner, V. Higher-Order Risk and Saving in Bogotá risk preferences (Schneider et al. work (2020). Addressing Validity and Generaliz- Doctoral workshop of the Development Eco- ability Concerns in Field Experiments. MPI in progress) builds on a statistical nomics Committee of the German Economic Discussion Paper 2020/16. Association, Hanover approach named P-spline regression, Schneider, S. O. and Sutter, M. (2020). Higher July 2017 which I have extended to fit the needs Order Risk Preferences: New Experimental of working with utility functions. We pro- Measures, Determinants and Field Behavior. A New Approach to Treatment Assignment vide a software implementation as an R IZA Discussion Paper 13646 and MPI Discus- for One and Multiple Treatment Groups sion Paper 2020/22. Annual Meeting of the Verein für Socialpolitik, package (Schneider and Baldini, 2020). Vienna Schneider, S. O. and Schlather, M. (2017). A September 2017 New Approach to Treatment Assignment for One and Multiple Treatment Groups, Courant A New Approach to Treatment Assignment Research Agenda 2021–2023 Research Centre Discussion Paper No. 228. for One and Multiple Treatment Groups Economic Science Association (ESA) Europe- I mainly plan to continue investigating an meeting 2017, Vienna economic preferences, in particular Software September 2017 decision-making under risk and uncer- Schneider, S. O. (2017). minMSE: Implemen- A New Approach to Treatment Assignment tation the minMSE Treatment Assignment tainty. For example, after our propos- for One and Multiple Treatment Groups & Method for One And Multiple Treatment al for elicitation of higher-order risk Measuring Utility – An Application to Groups. Stata ado-Package. preferences has been accepted by the Higher-Order Risk and Saving in Bogotá Economic Science Association (ESA) North administration of the German Socioeco- Schneider, S. O. and Baldini, G. (2019). minMSE: Implementation the minMSE American meeting 2017, Richmond (VA) nomic Panel (SOEP) for the 2020 wave, Treatment Assignment Method for One And October 2017 I plan to extend the work by Schneider Multiple Treatment Groups. R Package. and Sutter (2020) to the general German A New Approach to Treatment Assignment Schneider, S. O. and Baldini, G. (2020). utility- for One and Multiple Treatment Groups population and additional domains of FunctionTools: Implementation of Penalized Seminar Presentation, UC Berkeley behavior. Moreover, I plan to investigate Spline Regression for Utility Functions with October 2017

232 2018 Higher-Order Risk Preferences: New Experi- Higher-Order Risk Preferences: New Experi- mental Measures, Determinants, and Related mental Measures, Determinants, and Related A New Approach to Treatment Assignment Field Behavior Field Behavior for One and Multiple Treatment Groups & TIBER 2019 Symposium on Psychology and Annual Meeting of the Verein für Socialpolitik, Measuring Utility – An Application to Economics, Tilburg Cologne (virtual event) Higher-Order Risk and Saving in Bogotá August 2019 September 2020 13th German Probability and Statistics Days 2018, Freiburg im Breisgau Discrimination, Narratives and Family March 2018 History: An Experiment with Jordanian Host Professional Activities and Syrian Refugee Children Measuring Utility – An Application to Workshop on Behavioral Insights in Develop- Memberships Higher-Order Risk and Saving in Bogotá ment and Peace Building, Göttingen 2018 Symposium on Economic Experiments August 2019 European Economic Association (EEA), The in Developing Countries (SEEDEC), Wagen- Econometric Society (ES), Verein für Social- ingen Higher-Order Risk Preferences: New Experi- politik (VfS), Deutsche Mathematiker-Vereini- April 2018 mental Measures, Determinants and Related gung (DMV) Field Behavior Measuring Utility – An Application to Economic Science Association (ESA) Referee for Higher-Order Risk and Saving in Bogotá European meeting 2019, Dijon 2nd International Conference on Globaliza- September 2019 European Economic Review, Games and tion and Development, Göttingen Economic Behavior, Journal of Behavioral and May 2018 Higher-Order Risk Preferences: New Experi- Experimental Finance, Management Science mental Measures, Determinants and Related Measuring Utility – An Application to Field Behavior Higher-Order Risk and Saving in Bogotá 14th Nordic Conference on Behavioral and 11th Maastricht Behavioral and Experimen- Experimental Economics tal Economics Symposium (M-BEES 2018), September 2019 Maastricht June 2018 Higher-Order Risk Preferences: New Experi- mental Measures, Determinants and Related Measuring Utility – An Application to Field Behavior Higher-Order Risk and Saving in Bogotá Economic Science Association (ESA) North 9th annual meeting of the Society for American meeting 2019, Los Angeles Experimental Finance/EF Conference 2018, October 2019 Heidelberg June 2018 Higher-Order Risk Preferences: New Experi- mental Measures, Determinants, and Related Measuring Utility – An Application to Field Behavior Higher-Order Risk and Saving in Bogotá Experiments with Children and Non-Standard Foundations of Utility and Risk Conference, Subjects Workshop of the ESA, Los Angeles York October 2019 June 2018 Higher-Order Risk Preferences: New Experi- 2019 mental Measures, Determinants, and Related Field Behavior Higher-Order Risk Preferences: New Experi- Seminar Presentation, UC Santa Barbara mental Measures, Determinants, and Related October 2019 Field Behavior Sixth International Meeting on Experimental 2020 and Behavioral Social Sciences (IMEBESS), Utrecht Higher-Order Risk Preferences: New Experi- May 2019 mental Measures, Determinants, and Related Higher-Order Risk Preferences: New Experi- Field Behavior mental Measures, Determinants, and Related 7th Workshop in Behavioral and Experimental Field Behavior Health Economics, Innsbruck 5th Maastricht Behavioral Economic Policy February 2020 Symposium (M-BEPS 2019), Maastricht June 2019 Higher-Order Risk Preferences: New Experi- mental Measures, Determinants, and Related Higher-Order Risk Preferences: New Experi- Field Behavior mental Measures, Determinants, and Related World Congress of the Econometric Society, Field Behavior Bologna (virtual event) Seminar Presentation, Johannes Gutenberg August 2020 University, Mainz July 2019

233 D. Research Portraits

234 Marcel Schubert

Summary Report future, whereas the other covers those that do not. In his research and some My research is part of the intersection follow-up studies, Chen (2013) finds that of computer science and behavioral these differences can be mapped to a economics. The core idea is to ex- difference in savings behavior. However, ploit the advent of machine-learning all studies use either observational data technology and methods in order or test for behavioral effects between to generate new insights for the two languages. For our design, we field of behavioral economics. leverage a peculiarity of the German language, namely that one may – but does In principle, these new technologies not have to – use a future marker in a allow for two new contributions. On the future reference context. Consequently, one hand, there is the model. Here, ma- we can exclude any cultural influence chine-learning algorithms allow for the on the outcome. In our study, we find no sensible mapping of complex, non-linear stable relationship between grammati- Contact relationships between variables that cal references to the future and changes are suspected to influence an outcome. in time preferences or risk preferences. [email protected] One the other hand, it offers the chance to use and quantify information that, up The project “Text Classification of Ideo- https://www.coll.mpg.de/ until this point, was mostly disregarded. logical Direction in Judicial Opinions” marcel-schubert The most prominent example for such leverages machine-learning algorithms information is text. In the past, text was in the legal context. Here, we make use only used sparsely and required effort of the new advances in machine learn- in coding as well as subjective expert ing by training a model predicting the opinions. Here, new methods in natural ideology of the court decision. Research language processing reduce the cost so far used the Songer Project, which of using text as data by eliminating the comprises 5% of all available Appel- need for hand-coding. By using models late Court opinions. While a significant allowing for a large, multi-dimensional resource for research, a database for input, as is the case with text, we can which all opinions are labelled would operationalize such data for answering offer much richer insights. Until recently, questions in the field of behavioral eco- however, the cost of extension was pro- nomics and human behavior as a whole. hibitive. Exploiting the fact that the information encoded within text is now easily Thus, on the data side, my work as a extractable, and leveraging the fact that PhD student for the institute mostly machine learning can model complex focuses on how text and language high-dimensional relationships between influence human behavior and tries to input factors, we construct a supervised disentangle what a written text tells classifier for the prediction of political about individuals and their values. ideology. Our findings show how to construct a classifier for such a task and In “The Effect of Grammatical Variation allows researchers to expand upon the on Economic Behavior”, we investigate limited hand-coded database, making whether an effect of grammar on sav- future research more comprehensive. ings decisions, as first proposed in Chen (2013), holds true in an incentivized en- We take advantage of the fact that text vironment. When it comes to grammati- can be projected into a high-dimen- cal necessities on how to refer to future sional space and re-projected into an events within a language, languages ultra-dense subspace, thus placing may be divided into two categories. One every word of a corpus on a one-dimen- is comprised of the languages that ne- sional scale. In our work in progress, cessitate a grammatical marker for the “Vectorizing Social Cues”, Alexander

235 D. Research Portraits

Schneeberger and I employ this tech- Scholarships and Honors nique to change the framing of a topic. 2019 The idea is to show that the framing IPAK Travel Grant, DAAD University of Co- effect of words can be placed on an logne, Germany objective scale and that one can find 2019 new words for a desired framing effect Travel Grant, Empirical Legal Studies Replica- with only a small pre-labelled dictionary. tion Conference, Claremont, California

Apart from text, another type of data 2014–2017 Konrad Adenauer Scholarship that lends itself to machine learning is time series. Such data have many multi- round interdependencies within and be- Lectures and Presentations tween individuals. A prime example for (since 2017) such data is the one from public-goods games, perhaps one of the most widely 2017 studied game in behavioral economics. The Effects of Language and Grammar on However, up until now, the type space is Behavior in Terms of Risk and Time mainly explored by using simple linear 2. Konferenz für studentische Forschung models as well as expert-interpretation. Humboldt University Berlin In our work in progress, “Identifying September 2017 Theories about the Composition of the 2018 Type Space through Cluster Analysis of Linear Public Good Experiments”, How Different Parts of a Language Play Engel, Hausladen, and Schubert ex- Disparate Roles in Preferences Regarding pand upon this by systematically using Risk and Time 11th IMPRS Uncertainty Thesis Workshop, unsupervised machine learning to form Ringberg, Germany clusters of similar players. Consequent- March 2019 ly, we aim to offer a much more complete exploration of the type space and 2019 help to find and understand previously overlooked patterns in the data. Text Classification of Ideological Direction in Judicial Opinions PELS Replication Conference, Claremont McKenna College, Claremont, California Publications (since 2017) April 2019 Using Natural Language Processing to Repli- Articles in Peer-Reviewed Journals cate Hand-Coded Political Ideology Labels of Hausladen, C. I., Schubert, M. H., Ash, E. Jurisdictional Decisions (2020). Text Classification of Ideological 12th IMPRS Uncertainty Thesis Workshop, Direction in Judicial Opinions. International Wittenberg, Germany Review of Law and Economics, 62, 105903. March 2019

Work in Progress Albrecht, F., Schubert, M. H., The Effect of Grammatical Variation on Economic Behavior Engel, C., Hausladen, C. I., Schubert, M. H., Identifying Theories about the Composition of the Type Space through Cluster Analysis of Linear Public Good Experiments Schneeberger, A., Schubert, M. H., Vectorizing Social Cues

236 Armin Steinbach

Representative Research In a more public-policy-oriented publica- Since 2017 tion, I question a common view according to which economic governance in My research interest largely rests on the European Union has undergone an two pillars: legal analysis surrounding undemocratic shift as part of the crisis, EU law, international law, and consti- with accountability moving from parlia- tutional law, as well as topics lying at mentary to executive powers (Steinbach the intersection of law and econom- 2019). The paper challenges this view, ics. In the latter field, my recent work arguing that the crisis has led to a shift focused on the economic rationale of from economic to political accountabil- legal rules governing the European and ity. I define economic accountability as Monetary Union. As this subject blends the market-led accountability regime legal and economic normativity, my enshrined in EU treaties and contrast it interest is directed at whether lawyers with the current political accountability and economists coincide in the design regime, by which creditor states and Contact and interpretation of rules. Typically, my monetary institutions have supplanted research interest concerns the interac- markets as a forum for rewarding and [email protected] tion of fiscal and monetary policies. disciplining market actors. This ‘sub- stitution effect’ has been sustained by https://www.coll.mpg.de/ In one study (Janeba/Steinbach 2019), European Court of Justice (CJEU) juris- armin-steinbach we explore the economic plausibility prudence, with the CJEU positing a func- of the legal regime, with the applicable tional equivalence between market-driv- legal standard capturing the impact en pressures and political conditionality. of debt restructuring on the debtor’s expected compliance with fiscal rules. Finally, one project undertakes an empir- Our theory shows that the effect of debt ical test of conventional legal doctrine, cuts on fiscal compliance depends on according to which sovereign bond three effects, the direction of which de- spreads only depend on the country’s termines the overall effect on expected debt position, largely ignoring other fiscal compliance. We empirically review causal factors including liquidity (De the plausibility of our theoretical results Grauwe et al. 2017). We find evidence by exploiting survey data from mem- that a significant part of the surge in bers of state parliaments in Germany. the spreads of the peripheral Eurozone countries was disconnected from un- Another project deals with fiscal rules derlying fundamentals, and particularly from a different angle. We identify the from a country’s debt position, and was circumstances under which the positive associated rather strongly with market budgetary long-term effect of structural sentiments and liquidity concerns. We reforms materialize in such a way that apply our empirical findings to the legal the legal rules should be applied with a principles as interpreted by recent juris- degree of leniency, allowing for a short- prudence, arguing that application of term deterioration of the fiscal position the no-bailout principle and the ban on (Sajedi/Steinbach 2019). To that end, we monetary financing should be extended quantify the short-term fiscal costs and to capture non-debt-related factors. long-term fiscal benefits of reforms, and investigate how the design of reforms More recently, I have also extended my can affect this trade-off. The results sug- interest in law and economics to the gest that, as short-term output losses of area of international law, particularly reforms are alleviated by fiscal stimulus, to the proportionality principle, which long-term output gains from the reforms includes a necessity and a proportional- imply that fiscal viability can be reached ity test, both of which rest on empirical within a reasonable period of time. premises. The necessity test involves an

237 D. Research Portraits

assessment of whether a legal sanction In this regard, I would like to mention a Steinbach, A. and Apaza, P. (2017). Promot- is well-suited to achieve its objective. publication in which I explore the consti- ing Coherence Between PTAs and the WTO Through Systemic Integration, Journal of The proportionality test questions the tutional status of political civil servants International Economic Law, 20, 61–85. causal link between the sanction and and how this interacts with the ‘core Steinbach, A. (2017). Effect-based Analysis in principles’ notion of civil service – neu- the human rights situation in the country the Jurisprudence on the Euro Crisis. Europe- against which the sanction is aimed. trality and political bipartisanship (Stein- an Law Review, 42, 255–270. In one study, we analyze the empirical bach 2018). In another piece, I address a basis of the proportionality principle recent judgement of the European Court Journal Articles (not peer-reviewed) by examining the consequences of of Justice, in which the Court held that economic sanctions for the target companies may require their employees Steinbach, A. and Valta, M. (2019). Ein CO2- Preis für Energieträger [Pricing CO ], Juristen- country’s human-rights situation. We to wear neutral clothes, that is, to prohib- 2 Zeitung, 84, 1139–1149. use endogenous treatment-regression it religiously motivated clothing – a judg- models to test the empirical basis of the ment that I review in light of conflicting Steinbach, A. (2018). Der politische Beamte als verfassungsrechtliches Problem [The Po- proportionality principle by estimating fundamental rights (Steinbach 2017). litical Civil Servant under Constitutional Law]. the causal average treatment effect of Verwaltungsarchiv, 109, 1–32. U.S. economic sanctions on different Finally, energy law and policy remains a Steinbach, A. (2017). Religion und Neutralität types of human rights within a uniform further subject of my research interest. im privaten Arbeitsverhältnis [Religion and empirical framework. On a general note, In light of recent legislative action, I Neutrality in Private Employment]. Der Staat, our study underscores the empirical discuss legal aspects of an imminent 56, 621–651. contingencies of a core legal principle topic of economic policy – the imple- Steinbach, A. (2017). Das behördliche Unabhängigkeitsparadigma im Wirtschafts- under international and national law. mentation of CO2-pricing elements into the production and consumption of verwaltungsrecht – eine funktionell-rechtliche Betrachtung [The Independence of Gov- On the more traditional pillar of my legal energy in Germany. The article discuss- ernment Agencies]. Die Verwaltung, 50(4), work, I have lately been dealing with es the legal implications, at national 507–536. doctrinal issues under international and European level, of stronger CO 2 Steinbach, A. (2017). Die Versetzung in den trade law, as well as national constitu- orientation (Steinbach/Valta 2019). einstweiligen Ruhestand – materielle und for- tional law (Apaza/Steinbach 2018). One melle Fragen zum politischen Beamten [The project explored the role of systemic Rules Governing the Dismissal of Political Civil Servants]. 10 Zeitschrift für Beamten- integration as a method of interpretation Publications (since 2017) recht, 10, 335–340. under public international law allowing Steinbach, A. (2017). Meinungsfreiheit im adjudicating bodies to deal with possi- Articles in Peer-Reviewed Journals postfaktischen Umfeld [Freedom of Opinion ble tensions and to promote coherence Janeba, E. and Steinbach, A. (2019). Compli- in a Post-Truth World]. JuristenZeitung, 13, within international trade law. It traces ance Effects of Sovereign Debt Cuts. Interna- 653–661. tional Review of Law and Economics, 60. the various approaches to systemic inte- Steinbach, A. (2017). Social Bots im gration pertaining to international trade Steinbach, A. and Sajedi, R. (2019). Fiscal Wahlkampf [Social Bots and Election rules, as employed under both WTO and Rules and Structural Reforms, International Campaigns]. Zeitschrift für Rechtspolitik, 50, preferential trade agreements adjudica- Review of Law and Economics, 58, 34–42. 101–105. tion. While systemic integration offers a Steinbach, A. (2019). EU Economic Gov- public international law tool for reducing ernance after the Crisis: Revisiting the Books fragmentation of substantial law, there Accountability Shift in EU Economic Gover- nance, Journal of European Public Policy, 26, Steinbach, A. and van Aaken, A. (2019). is heterogeneity in adjudicative prac- 1354–1372. Ökonomische Analyse des Völker- und tice regarding the readiness to employ Europarechts [Law and Economics of Inter- Steinbach, A. (2017). Insurance-type Coordi- systemic integration for the purpose of national Law and European Law]. Tübingen: nation under EU Law. Swiss Review of Interna- Mohr Siebeck. interpretation. The article identifies pos- tional and European Law, 28, 19–40. sible avenues through which future dis- Steinbach, A. (2017). EU Liability and Interna- De Grauwe, P., Ji, Y. and Steinbach, A. (2017). tional Economic Law. Oxford: Hart Publishing. pute settlement can exploit the potential The EU Debt Crisis: Testing and Revisiting for coherence through systemic integra- Conventional Legal Doctrine. International Steinbach, A. (2017). Rationale Gesetzge- tion, as well as elements that could be Review of Law and Economics, 51, 29–37. bung [Rational Legislation]. Tübingen: Mohr Siebeck. taken into consideration when integrat- Steinbach, A. (2017). All’s Well That Ends ing multilateral and preferential rules. Well? Crisis Policy After the German Constitu- Steinbach, A. and Weise, M. (eds.) (2017). tional Court’s Ruling in Gauweiler. Maastricht Messstellenbetriebsgesetz [The Digitization Journal of European and Comparative Law, 24, of Energiewende]. Commentary. Berlin/ My research is often inspired by obser- 140–149. Boston: De Gruyter. vations that I make in my capacity as Steinbach, A. (ed.) (2017). Verwaltungsrecht- public civil servant or by topical develop- sprechung [Case Law in Administrative Law]. ments in jurisprudence or policy-making. Tübingen: Mohr Siebeck.

238 Awards / Honors 2018 Offer of chair for public law at the University of Braunschweig

2019 Science Prize of the German Society of Legislation

2020 Offer of tenured professorship at HEC Paris

Public Service Since 2017 German Federal Ministry of Economic Affairs, Berlin Head of Division “General Economic Policy”

Teaching Winter term 2017 University of Mannheim, PhD seminar, “Eco- nomic and Financial Policy”

Winter term 2018 University of Mannheim, PhD seminar, “Eco- nomic and Financial Policy” University of Bonn, seminar, “Current legal issues in European and German Politics”

Summer term 2019 University of Bonn, seminar, “Digitalization and Law”

Winter term 2019 University of Bonn, seminar, “Current Legal Issues in European and German Politics”

Professional Activities since 2017 Listed on WTO Indicative List as Panelist for WTO Dispute Settlement

2019 Sounding Board Member of “The Hague Rules on Business and Human Rights Arbitra- tion” (The Hague Rules)

239 D. Research Portraits

240 Maj-Britt Sterba

Summary Report might be relationship-specific, while others are not. Our main finding is that I am a PhD candidate in economics at having been in a cooperative relation- the Friedrich Schiller University in Jena ship significantly increases the moral and became a Research Fellow at the relevance assigned only for distribu- Max Planck Institute for Research on tions that go beyond providing for basic Collective Goods in January 2017. needs, as reflected in voting behavior, moral responsibility of the donor, and moral rights of the receiver. This effect Work in Progress is partly mediated by a lower social distance induced by the cooperation. In my PhD thesis, I investigate people’s attitudes towards inequality. My In a second project, “Fairness views on interest is twofold: One the one hand, inequality due to differential risk and my motivation is to bridge the gap and effort choices”, I add to the literature Contact inspire the debate between normative investigating the role we give to indi- theories on distributive justice and vidual achievements and choice versus [email protected] empirical findings. In two projects I luck when evaluating the fairness of test to what degree people’s individual an inequality. It has been shown that https://www.coll.mpg.de/maj-britt-sterba fairness conceptions are in line with how unjust an inequality is perceived normative philosophical theories. On depends, inter alia, on the factors that the other hand, I want to contribute generated the inequality. While most to the literature that tries to under- research until now has focused on stand what personal factors are at differentiating between factors that play when it comes to the question of are within and factors that are out of how such attitudes actually develop. the individual’s control, in this project I investigate fairness views in a new situ- In the first project, “Large-scale cooperation where both factors that determine ation and moral obligations”, together the outcome are self-chosen by the in- with Aya Adra, Oliver Kirchkamp, and dividual: in a first choice, people decide Lamé Ungwang, we investigate whether on the effort level they want to provide; large-scale economic cooperation for in a second choice, they decide on the mutual benefit triggers special moral ob- risk associated with the return to effort. ligations in the perception of laypeople. Using a third-party spectator design, I While there are a number of elaborate investigate how people’s redistribution normative theories on the role of the in- behavior is influenced by the fact that dividual with regard to global justice and people can be held accountable for responsibility, there seems to be a lack both their choices, but that the choices of research considering the individual’s are in different domains with potential- perception of the assumptions and con- ly different moral values attached to clusions postulated in these theories. As them. I find that, while a majority of the individuals are globally more and more choices is in line with the accountabil- connected, the question to which extent ity norm, around 10 % of the choices our moral intuitions have adapted to are classified as effort proportional, these facts is of prime interest. A trigger which is similar in frequency of occur- of moral obligations that has been rence to the egalitarian norm (13%). discussed prominently in political philosophy is cooperation for mutual benefit. In a third project, “Lost Control – Per- In the project, we look at differences in sonal Experiences during the COVID-19 moral obligation depending on the level Pandemic and Preferences for Redistri- of help that people are asked to provide, bution”, together with Sören Harrs from reflecting the idea that some obligations the University of Cologne, we investigate

241 D. Research Portraits

how attitudes towards redistribution are Lectures and Presentations shaped by personal (traumatic) expe- (since 2017) riences with data collected during the current COVID-19 crisis. The outbreak 2018 of the COVID-19 virus has plunged the The Scope of Justice: Attitudes on Morally world into a global health and economic Relevant Group Characteristics crisis. The long-term impact of the crisis ESA World Meeting, Berlin, Germany on society is still unclear, but heavily July 2018 discussed. A key driver in the debate on social change as well as in a person’s 2019 ideology is the question of acceptable Fairness Views on Risk-Taking Given inequality and the demand for redistribu- Different Effort Provision tion. Important factors that are receiving Sixth International Meeting on Experimental more and more interest in the economic and Behavioral Social Sciences (IMEBESS), Utrecht, Netherlands literature are normative views on just May 2019 distribution principles and – given that they are an important input factor for Divergent Choices – Fairness Views on some distribution principles – beliefs Inequality rough Endogenous Effort and Risk 14th Nordic Conference on Behavioral and on the sources of success and failure. Experimental Economics, Kiel, Germany The project aims at providing an early September 2019 assessment of the impact of COVID-19 on meritocratic beliefs and fairness views as measured in experimental Teaching games. We focus on loss of control as Winter semester 2019/2020 a behavioral channel that is activated in The Economics of Fairness times of personal and societal crisis. (together with Svenja Hippel) Bachelor seminar, University of Bayreuth

Research Agenda

In my future research, I want to investigate further what factors in a person’s personality and environment shape her attitudes towards redistribution and inequality. While the traditional perspective of economists on attitudes towards inequality has been mostly driven by the consideration of self-interest, in the recent literature fairness and other non-monetary considerations have become more and more prominent. As inequality is one of the main cleavages in the political spectrum, this question is also linked to the origin of ideology, which makes the fruitful- ness of an interdisciplinary approach to the question even more prevalent.

242 Martin Sternberg

Summary Report ics can be useful, as this discipline has produced a rich body of experimental I am a lawyer by training and became evidence on factors that facilitate collu- a Research Fellow at the Max Planck sion. Although laboratory experiments Institute for Research on Collective are not intended to map the full reality Goods in April 2018. The research by isolating the most important factors, for my PhD thesis concentrates on they are tools to identify causal effects pricing algorithms in the light of anti- and can help to understand phenomena. trust law. Therefore, I combine legal analysis with empirical research. Together with Professor Normann from the Düsseldorf Institute for Compe- tition Economics (DICE), we analyze Work in Progress laboratory markets with three or four subjects, where one of the subjects may At the moment, I am investigating or may not be equipped with a pricing Contact collusive pricing in laboratory markets algorithm. Our goal is to find out what when human players may face com- influence an algorithm can have on the [email protected] puter algorithms. Many companies in outcome of a laboratory market. In addi- digital markets use automatic software tion, we vary whether participants know https://www.coll.mpg.de/ programmes that adjust their own prices about the presence of the algorithm or martin-sternberg based on the observed prices of their not. Contributions in the literature sug- competitors. This practice can result in gest that people tend to make different prices above the competitive level, and decisions, depending on whether they thus also in welfare losses for society. face a human or a computer algorithm. However, tacit collusion is generally be- With our second manipulation, we want yond the reach of the competition laws to find out whether expectations about of most jurisdictions. For this reason, the presence of an algorithm matter. several academic conferences have been organized, dealing with algorithms With this work, I want to make a and collusion, papers have been pub- contribution to the current debate in lished, and many scholars have consid- competition law and economics. I will ered proposals for a possible regulation use the economic tools to support the in the area of antitrust law. Although the legal analysis in my doctoral thesis. harmful effects of tacit collusion are undisputed, some question the likelihood of its occurrence, both in brick-and-mor- Research Agenda tar markets and in the digital economy. Among other things, they criticize that Together with researchers on machine legal scholars in particular believe that learning, we plan to train machine-learn- algorithmic collusion is indeed very ing algorithms and compare their pricing easy to achieve, although experimental with the experimental findings on collu- economics shows the opposite, with sive algorithmic markets in the litera- collusion being unlikely to sustain in ture. In its 2009 fuel sector inquiry, the markets with three or more firms. Bundeskartellamt (Federal Cartel Office of Germany) carried out a detailed price Collusion in general is difficult to detect, analysis of fuel prices in the German and this is particularly true for tacit col- petrol-station market. It found out that lusion in the absence of an agreement. five companies form a dominant oligop- Therefore, the effect that algorithms oly in regional petrol-station markets. might have on the likelihood of collusion Because of this, the German fuel market in real markets is not easy to determine. is suitable for comparing theoretical and For this purpose, experimental econom- experimental results on self-learning

243 D. Research Portraits

pricing algorithms and collusion with the data of a real and collusive market. Because laboratory experiments have a lack of external validity, this project could extend my work by the analysis of a real market, and would be a good addition to the experimental work.

Lectures and Presentations (since 2017) Algorithms and Collusion IMPRS Uncertainty Thesis Workshop, Kreuth March 2018

Algorithmic Pricing and Collusion in Hybrid Laboratory Markets IMPRS Uncertainty Thesis Workshop, Witten- berg March 2019

Absprachen zwischen Algorithmen und das Wettbewerbsrecht 3. Offenes Doktorandenseminar, Institut für Kartellrecht, Düsseldorf September 2019

244 Matthias Sutter

In August 2017, I took over the position of Political Economy – is the first to of (co)director at the MPI in Bonn and classify whole families into two different then founded the Experimental Eco- clusters with respect to the economic nomics Group (EEG). The group’s main preferences of all family members. research areas have been described We can show that clusters are deter- in a separate section about the EEG. mined by demographic background Naturally, there is a very strong over- data. By simultaneously looking at lap of the EEG’s main research areas time, risk, and social preferences, this with my own research interests. Since is the most encompassing 360-degree founding it, I have been very pleased view of economic preferences with- with the development of the EEG. in families that is available today. Since the majority of the group is now working in the field (often in develop- The paper by Kiessling et al. (2020) is © Lisa Beller ing countries), which often requires the first to quantify the willingness of considerable time investments to get parents to pay to interfere with their Contact access to interesting subject pools, we children’s decisions in a paternalistic have only started to harvest the returns way. Moreover, it contributes a com- [email protected] from our investments in 2020. At that pletely novel aspect to the literature time, however, COVID-19 hit many of our on the intergenerational transmission https://www.coll.mpg.de/matthias-sutter projects by bringing data collection to a of preferences, namely that this trans- halt. Nevertheless, many of our projects mission is not significant in families can be brought to an end (or resumed) with paternalistic parents who are in the near future. Actually, COVID-19 willing to interfere with their children’s has not only hit us in the field, but also decisions. This means that pater- in the laboratory, which is still the main nalism breaks the intergenerational place for data collection for some EEG transmission channel, an insight so members. From mid-March 2020, our far not available in the literature. MPI laboratory was closed until the end of September, and data collection The paper by Breitkopf et al. (2020) has only slowly picked up ever since. is the first to use a very large set of siblings (over 4,000 persons, aged 6 to Needless to say, my own work has 16, from more than 2,000 pairs of sib- also been affected by COVID-19 for lings) to apply household fixed effects the reasons mentioned above. Nev- regressions to estimate how children’s ertheless, while I have perceived the preferences relate to their field behavior. years 2018 and 2019 as investment Contrary to the common wisdom in the years for building up a strong group literature, the predictive power of prefer- and setting up good data-collection ences largely vanishes when household facilities – our MPI lab became fully fixed effects are applied (which has not functional only in late 2018, and the been possible due to data limitations field sites had to be set up as well –, I in earlier work). This observation sheds have considered the year 2020 as the new light on the existing literature, but first one since my arrival at the MPI in also reveals that household characteris- which very high-potential projects have tics that are hardly measurable seem to been written down and submitted. have strong impacts on children’s economic preferences. In a sense, our paper My highest hopes revolve around the opens up many new questions for the projects from Bangladesh, where I whole literature on the intergenerational currently see three major contribu- transmission of economic preferences. tions. The paper by Chowdhury et al. (2020) – which currently has the status In addition to these projects from Ban- “revise and resubmit” with the Journal gladesh, I would like to highlight a few

245 D. Research Portraits

other projects that I consider as most multiple barriers to behavioral change. Romano, A., Sutter, M., Liu, J., Yamagishi, T. promising. When behavioral change is avoided due and Balliet, D. (2020b). National parochialism is ubiquitous around the globe. Nature Com- to a combination of lack of attention munications. (conditionally accepted). Schneider and Sutter (2020) is the first and lack of information, such multiple Sutter, M., Huber, J., Kirchler, M., Stefan, M. barriers make it difficult to unfold the paper to elicit higher-order risk prefer- and Walzl, M. (2020). Where to look for the ences in a very simple way with children full potential of single interventions, like morals in markets. Experimental Economics, and teenagers, while at the same time giving information or real-time feedback. 23, 30–52. allowing, by means of our method, for Using data from German student-dorm Sutter, M. and Untertrifaller, A. (2020). estimations of utility functions that per- occupants, we can show that barrier Children’s heterogeneity in cooperation and mit taking derivatives and thus measure multiplicity is a real problem for single parental background. An experimental study. the strengths of higher-order risk prefer- interventions, but that applying multiple Journal of Economic Behavior and Organiza- tion, 171, 286–296. ences. While the method development interventions at the same time can help is impressive in itself, the relation of the unfold the full savings potentials of such Sutter, C., Rosenberger, W. and Sutter, M. (2020). Nudging with your child’s education. experimentally elicited higher-order risk interventions (by finally reducing energy A field experiment on collecting municipal preferences to students’ field behavior consumption by about 30% on average). dues when enforcement is scant. Economics reveals new and important insights. Letters, 119, 109116, 1–3. In particular, prudence (the third-order In conclusion, let me briefly reflect on Balafoutas, L. and Sutter, M. (2019). How un- derivative) is a key determinant of finan- the publications since 2018. Two papers certainty and ambiguity in tournaments affect cial decision-making and health-related – Balafoutas et al. (2018) and Romano gender differences in competitive behavior. European Economic Review, 118, 1–13. behavior. Most importantly, however, et al. (2020) – failed only marginally at by adding prudence and temperance even higher-ranked general-science jour- Fehr, D. and Sutter, M. (2019). Gossip and in the risk elicitation, it becomes clear nals, but made it smoothly into Nature the efficiency of interactions.Games and Economic Behavior, 113, 448–460. that risk aversion, if measured by itself Communications, which we consider a without higher-order risk preferences, prestigious outlet. Similarly, Karlsson Karlsson Linner, R. K., Biroli, P., …, Sutter, M., …, Beauchamp, J. (2019). Genome-wide as- yields terribly misleading results. Thus, Linnér et al. (2019) in Nature Genetics is sociation analyses of risk tolerance and risky this paper is able to put previous results one of my favourite publications recent- behaviors in over 1 million individuals identify into a completely new perspective. ly, and it is very well cited. Heinz et al. hundreds of loci and shared genetic influenc- (2020) in the Economic Journal would es. Nature Genetics, 51(2). 245–257. Gill et al. (2020) is a paper that stud- have deserved an even better outlet, Sutter, M., Zoller, C. and Glätzle-Rützler, D. ies self-selection of business and in my opinion, but it got wide media (2019). Economic behavior of children and adolescents – A first survey of experimen- economics students (from the Uni- attention on TV and radio and in print, tal economics results. European Economic versity of Frankfurt) into the financial which suggests it had public impact. Review, 111, 98–121. industry. For this project, we followed Ahn, T.K., Balafoutas, L., Batsaikhan, M., students from the time of participating Publications (since 2017) Campos-Ortiz, F., Putterman, L. and Sutter, as university students in an experi- M. (2018). Trust and communication in a mental trust game over many years Articles in Peer-Reviewed Journals property rights dilemma. Journal of Economic Behavior and Organization, 149, 413–433. (up to seven) into their first placement Dertwinkel-Kalt, M., Köster, M. and Sutter, M. in a permanent job. We find that the (2020). To buy or not to buy? Price salience in Balafoutas, L., Fornwagner, H. and Sutter, M. least trustworthy students select into an online shopping field experiment.Euro ‑ (2018). Closing the gender gap in competi- pean Economic Review, 103, no. 103593. tiveness through priming. Nature Communica- the financial industry (controlling for tions, 9, 4359. gender and cognitive abilities). Our data Heinz, M., Jeworrek, S., Mertins, V., Schu set is the first to allow linking trust- macher, H. and Sutter, M. (2020). Measuring Cooper, D. J. and Sutter, M. (2018). Endo‑ indirect effects of unfair employer behavior genous role assignment and team perfor- worthiness and self-selection into the on worker productivity – A field experiment. mance. International Economic Review, 59(3). financial industry, and our results shed Economic Journal, 23, 2546-2568. 1547–1569. light on one potentially crucial factor Romano, A., Bortolotti, S., Hofmann, W., Sutter, M., Angerer, S., Glätzle-Rützler, D. and for continued mistrust in the financial Praxmarer, M. and Sutter, M. (2020). Gener- Lergetporer, P. (2018). Language group dif- industry, namely negative self-selection osity and cooperation across the life span: A ferences in time preferences: Evidence from with respect to social preferences. lab-in-the-field study. Psychology and Aging. primary school children in a bilingual city. (forthcoming). European Economic Review, 106, 21–34. Fang et al. (2020) studies ways to Romano, A., Sutter, M., Liu, J. and Balliet, D. Sutter, M., Feri, F., Glätzle-Rützler, D., Kocher, M., Martinsson, P. and Nordblom, K. (2018). reduce energy consumption in an ener- (2020c). Political ideology, cooperation, and national parochialism across 42 nations. Phi- Social preferences in childhood and adoles- gy-intensive daily activity, i.e., showering. losophical Transactions of the Royal Society B cence. A large-scale experiment to estimate The main contribution of this paper to (forthcoming). primary and secondary motivations. Journal the literature on environmentally friendly of Economic Behavior and Organization, 146, 16–30. behavior is the modelling and testing of

246 Balafoutas, L. and Sutter, M. (2017). On the Book Kiessling, L., Chowdhury, S., Schild- nature of guilt aversion: Insights from a new berg-Hörisch, H. and Sutter, M. (2020c). methodology in the dictator game. Journal Sutter, M. (2017). Die Entdeckung der Geduld. Parental paternalism. MPI Working Paper. of Behavioral and Experimental Finance, 13, Ausdauer schlägt Talent. (in Turkish: Sabrın 9–15. Keşfi – Yetenek Karşısında Sebatın Zaferi). Schildberg-Hörisch, H., Breitkopf, L., Kaknus. Chowdhury, S., Kamhöfer, D. and Sutter, M. Balafoutas, L., Kerschbamer, R. and Sutter, (2020). Sensitive periods in the formation M. (2017). Second-degree moral hazard in a of socio-emotional skills: Evidence from a real-world credence goods market. Economic Working Papers randomized controlled trial. Working Paper, Journal, 127 (599). 1–18. University of Duesseldorf. Angerer, S., Dutcher, G., Glätzle-Rützler, D., Huber, J., Kirchler, M., Kleinlercher, D. & Sutter, Lergetporer, P., Sutter, M. (2020). Outcomes Schneider, S. O. and Sutter, M. (2020). Higher M. (2017). Market versus residence principle: versus memories and the formation of risk order risk preferences: New experimental Experimental evidence on the effects of a preferences. MPI Working Paper. measures, determinants and field behavior. financial transaction Tax.Economic Journal, IZA Discussion Paper 13646 and MPI Discus- 127(605). F610–F631. Balafoutas, L., Fornwagner, H., Kerschbamer, sion Paper 2020/22. R., Sutter, M., Tverdostup, M. (2020). Diag- Kerschbamer, R. and Sutter, M. (2017). The nostic uncertainty and insurance in credence Sutter, M., Weyland, M., Untertrifaller, A. and economics of credence goods – A survey goods markets. Working Papers in Economics Froitzheim, M. (2020). Financial literacy, of recent lab and field experiments.CESifo and Statistics 2020-21, University of Inns- risk and time preferences – Results from a Economic Studies, 63(1). 1–23. bruck and MPI Discussion Paper 2020/26. randomized educational intervention. IZA Discussion Paper 13566 and MPI Discussion Kerschbamer, R., Sutter, M. and Dulleck, Bašić, Z., Bindra, C., Glätzle-Rützler, D., Ro- Paper 2020/17. U. (2017). How social preferences shape mano, A., Sutter, M. and Zoller, C. (2020). The incentives in (experimental) markets for roots of human cooperation. MPI Working Charness, G., Feri, F., Melendez-Jimenez, M. credence goods. Economic Journal, 127(600). Paper. and Sutter, M. (2019). An experimental study 393–416. on the effects of communication, credibility, Bindra. C., Kerschbamer, R., Neururer, D. and and clustering in network games. IZA Discus- Sutter, M. (2020). Reveal it or conceal it: On sion Paper 12347 and MPI Discussion Paper the value of second opinions in low-entry- Revise & Resubmit 2019/8. barrier credence goods market. IZA Discus- Barron, K., Harmgart, H., Huck, S., Schneider, sion Paper 13344 and MPI Discussion Paper Czermak, S., Feri, F. and Sutter, M. (2019). S. O. and Sutter, M. (2020). Discrimination, 2020/11. Strategic sophistication under external time narratives and family history: An experiment constraints. Breitkopf, L., Chowdhury, S., Priyam, S., Schild- with Jordanian host and Syrian refugee chil- berg-Hörisch, H. and Sutter, M. (2020a). Do Kerschbamer, R., Neururer, D. and Sutter, M. dren. IZA Discussion Paper 13337 and MPI economic preferences of children predict (2019). Credence goods markets and the Discussion Paper 2020/13, R & R: Review of behavior? Evidence from siblings compari- informational value of new media: A natural Economics and Statistics. sons. DICE Discussion Paper 342, University field experiment.IZA Discussion Paper 12184 Chowdhury, S., Sutter M. and Zimmermann, of Duesseldorf. and MPI Discussion Paper 2019/3. K. (2020b). Economic preferences across Breitkopf, L., Chowdhury, S., Priyam, S., Schild- Chowdhury, S., Sutter, M. and Zimmermann, generations and family clusters: A large-scale berg-Hörisch, H. and Sutter, M. (2020b). Par- K. (2018). Evaluating intergenerational experiment. IZA Discussion Paper 13451. enting styles and life outcomes of children. persistence of economic preferences: A R & R: Journal of Political Economy. MPI Working Paper. large scale experiment with mothers, fathers, Kassis, M., Schmidt, S., Schreyer, D. and families and children in Bangladesh. MPI Buffat, J., Praxmarer, M. and Sutter, M. Sutter, M. (2020). Measuring the value of Discussion Paper 2018/4. (2019). The intrinsic value of decision rights: managerial decisions in dynamic team A note on team versus individual decision- Detlefsen, L., Friedl, A., Lima de Miranda, K., tournaments – Evidence from a natural field making. MPI Working Paper. Schmidt, U. and Sutter, M. (2018). Are eco- experiment. IZA Discussion Paper 13628, nomic preferences shaped by the family con- R & R: Games and Economic Behavior. Charness, G., Cobo-Reyes, R., Eyster, E., Katz, text? The impact of birth order and siblings’ G., Sanchez, A. and Sutter, M. (2020). Improv- Glätzle-Rützler, D., Lergetporer, P. and Sutter, sex composition on economic preferences. ing healthy eating in children: Experimental M. (2019). Collective intertemporal decisions MPI Discussion Paper 2018/12. evidence. Working Paper University of Califor- and heterogeneity in groups. CESifo Working nia, Santa Barbara. Bortolotti, S., Soraperra, I., Sutter, M. and Paper Series 7716. R & R: Games and Eco- Zoller, C., (2017). Too lucky to be true: Fair- nomic Behavior. Chowdhury, S., Schildberg-Hörisch, H., Schnei- ness views under the shadow of cheating. der, S. O. and Sutter, M. (2020a). Are nudges IZA Discussion Paper 10877. effective to contain Covid-19? An RCT in rural Book Chapter Bangladesh. MPI Working Paper. Kocher, M., Praxmarer, M. and Sutter, M. Fang, X., Goette, L., Rockenbach, B., Sutter, Work in Progress (2020). Team decision-making. In: Zimmer- M., Tiefenbeck, V., Schoeb, S. and Staake, T. mann, K. F. (Ed.): Handbook of Labor, Human (2020). Complementarities in behavioral in- Bortolotti, S., Kölle, F., Soraperra, I. and Sutter, Resources and Population Economics. Spring- terventions: Evidence from a field experiment M. (in preparation). Betrayal, risk taking, and er: Heidelberg. on energy conservations. Discussion Paper redistribution. Series CRC TR 224, University of Bonn. Bašić, Z., Bortolotti, S., Cappelen, A., Gneezy, Gill, A., Heinz, M., Schumacher, H. and Sutter, U., Salicath, D., Schneider, S. O., Sutter, M. and M. (2020). Trustworthiness in the financial Tungodden, B. (ongoing). Heterogeneity in

industry. IZA Discussion Paper 13583, MPI effort provision: evidence from a lab-in-the- Discussion Paper 2020/19. field experiment.

247 D. Research Portraits

Grants What determines children’s economic Costly customers’ mistakes in credence preferences? Evidence from a large-scale goods markets 2019 – 2025 experiment ZEW Mannheim, Research seminar, Mann- German Science Foundation (DFG): Excel- Cambridge IBSEN workshop on large-scale heim lence Cluster “ECONtribute: Markets & Public experiments, University of Cambridge 22 June 2017 Policy” (Co-PI) 21 March 2017 You are fired! Productivity shocks from 2019 – 2020 What determines children’s economic work-norm violations in a field experiment Diligentia-Foundation Cologne: Project on preferences? Evidence from a large-scale 68° conference, Svolvaer, Lofoten Arsenic water poisoning in India (PI) experiment 5 August 2017 University of Essex, Research seminar, Essex 23 March 2017 The economics of credence goods: Evidence Lectures and Presentations from the field The economics of credence goods: Evidence IMPRS Summerschool, Jena (since 2017) from the field 9 August 2017 University of Tübingen, Forschungsseminar 2017 26 April 2017 Hat der homo oeconomicus ausgedi- ent? Erkenntnisse der experimentellen Einführung in Behavioral Economics Deception in strategic interaction Wirtschaftsforschung und Verhaltens‑ Gottlieb Duttweiler Institut, Behavioral Eco- Compliance training, International Anti-Cor- ökonomie nomics Academy, Rüschlikon ruption Academy, Laxenburg Roman Herzog Institut, Munich 26 January 2017 28 April 2017 17 October 2017

Where to look for the morals in markets? The economics of credence goods: Evidence Too lucky to be true. Fairness views under University of Amsterdam, Research seminar from the field the shadow of cheating 10 February 2017 Workshop x-hub (GESIS), Cologne CESifo Conference on Behavioural Econom- 11 May 2017 ics, Munich Entscheiden 28 October 2017 Montforter Zwischentöne, Konzert mit Inter- Costly customers’ mistakes in credence view, Feldkirch goods markets Die Entdeckung der Geduld (Keynote speak- 24 February 2017 Experimental Advances in Organizational er) Behavior, Burgundy School of Business, Dijon Bundesfinanzakademie Österreich, Bunde- Costly customers’ mistakes in credence 24 May 2017 sministerium für Finanzen, Trainertag, Vienna goods markets 15 November 2017 University of California Riverside, Economics Too lucky to be true. Fairness views under research seminar, Riverside the shadow of cheating Einkommensverteilung, Betrug und Ge- 7 March 2017 EWEBE-Meeting, University of Bologna, rechtigkeit: Wohin driftet der gesellschaftli- Bertinoro che Grundkonsens? (Keynote speaker) The economics of credence goods: Evidence 26 May 2017 11. Mediengipfel in Lech am Arlberg, Lech am from the field (Keynote speaker) Arlberg Spring School at University of California at Too lucky to be true. Fairness views under 1 December 2017 San Diego, La Jolla the shadow of cheating (Keynote speaker) 9 March 2017 Society for Experimental Finance, Annual Gerechtes Wirtschaften und Vertrauen. Vom Meeting, Nice Sinn ökonomischer Beziehungen (Keynote Too lucky to be true. Fairness views under 14–15 June 2017 speaker) the shadow of cheating Caritasgespräche Vorarlberg, Feldkirch Loyola Marymount University, Research semi- Self-selection into the finance industry (Key- 11 December 2017 nar, Los Angeles note speaker) 13 March 2017 Society for Experimental Finance, Annual 2018 Meeting, Nice What determines children’s economic 14–15 June 2017 Die Entdeckung der Geduld preferences? Evidence from a large-scale University of Bonn experiment Ehrlich währt am längsten. Ein verh- 16 January 2018 University of California at Berkeley, Applied altensökonomischer Blick auf Delinquenz Microeconomics Seminar, Berkeley und unmoralisches Verhalten (Keynote Kooperation versus Egoismus? Wirtschaft- 14 March 2017 speaker) liche Grundlagen unseres Wohlstandes. 26. Forum der österreichischen Staatsanwält- (Keynote Speaker) Self-selection into the finance industry (Key- innen und Staatsanwälte, Walchsee Rheintaler Wirtschaftsforum, Widnau note speaker) 19 June 2017 19 January 2018 G20-summit in Baden-Baden, Presentation in front of deputies of G20-central bank gover- What determines children’s economic What determines children’s economic nors, Baden Baden preferences? Evidence from a large-scale preferences? Evidence from a large-scale 16 March 2017 experiment experiment. University of Düsseldorf, Research seminar, University of Southern California, Research Düsseldorf Seminar 20 June 2017 05 March 2018

248 You are fired! Productivity shocks from Die Entdeckung der Geduld Are economic preferences shaped by the work-norm violations in a field experiment IKAS Schulleitertreffen, Lenk family context? Chapman University, Orange, CA. Research 08 September 2018 Briq, Workshop on Skills, Preferences and Seminar Educational Inequality, Bonn 06 March 2018 Mit Geduld zum Erfolg 23 November 2018 11. Interkantonale Schulleitertagung IKAS, Driving to the beat – Reputation vs. selection Lenk Die ökonomische Vermessung der Welt in credence goods markets. 08 September 2018 Europäischer Mediengipfel, Lech am Arlberg Universtiy of California at San Diego, Spring 30 November 2018 School Financial literacy and economic preferences 08 March 2018 – An intervention study in schools 2019 Schulleitertreffen, Bestwig Die Entdeckung der Geduld 25 September 2018 Alles sharing oder was? Fundamentales zur PK-Rück Versicherung, Zürich neuen Gesellschaft 23 March 2018 Verhaltensökonomie und wie man Verhalten Group of Fifteen, Zürich beeinflussen kann 30 January 2019 Driving to the beat – Reputation vs. selection Rotary Club, Köln in credence goods markets. 01 October 2018 Credence goods markets and the informa- GATE Lyon, Research Seminar tional value of new media: A natural field 11 April 2018 Field experimental evidence how (not) to experiment tackle asymmetric information on credence Workshop in honor of Werner Güth’s 75th Financial literacy and economic preferences goods markets birthday, Wissenschaftszentrum Berlin, Berlin – An intervention study in schools. University of Gothenburg, Research Seminar, 2 February 2019 Deutsche Bundesbank, Research seminar, Göteborg Frankfurt 23 October 2018 Credence goods markets and the informa- 13 April 2018 tional value of new media: A natural field Field experimental evidence how (not) to experiment Financial literacy and economic preferences tackle asymmetric information on credence Innsbruck Winter School, Innsbruck – An intervention study in schools. goods markets 21 March 2019 Ifo-Institut, München Universität Göttingen, Forschungsseminar, 17 April 2018 Göttingen Wie und warum Kooperation gelingen kann – 24 October 2018 Einsichten aus der Verhaltensökonomie Die Entdeckung der Geduld Schau! Dornbirner Frühjahrsmesse, Dornbirn Raiffeisenbank Schwaz, Kundenmeeting, Economic preferences within families: 4 April 2019 Fügen im Zillertal Large-scale experimental evidence from 26 April 2018 Bangladesh Einkommensverteilung, Betrug und Ge- CESifo Area Conference Behavioural Econom- rechtigkeit Nudging – How to affect human behavior ics, Munich 4. Kongress christlicher Frührungskräfte, Stift with simple interventions 26 October 2018 Göttweig Deutsches Diabetes-Zentrum Düsseldorf, 3 May 2019 Research Seminar Die Entdeckung der Geduld 08 May 2018 VBEN – Vienna Behavioral Economics Net- Die Entdeckung der Geduld work, Wien Max Planck Stiftung, München Financial literacy and economic preferences 07 November 2018 9 May 2019 – An intervention study in schools. University of Tilburg, EWEBE-Meeting, Tilburg Field experimental evidence how (not) to Wie und warum Kooperation gelingen kann – 17 May 2018 tackle asymmetric information on credence Einsichten aus der Verhaltensökonomie goods markets Dies Academicus, Freie Universität Bozen, Nudging – How to affect human behavior Burgundy School of Business, Workshop, Bozen with simple interventions. Dijon 29 May 2019 Rotary Club, Innsbruck 09 November 2018 22 May 2018 Deception in strategic interaction Mit Ausdauer zum (Unternehmens)Erfolg Compliance seminar IACA, Laxenburg Driving to the beat – Reputation vs. selection – Was uns die Verhaltensökonomie dazu 6 June 2019 in credence goods markets sagen kann Inaugural conference of EEG at Max Planck PRO Fachkräfte Kongress, Nürnberg Die Entdeckung der Geduld Institute Bonn, Bonn 15 November 2018 Rechtsanwälte Greiter, Pegger, Kofler & Part- 28 May 2018 ner, Innsbruck To buy or not to buy? Shrouding and parti- 13 June 2019 Führung und Geduld tioning of prices in an online shopping field Rheinische Fachhochschule Köln, Köln experiment What shapes children’s decisions? Experi- 20 June 2018 University of Cologne, C-SEB Workshop, ence or (selective) memory Cologne EWEBE-Meeting, GATE Lyon, Lyon Bedeutung der Erkenntnisse der Verh- 22 November 2018 18 June 2019 altensökonomie für die Mobilitätsthematik Verhaltensökonomie und Mobilität, Avenir Roots of human cooperation Suisse, Bern Research Seminar, NHH Bergen, Bergen 27 June 2018 23 September 2019

249 D. Research Portraits

Credence goods markets and the informa- (Higher order) risk preferences and patience Summer term 2019 tional value of new media: A natural field predict addictive behavior among adoles- University of Cologne experiment cents Bachelor Course “Microeconomics – Industri- CESifo Area Conference Behavioural Econom- Research Seminar George Mason University, al Organization” (2 SWS) ics, München Washington 25 October 2019 14 February 2020 Winter term 2019/2020 University of Cologne Roots of human cooperation What shapes children’s decisions? Experi- Executive MBA-Course “Social and Economic Institute for the World Economy, Kiel ence or (selective) memory? Behavior” (2 SWS) 5 November 2019 Research Seminar Princeton University, Princeton Summer term 2020 Verhalten, Ökonomik und Recht. Einsichten 18 February 2020 University of Cologne aus der Verhaltensökonomik Bachelor Course “Microeconomics – Industri- Wirtschaft und Recht-Symposium, Salzburg Social preferences and selection into the al Organization” (2 SWS) 14 November 2019 financial industry Research Seminar, University of Chicago, Die Wurzeln menschlicher Kooperation – Ein Chicago Public service Projekt in Tiroler Kindergärten 20 February 2020 Research Seminar Centrum für Chemie und Since 2020 Biomedizin, Medizinische Universität Inns- Member of the Vorarlberg government’s bruck, Innsbruck Diploma Theses, Disserta group of experts on COVID-19 22 November 2019 tions, and Habilitations Since 2018 Erfolgreich in der Businessclass Board member of the foundation “Diligen- Europäischer Mediengipfel, Lech am Arlberg Dissertations tia – Stiftung für empirische Forschung” in 29 November 2019 Cologne. September 2018 Heute? Morgen? Vielleicht? Verhaltensökon- Claudia Zoller, University of Cologne: Essays 2015-2018 omische Einsichten in menschliches on Fairness, Coordination, and Diligence: Member of the scientific advisory group for Entscheidungsverhalten Experimental Evidence from Children and the Austrian government’s project “Motivier- Universitätsklinikum Bonn, Bonn Young Adults ender Staat” (hosted by the Austrian Federal 20 December 2019 Ministry for Family and Youth and by the Aus- September 2018 trian Federal Ministry for Economics, Science 2020 Matthias Praxmarer, University of Cologne: and Technology). The Role of Social Cues and Social Reference Wie und warum Kooperation gelingen kann – Points in Economic Decision-Making Einsichten aus der Verhaltensökonomie Professional Activities Musik und Wissenschaft – Themenkonzerte, September 2018 Hamburg Anna Untertrifaller, University of Cologne: Referee for (only journals for which I have 14 January 2020 Essays on Fairness, Coordination, and Dili- refereed at least once from 2018 to 2020) gence-Experimental Evidence from Children Die Entdeckung der Geduld and Young Adults American Economic Journal: Economic Policy Caesarium, Bonn American Economic Review 16 January 2020 March 2019 Bulletin of Economic Research Sebastian Soung-Un Tonke, University of Economic Journal Die Kraft der Kooperation Cologne: Using Behavioral Interventions to Economics Letters 56. Informationstagung des ÖRV, Bregenz Foster Resource Sustainability Experimental Economics 24 January 2020 Games and Economic Behavior September 2020 German Science Foundation Verhaltensökonomik – und wie man Ver Parampreet Christopher Bindra, University of Journal of Economic Behavior and Organiza- halten beeinflussen kann Innsbruck: Essays in Experimental Econom- tion Bezauer Kreis, Bludenz ics: Credence Goods & Other (field) Experi- Journal of Economic Psychology 27 January 2020 ments Journal of Finance Journal of Political Economy Geduld und Unsicherheit October 2020 Journal of Population Economics Behavioral Economics Academy, Gottlieg Patrick Bernau, University of Cologne: Journal of Public Economics Duttweiler Institut, Rüschlikon Learning. Giving. Teaming Up. – Essays in Journal of the Economic Science Association 29 January 2020 Economic Decision Experiments Journal of the European Economic Associa- tion Credence goods markets and the informa- Nature Human Behavior tional value of new media: A natural field Teaching PNAS – Proceedings of the National Academy experiment of Sciences Research Seminar Carnegie Mellon University, Winter term 2018/2019 Psychology and Aging Pittsburgh University of Cologne Quarterly Journal of Economics 13 February 2020 PhD-Course “Advanced Experimental Eco- Review of Economic Studies nomics” (2 SWS) Review of Economics and Statistics Executive MBA-Course “Social and Economic Scandinavian Journal of Economics Behavior” (2 SWS) Science Advances

250 Editorial boards Journal of the European Economic Associa- tion – Associate Editor (since 10/2016) Economics Letters – Associate Editor (since 09/2014) European Economic Review – Associate Editor (since 10/2012) Management Science – Associate Editor (since 07/2011) Journal of the Economic Science Association – Member of editorial board (since 07/2014) Experimental Economics – Member of editorial board (07/2009-10/2018)

Memberships Since 2019 Member of the Academia Europaea

Since 2018 Member of the scientific advisory board of the Kiel Institute for the World Economy

Since 2017 Member of the scientific advisory board of the Institute for Advanced Studies (IHS) Vienna

251 D. Research Portraits

252 Fiona tho Pesch

Summary Report Meta-Analysis of Moral Wiggle Room

I joined the institute in October 2018 The concept of moral wiggle room has as a PhD student in Anna Baumert’s attracted a lot of attention both in eco- research group on moral courage. I held nomics and psychology; since its intro- a teaching position for the academic duction in 2007 by Dana and colleagues, year of 2018/2019 at the FernUniversität there have been over 1,000 papers on in Hagen. I also received a scholarship Google Scholar that mention the term. from the Studienstiftung des deutschen To our knowledge, the concept has not Volkes in 2019. I spent one semester at been thoroughly defined in any of these Yale University in New Haven, working papers. The first step of our meta-anal- together with Jason Dana. In my PhD, I ysis on moral wiggle room is to define am mainly concentrating on situational the concept. Subsequently, we will factors influencing prosocial behavior. investigate whether introducing moral With several experiments, I am looking wiggle room to a situation consistently Contact at the role of ignorance in prosocial decreases prosocial behavior, or wheth- decision-making. I am also working on er it depends on the type of moral wiggle [email protected] a meta-analysis on the topic of moral room. We will also test whether there is wiggle room. Together with a colleague a stable proportion of people exploiting https://www.coll.mpg.de/fiona-tho-pesch at UC Berkeley, I received a research moral wiggle room, and whether people grant to investigate the tunneling effect are more or less likely to exploit moral in decision-making under scarcity. wiggle room depending on the stakes.

Ignorance in Prosocial Decision-Making The Tunneling Effect in Decision- Making under Scarcity As the centerpiece of my PhD, I am investigating ignorance as a form of In a side project on decision-making moral wiggle room. Prior research has under scarcity, we will use eye-tracking shown that people choose not to reveal technology to investigate tunneling as certain pieces of information in order to an effect of scarcity on information behave selfishly (e.g., Dana et al., 2007). processing. In the literature on scarcity, In a line of studies, we show that people and more precisely on poverty, it has do not act either on a norm violation been argued that people experiencing in their environment when they have a acute scarcity also experience a nar- secondary task they can engage in. This rowing of their cognitive space, whereby tendency to exploit moral wiggle room they excel at tasks that fall within the is connected to people’s social prefer- narrow tunnel defined by their scarcity, ences: it is mainly prosocial people, as but neglect tasks and information that measured by SVO, who are supposedly fall outside of that tunnel (Mullainathan ignoring the norm violation when a & Shafir, 2013). We will investigate this secondary task is introduced to the effect by tracking people’s information design. In a follow-up online study, we search patterns while manipulating their are planning to investigate whether this experience of scarcity, to see whether ignorance is strategic such that people the behavioral effects observed in the want to avoid the costs associated with literature can be traced back to dif- intervening against a norm violation. In ferences in information processing. an eye-tracking study, furthermore, we will investigate whether people actually References engage in information avoidance, or Dana, J., Weber, R. A. and Kuang, J. X. (2007). whether they merely use the plausible Exploiting moral wiggle room: Experiments deniability that the situation offers to demonstrating an illusory preference for fair- defend non-intervention behavior. ness. Economic Theory, 33(1), 67–80.

253 D. Research Portraits

Mullainathan, S. and Shafir, E. (2013). Seeing Moral Transgressions – Information Scarcity: The true cost of not having enough. Avoidance in Costly Punishment. Penguin Books. The Society for Personality and Social Psychology’s Annual Convention (SPSP) Portland, OR Publications (since 2017) February 2019 Seeing Moral Transgressions – Information Revise & Resubmit Avoidance in Costly Punishment Tho Pesch, F., Fiedler, S. and Baumert, A. Subjective Probability, Utility, and Decision (R & R). Seeing moral transgressions: Moral Making (SPUDM) wiggle room in costly punishment. Economic Amsterdam, The Netherlands Psychology. August 2019

Ignorance as Moral Wiggle Room – Some Online Studies (invited) Scholarships and Grants Yale University (Department of Philosophy): Knobe Lab December 2019 2019 PhD scholarship, including financial and conceptual support, Studienstiftung des deutschen Volkes Professional Activities

Memberships 2020 Research Grant, Psychology and Economics Member of the Society for Judgement and of Poverty Initiative & Center for Effective Decision Making Global Action, UC Berkeley Member of the European Association of Social Psychology Teaching Winter term 2018/2019 Department of Psychology, Chair for General Psychology: Judgement and Decision-Making [Bachelor thesis supervision] FernUniversität in Hagen

Summer term 2019 Department of Psychology, Chair for General Psychology: Judgement and Decision-Making [Bachelor thesis supervision] FernUniversität in Hagen

Lectures and Presentations (since 2017)

2019

Seeing Moral Transgressions – Information Avoidance in Costly Punishment (invited) Yale University (School of Management): Dana Lab February 2019

Seeing Moral Transgressions – Information Avoidance in Costly Punishment (invited) Yale University (Department of Psychology): Crockett Lab February 2019

254 Sebastian Tonke

I joined the Max Planck institute in May willing to pay, but neither receives their 2019. Prior to joining the EEG group, I invoice properly nor understands its completed my PhD at the University of content. We address these informational Cologne. My research focuses on be- frictions using simplified text messages havioral public policy, development, and and apply psychological commitment environmental economics. I conduct techniques to narrow the gap between field experiments to study how social customers’ willingness to pay and actual norms, information provision, identity payments. Payments increase by 30% concerns, and self-control shape human to 61%, making the interventions highly behavior. A focus of my work has been cost-effective. While removing informa- the water sector in Namibia and Koso- tional frictions has a lasting impact, the vo, where I use large-scale, low-cost commitment techniques produce only interventions to address the non-pay- short-term effects. ment of utility bills and to curb water consumption during a drought (projects Imperfect Procedural Knowledge: Contact 1-3). I have also conducted a lab-in-the- Evidence from a Field Experiment to field experiment in Namibia to study Encourage Water Conservation (Tonke, [email protected] the role of social norm violations on the 2020) sharing behavior of others (project 4). In this study, I provide causal evidence https://www.coll.mpg.de/sebastian-tonke that imperfect procedural knowledge Growing Water Scarcity Affects the is a severe obstacle to efficient behav- Health and Wealth of Individuals Across ior, but can be overcome by providing the Globe low-cost information. I conduct a large- The lack of access to purified water scale field experiment with the public sources leads to waterborne diseases water utility in Namibia to encourage like diarrhea and typhoid fever, infant water conservation during a drought. mortality, and inferior educational attain- Providing mass-targeted conservation ment. Affordable and dependable ac- strategies via text message decreases cess to water is also crucial input factor consumption by 5.3 percent. Additional for industrial and agricultural productiv- treatments encouraging individuals to ity. Two thirds of the world’s population develop their own strategies are inef- already experience severe water scarcity fective and rule out alternative explana- for at least one month a year, and water tions, such as reminders, awareness of demand has been increasing by 1% per water scarcity, or being asked to reduce year over the past decades. Threats to consumption. sustainable water management from the consumer side are the non-payment Using Identity Appeals to Decrease of water utility bills, which complicates Non-Payment for Water in Kosovo (Ton- cost recovery, and overconsumption. ke, work in progress) Finding effective interventions to ad- In cooperation with the public water pro- dress non-payment and overconsump- vider in Kosovo, I conduct a large-scale tion is a global challenge. field experiment to decrease non-payment for water. Customers receive From Diagnosis to Treatment: An Ex- messages appealing to their identity periment to Reduce Non-Payments for as citizens. Positively framed identity Water (Rockenbach, Weiss, and Tonke, appeals include the messages “Please 2020a) be a responsible citizen” or “You are a In a large-scale field experiment in responsible citizen”. Negatively framed cooperation with the public water utility identity appeals include the messages of Namibia, we implement interventions “Please don’t be an irresponsible citizen” to reduce non-payments. We find that or “You are not an irresponsible citizen”. a large fraction of customers seems Negatively framed identity appeals in-

255 D. Research Portraits

crease the collection efficiency (fraction Lima (D’Exelle, Fuhrman, Lopez Vargas, From Diagnosis to Treatment: An Experiment of the bill paid) by 26 percentage points, Tonke, and Verschoor, work in progress). to Reduce Non-Payments for Water 2nd Coller Conference in Behavioral Econom- in comparison to an untreated group, While data collection should have been ics, Tel Aviv University and are about twice as effective as pos- completed by now, the experiment was July 2017 itively framed identity appeals. Survey halted because of the COVID-19 pan- evidence suggests that these effects demic. Further, I am discussing further 2018 are caused by changes in customers’ interventions to reduce water demand in Using Identity Appeals to Decrease Non-Pay- self-perception and rules out alternative Namibia using low-cost text messages. ment for Water in Kosovo mechanisms like social norms, sanction- Natural Experiments and Controlled Field ing, monitoring, or reminder effects. Studies, LMU Munich, Ohlstadt June 2018 Working Papers Self-serving Behavior of the Rich Caus- Rockenbach, B., Tonke, S. and Weiß, A. Using Identity Appeals to Decrease Non-Pay- es Contagion Effects Among the Poor (2020a). From Diagnosis to Treatment: An Ex- ment for Water in Kosovo (Rockenbach, Tonke and Weiss, 2020b) periment to Reduce Non-Payments for Water. 2018 Economic Science Association World Working paper. Meeting, HU Berlin June 2018 In a lab-in-the-field experiment, we study Rockenbach, B., Tonke, S. and Weiß, A. how the prosocial behavior of inhabi- (2020b). Self-Serving Behavior of the Rich Using Identity Appeals to Decrease Non-Pay- tants of an impoverished neighborhood Causes Contagion Effects among the Poor. ment for Water in Kosovo Revise and resubmit at the Journal of Eco- in Namibia is influenced after being 4th Maastricht Behavioral Economic Policy nomic Behavior and Organization. Symposium, Maastricht University informed about the prosocial or egoistic June 2018 behavior of either a rich or a poor com- Tonke, S. (2020). Imperfect Procedural Knowledge: Evidence from a Field Experiment From Diagnosis to Treatment: An Experiment parison group. We find that the poor be- to Encourage Water Conservation. Working to Reduce Non-Payments for Water have significantly less prosocially when paper. 33rd Annual Congress of the European Eco- they learn about the egoistic behavior of nomic Association, University of Cologne the rich. Yet, neither the prosocial behav- August 2018 ior of the rich nor information on how Work in Progress other poor individuals behaved affects 2019 D’Exelle, B., Fuhrman, H., Lopez Vargas, the behavior of the poor. Our data sug- K., Tonke, S. and Verschoor, A., Boosting Imperfect Procedural Knowledge: Evidence gest that the drop in prosocial behavior Participation in Recycling Programs: A Field from a Field Experiment to Encourage Water on the part of the poor is caused by the Experiment in Lima. Conservation Natural Experiments and Controlled Field violation of a social justice norm: The Tonke, S., Using Identity Appeals to Decrease Studies, LMU Munich, Ohlstadt poor expect the rich to be prosocial, and Non-Payment for Water in Kosovo. June 2019 they are surprised if they act differently. Imperfect Procedural Knowledge: Evidence from a Field Experiment to Encourage Water Prizes Conservation Research Agenda 2020 Environmental and Development Economics Research Seminar, University of Hamburg My research agenda for the coming 1st Prize for excellence in applied develop- November 2019 years revolves around two main tasks. ment research (Dissertation Prize) awarded First, my work at the institute builds on by the German Economic Association and 2020 KfW Development Bank prior work done during my time as a Imperfect Procedural Knowledge: Evidence PhD student. In the context of projects from a Field Experiment to Encourage Water 1-3, I analyze and collect new datasets Lectures and Presentations Conservation providing new insights with respect to 35th Annual Congress of the European Eco- (since 2017) nomic Association (Virtual) the persistence of treatment effects, the August 2020 benchmarking of price and non-price 2017 interventions to curb water demand, Imperfect Procedural Knowledge: Evidence From Diagnosis to Treatment: An Experiment and exploring heterogeneous treatment from a Field Experiment to Encourage Water to Reduce Non-Payments for Water Conservation effects among subgroups of water KfW Development Bank Water Sector Semi- Verein für Socialpolitik (VfS) Annual Confer- users. Second, I am developing new nar, Königstein ence (Virtual) partnerships and exploring research February 2017 September 2020 opportunities with existing partners to conduct field experiments with high policy relevance. For example, we study how to improve plastic bottle recycling in

256 Using Identity Appeals to Decrease Non-Pay- ment for Water in Kosovo Research Seminar (scheduled), University of Economics, Prague October 2020

Teaching Summer term 2018 Experimental Methods (Lecture and Exercise) University of Cologne

Summer term 2019 Experimental Methods (Lecture) University of Cologne

Professional Activities

Referee for

Experimental Economics, Journal of Economic Behavior & Organization, World Development

257 D. Research Portraits

258 Daniel Toribio-Flórez

Summary Report from the Personality and Social Psychol- ogy Bulletin. Furthermore, it has estab- In October 2017, I joined the Moral lished the baseline for a set of follow-up Courage Research Group at the Max studies that aim to dig into the motiva- Planck Institute for Research on Col- tional mechanisms of the effect of ambi- lective Goods as a doctoral candidate. guity on costly third-party punishment. Before that, I completed a research Master’s degree in social psychology Related to the previous project, we at VU Amsterdam, where I started to developed a second investigation within conduct my first research projects. the frame of the current coronavirus Since then, my research has broadly pandemic (Toribio-Flórez, Fahrenwaldt, been in the domain of social and moral Baumert and Sasse, work in progress). judgment and its impact on behavior. Under the assumption that the irruption In particular, I focused my work on how of this new, unexpected global health social and moral judgment occurs under emergency implied substantial ambi- Contact conditions of limited (i.e., uncertainty) or guity about the social appropriateness conflicting (i.e., ambivalent) situational of certain behavior (e.g., use of public [email protected] information, and how it translates into spaces), we questioned whether the behavior under such circumstances. governmental measures regarding phys- https://www.coll.mpg.de/ ical distancing would help ameliorate daniel-toribio-florez Since the beginning of my PhD, I have this ambiguity. To address this issue, we investigated a specific phenomenon used the case of Germany as a natural within the overarching framework of experiment. Specifically, we assessed moral courage, namely, costly third-party whether the introduction of regulatory punishment. This kind of behavior refers measures of physical distancing by the to the costly reaction of a third party German government exerted any influ- against the violator of a moral or social ence on people’s perception of social norm. My focus has been whether the norms about this kind of behavior, as ambiguity, often affecting the interpre- well as on people’s willingness to inter- tation of a behavior as a norm violation, vene against the transgression of these has affected the reaction of the third norms. Although we did not observe a party. In three different studies, we ob- change in the perceived ambiguity of serve that, under ambiguity of the norm social norms, the governmental mea- violation, third parties are more reluc- sures seemed to affect the perception tant to engage into costly punishment, of social norms of physical distancing. and especially those who experience Moreover, I observed an undoubtedly higher dispositional concerns for justice. robust relationship between people’s While this individual justice sensitivity personal norms and their willingness to positively predicts punitive reactions intervene against their transgression, against perpetrators, this does not seem which highlights the importance of per- to be the case in a situation where the sonal attitudes towards social norms in norm violation is ambiguous. Given that the explanation of intervention behavior. an ambiguous norm violation entails We are currently working on a report of the possibility of punishing unfairly, the results of this project, which we will our assumption is that third parties submit as a manuscript to a special is- with dispositional justice concerns do sue of Social Psychology and Personality not exert punishment in order to avoid Science on COVID-19-related research. creating unfairness themselves. This set of findings is the basis of a manuscript Besides these two main projects, my re- (Toribio-Flórez, Sasse and Baumert, search has been related to the construct R & R) which recently received revisions, of attitudinal ambivalence from two with the possibility of resubmission, different ends. First, I investigated the

259 D. Research Portraits

strategic expression of ambivalence for vey will be shared in the form of an inter- 19th European Conference on Personality. the enhancement of interpersonal liking. nal report within the Max Planck Society. Zadar, Croatia July 2018 This project started as my Master’s thesis, but has evolved into a manu- Moral Courage under Ambiguity: The Mod- script, which was recently published in Publications (since 2017) erating Role of Justice Sensitivity. (Invited Frontiers in Psychology (Toribio-Flórez, Talk) (with Baumert, A., Halmburger, A. and Sasse, J.) van Harreveld and Schneider, 2020). Articles in Peer-Reviewed Journals Symposium on “Moral Courage” in the Annual Moreover, I applied my background in Toribio-Flórez, D., van Harreveld, F. and Congress of the German Association of Psy- the study of ambivalence to the con- Schneider, I.K. (2020). Ambivalence and chology (DGPs). Frankfurt, Germany text of moral courage and intervention Interpersonal Liking: The Expression of Am- September 2018 behavior. Specifically, I developed the bivalence as Social Validation of Attitudinal Conflict.Frontiers in Psychology. 11:525301. Moral Courage under Ambiguity: The Mod- conceptual framework of a research erating Role of Justice Sensitivity. (Invited line, focused on how the ambivalent Toribio-Florez, D., Anneser, L., deOliveira- Talk) (with Baumert, A., Halmburger, A. and Lopes, F. N., Pallandt, M., Tunn, I. and Windel, evaluation of a norm transgression Sasse, J.) H. (forthcoming). Where Do Early-Career Conference of Dutch Association of Social could potentially hinder third-party Researchers Stand on Open Science Practic- Psychologists (ASPO). Nijmegen, Nether- reactions against it. I conducted several es? A Survey within the Max Planck Society. lands pilot studies to establish an optimal Frontiers in Research Metrics and Analytics. December 2018 experimental paradigm to test this idea. Ambivalence for Ambivalents: The Role of Although more piloting is necessary, I Revise & Resubmit Attitudinal Ambivalence in Interpersonal plan to develop this third complemen- Liking. (Invited Talk) (with van Harreveld, F. Toribio-Florez, D., Baumert, A. and Sasse, and Schneider, I. K.) tary research line during my PhD. J. (R & R). “Proof under reasonable doubt”: Seminar, “The Psychology of Ambivalence: Ambiguity of the Norm Violation as Boundary Causes and Consequences of Mixed Feel- Condition of Third-Party Punishment. Person- Last, but not least, I have a genuine ings”, University of Cologne, Germany ality and Social Psychology Bulletin. interest in the big challenges that have December 2018 affected science in recent years, and perhaps more pronouncedly the social 2019 sciences (e.g., reproducibility crisis, Work in Progress Moral Courage under Ambiguity: The Moder- fraud). Thus, during my PhD, I have Toribio-Flórez*, D., Fahrenwaldt*, A., Sasse, ating Role of Justice Sensitivity. (Poster) been actively involved in different Open J. and Baumert, A. (2020). The Effect of Gov- (with Baumert, A., Halmburger, A. and Science-related projects. For example, ernmental COVID-19 Measures on Physical Sasse, J.) Distancing Norms and Intervention against I participated in a multilab registered Pre-conference on “Justice and Morality” at Deviations: A Case Study in Germany. SPSP Convention 2019. Portland, OR, United replication project on hostility priming (*shared first authorship) States effects, which was in principle accepted February 2019 for publication in Collabra: Psychology Multilab Replication Projects (McCarthy, Gervais et al., 2018). Further- Ambivalence for Ambivalents: The Role of Attitudinal Ambivalence in Interpersonal McCarthy, R. J., Gervais, W., Baumert, A. To- more, I was an active member of the Liking. (Invited Talk) (with van Harreveld, F. ribio-Flórez, D., et al. (in-principle acceptance), Open Science working group of the Max and Schneider, I. K.) A Multi-Site Collaborative Study of Hostile Pre-conference on “Attitudes and Social In- Planck Society PhDnet, whose goal is Priming Effects. Collabra: Psychology. the promotion of Open Science stan- fluence” at SPSP Convention 2019. Portland, OR, United States dards within the Max Planck Society. February 2019 Within this working group, I coordinated Grants the elaboration of a large-scale survey, 2020 which assessed the stance and imple- EASP Travel Grant, awarded to support a research visit at Brown University, to work Third-Party Punishment under Ambiguity: mentation of Open Science practices with Prof. Oriel FeldmanHall (January 2020 – The Moderating Role of Justice Sensitivity. by early-career researchers of the Max April 2020) (Poster) (with Sasse, J. and Baumert, A.) Planck Society. The results of this SPSP Convention 2020. New Orleans, LA, survey will be published as an internal United States February 2020 report of the Max Planck Society, and Lectures and Presentations The main results of this survey were (since 2017) Where Do Early-Career Researchers Stand summarized in a manuscript, which was on Open Science Practices? Survey Data recently accepted for publication in a 2018 from the Max Planck Society. (Invited talk) (with Anneser, L., deOliveira-Lopes, F. N., special issue of Frontiers in Research Pallandt, M., Tunn, I. and Windel, H.) Metrics and Analytics (Toribio-Flórez, Moral Courage under Ambiguity: The Mod- erating Role of Justice Sensitivity. (Invited SIPS Pre-Conference at SPSP Convention Anneser, deOliveira-Lopes, et al., forth- Talk) (with Baumert, A., Halmburger, A. and 2020. New Orleans, LA, United States coming). Further findings from the sur- Sasse, J.) February 2020

260 Professional Activities

Ad-hoc reviewer

Journal of Economic Psychology Journal of Personality and Social Psychol- ogy: Personality Processes and Individual Differences European Journal of Social Psychology

Memberships

Postgraduate Member of the European Asso- ciation of Social Psychology (EASP)

Society for the Improvement of Psychological Science (SIPS)

Society of Personality and Social Psychology (SPSP)

261 D. Research Portraits

262 Matthew Trail

I joined the institute in October 2020. It has been my observation as a Before coming to the institute, I was a practitioner that this decision-making practicing attorney in the United States framework is hampered by a number of working for legal aid law firms in Florida cognitive and racial biases that nega- and Texas. My expertise is in represent- tively affect the lives of foster children. ing children in the foster care system, It is my hypothesis as a researcher that especially those with disabilities and these biases can be identified and pos- mental health issues. sibly reduced through the use of a different type of decision-making framework. My first year at the institute will primarily be taking graduate courses in prepa- I intend to test how foster-care case- ration for my research project. I will be workers make best-interest decisions, researching bias and decision-making in which criteria they use for different the foster care system. I will be focus- types of decisions, and how they rank ing on best-interest decision-making, the best-interest factors set out in the Contact which is the legal framework for how law. If possible, I would also like to do judges, attorneys, and caseworkers are these same tests with attorneys and [email protected] supposed to make decisions that affect judges to see if there is any difference foster children. Best-interest decisions in how the different professions make https://www.coll.mpg.de/matthew-trail are made for all aspects of the life of best-interest decisions. a foster child from the small to the life-altering. Whether a child is allowed This is all novel research as best-interest to participate in after-school activities, decision-making has not been specifi- if they are allowed to visit a family cally tested. member, or even if they are sent to live in a residential treatment facility are all under the best-interest rubric.

263 D. Research Portraits

264 Anna Untertrifaller

Research Statement younger children not only displayed lower levels of diligence, but were also more I worked at the Max Planck Institute for likely to procrastinate an effortful task. Research on Collective Goods from 1 June 2017 until 30 April 2019. During In a third project in this line of research, my time at the institute – where I did together with Matthias Sutter, Michael part of my PhD studies – I belonged to Weyland (Pädagogische Hochschule Matthias Sutter’s Experimental Econom- Ludwigsburg), and Manuel Froitzheim ics Group. My research focused on two (PhD student at the University of Sie- broad areas of interest: (i) behavior in gen), we studied the malleability of hu- children and adolescents, and (ii) moral man preferences in a non-adult subject behavior. I investigated these concepts pool. In particular, we investigated how a by running experiments both in the field school intervention on Financial Literacy (kindergarten, school) and in the lab. affected the time and risk preferences of adolescents (Sutter, Weyland, Untertri- Contact Behavior in Children and Adolescents faller, Froitzheim, in progress). We found that teaching financial literacy made [email protected] Studying the behavior of children has re- adolescents more patient, less pres- ceived a growing interest in economics ent-biased, and slightly more risk-averse. https://www.coll.mpg.de/ over the last years. One reason for this anna-untertrifaller is that studies with children contribute Moral Behavior to a better understanding regarding the source of heterogeneity in human pref- The second line of research concerns erences and outcomes we observe later people’s behavior in situations where on in life. This was also the aim of a joint they face a trade-off between following research project undertaken by Matthias the principle of adhering to stated rules Sutter and me, where we proposed fam- or circumventing them for the maximi- ily background as one explanatory vari- zation of their own payoff. Experimental able for differing levels of cooperation evidence shows that – in contrast to (Sutter & Untertrifaller, 2020). While we standard economic predictions – people found that parents with higher education not only maximize their own earnings, levels had children who were more likely but are sensitive to the way this max- to cooperate, we saw that the likelihood imization is achieved. In this regard, of both parents and children to cooper- for instance, people decide not to lie ate was positively, albeit insignificantly, even if lying in monetary terms would aligned. Moreover, we observed that the be beneficial to them. On the other parents’ subjective perception of their hand, fraudulent employee behavior – child to be superior to peers was related including cases in which employees to higher cooperation rates in children. inflate their expenses, working hours, or efforts – costs industries and countries Studies with children also shed light on all over the world billions of dollars the development of people’s preferenc- and shows that unethical behavior is es and skills as they generate insights widespread in business interactions. on whether economic preferences and behavioral patterns remain stable from In this regard, together with Thomas early on in life, or are shaped with time. Lauer (University of Cologne), we stud- In this regard, a research project with ied how the dishonesty of other group Matthias Sutter and Claudia Zoller want- members affects individual lying behaved to make a contribution by investigat- ior (Lauer & Untertrifaller, working paper, ing diligence and its development during 2019). We found that a considerable early childhood (Sutter, Untertrifaller, number of people did condition their dis- Zoller, work in progress). We found that honesty on the dishonesty of the other

265 D. Research Portraits

members in their group. This happened independently of whether or not the group members’ dishonesty had mutual monetary effects on each another.

In another project, together with Caro- line Stein (University of Cologne), we investigated how assuming responsibility for an ethical or unethical work environment affected subsequent performance (Stein & Untertrifaller, in progress). We found that workers who were forced to work in an environment that violated their own ethical standards performed worse than workers whose own ethical standards were not violated by an imposed environment.

Publications (since 2017)

Articles in Peer-Reviewed Journals Sutter, M. and Untertrifaller, A. (2020). Children’s Heterogeneity in Cooperation and Parental Background: An Experimental Study, Journal of Economic Behavior & Organization, 171, 286-296.

Working Paper Lauer, T. and Untertrifaller, A. (2019). Condi- tional Dishonesty.

Lecturs and Presentations (since 2017) Financial Literacy and Economic Preferences MPI Inaugural Conference, Bonn May 2018

266 Eugenio Verrina

Summary Report manipulating their beliefs about others and their perceptions of the world. Since I wrote my last report contribution, quite a few things have changed, and The Differential Effect of Narratives on I am happy to say that most develop- Prosocial Behavior (Hillenbrand and ments were extremely good. I joined Verrina, 2020) the Max Planck Institute for Research In this paper, which is also the first on Collective Goods in October 2016 chapter of my dissertation, we study within a PhD program in economics in how positive narratives (stories in favor collaboration with the Cologne Graduate of a prosocial action) and negative School of the University of Cologne. narratives (stories in favor of a selfish My supervisors are Christoph Engel action) influence prosocial behavior. Our at the MPI and Bettina Rockenbach at main findings are that positive narratives the University of Cologne. During my increase giving of selfish types substan- PhD, I had the opportunity to work with tially, compared to a baseline with no Contact Roberto Weber during a research stay narratives. Negative narratives, on the at the University of Zurich, one of the other hand, have a differential effect. [email protected] most important hubs in behavioral and Prosocial types decrease their giving, experimental economics. In the end while selfish types give more than in the https://www.coll.mpg.de/eugenio-verrina of May 2020, I handed in my disserta- baseline. We argue and provide evidence tion on “Essays on Moral and Ethical in favor of the following interpretation Behavior in Experimental Economics” of our results: narratives offer a bench- and successfully defended it on 14 mark for social comparison, on top of July. In September 2020, I will join influencing perceptions of deserving- the Groupe d’Analyse et de Théorie ness and appropriateness. Subjects are Economique (GATE) in Lyon (France) swayed by narratives and, at the same as a postdoc after having participated time, they compare themselves with the in the 2019 European job market. narrator.

My dissertation reflects my main Upset, But (Almost) Correct: A Robust- research interests. In the four chapters ness Check of di Tella, Perez-Truglia, that constitute my dissertation, I have Babino, and Sigman (2015) (work in investigated the role of moral, ethical, progress) and normative motives in economic This paper is the second chapter of my behavior. Despite the neglect of such dissertation and deals with an essential motives in “standard” economic models, mechanism of motivated reasoning: their role is pervasive and often builds self-serving beliefs. In a recent paper, the very foundation of what makes di Tella et al. (2015) investigate the market and non-market interactions formation of self-serving beliefs justi- work in the real world. I tackle differ- fying unfair behavior in a ``corruption ent aspects of this very broad topic game’’. In some I replicate their study and, in particular, focus on recently with few changes in the design, but fail developed theoretical frameworks that to reproduce their findings. In fact, my see individuals as motivated thinkers results point, if anything, in the opposite (Bénabou and Tirole, 2016; Gino et direction. An accurate analysis reveals al., 2016), who try to feel or appear that the very mechanism the authors moral and often trick themselves by claim to be at work does not find support either in their own or in my data.

267 D. Research Portraits

This paper uncovers the sensitivity of the ``expert’’. I find that experts do not self-serving beliefs and exposes some behave more unethically when the de- The differential effect of narratives of the challenges for the formal model- cision is delegated to them and do not Thurgau experimental economics meeting, ing of these constructs. initiate more unethical behavior either. Konstanz However, they do not intervene to avoid April 2019 Personal norms — and not only social unethical outcomes, thereby ignoring The differential effect of narratives norms — shape economic behavior their private information. This hints at an International Meeting on Experimental and (with Zvonimir Bašić) omission-commission asymmetry in the Behavioral Social Sciences, Utrecht In this paper, which also constitutes behavior of experts. Overall, this leads May 2019 the third chapter of my dissertation, to high negative externalities despite the The dark side of experts we look at social and personal norms presence of experts. ESA European Meeting, Dijon and their relation with image concerns. September 2019 While social norms have received a lot of attention within economics, personal The dark side of experts Working Papers Winter Experimental Social Sciences Institute, norms have been largely neglected. In Bašić, Z. and Verrina, E. (2020). Personal Florence this paper, we propose a simple utility norms — and not only social norms — shape September 2019 framework according to which people economic behavior. MPI Discussion Paper care about their monetary payoff, social 2020/25. 2020 norms, and personal norms. We then de- Hillenbrand, A. and Verrina, E. (2018). The The dark side of experts sign a new two-part experiment to inves- Differential Effect of Narratives on Prosocial Job market seminar, ZEW – Leibniz Center tigate the predictive value of personal Behavior, MPI Discussion Paper 2018/16. for European Economic Research norms across four different games. We Mittone, L., Ploner, M. and Verrina, E., When January 2020 show that personal norms – together the State Doesn’t Play Dice: Aggressive Audit The dark side of experts with social norms and monetary payoff Strategies Foster Tax Compliance, CEEL Working Paper, 2–17. Job market seminar, Erasmus University – are highly predictive of individuals’ be- Rotterdam havior. Personal norms are: i) inherently January 2020 distinct from social norms across a se- Work in Progress The dark side of experts ries of economic contexts; ii) robust to Seminar, University of Innsbruck an exogenous increase in social-image Verrina, E., The Bright and the Dark Side October 2019 concerns, which strengthens the predic- of Experts: Ethical Decision-Making under Asymmetric Information in Teams. tiveness of social norms, but does not The dark side of experts Seminar, University of Innsbruck weaken that of personal norms; and iii) November 2019 complementary to social norms in predicting behavior, as a model with both Lectures and Presentations personal and social norms outperforms (since 2017) Teaching a model with only one of the two norms. Summer term 2018 & 2019 Our results support personal norms as a 2017 Experimental Methods, Tutorials key driver of economic behavior, relevant (Master level) in a wide array of economic settings. When the state doesn’t play dice University of Cologne The Shadow Economy, Tax Evasion and Infor- mal Labor, University of Warsaw Winter term 2019/2020 The Dark Side of Experts: Ethical Deci- July 2017 Experimental Methods, Tutorials sion-Making under Asymmetric Infor- (Master level) mation in Teams (work in progress) 2018 University of Cologne This paper is the last chapter of my When the state doesn’t play dice dissertation and my job-market paper. International Meeting on Experimental and Professional Activities I here investigate the effects of asym- Behavioral Social Sciences, Utrecht metric information on unethical choices May 2018 Referee for taken by teams. Two team members Stories we tell with perfectly aligned incentives can Management Science, International Tax and ESA World Meeting, Berlin Public Finance, Rationality & Society choose between a profitable option, July 2018 with potential negative externalities, and a less profitable option, which has no 2019 negative externality. One team mem- The differential effect of narratives ber has better information about the Seminar, University of Innsbruck presence of the externality, i.e., she is February 2019

268 Yuqi Wang

Overview

I joined the institute on 1 October 2020. Before joining, I completed a BSc in mathematics and economics and an MSc in economics and business administration. Afterwards, I worked as a consultant for several years. One area around which my research agenda will revolve in the coming years is about group intertemporal decision-making theory.

Intertemporal Decisions in Contact the Group Context [email protected] Previous literature on intertemporal choice mainly assesses decisions made https://www.coll.mpg.de/yuqi-wang by individuals. However, the relatively unexplored research on the mechanism of group intertemporal decision-making is of great importance. In many real-life cases, not only a seemingly individual intertemporal decision is actually made in a group context, but it is always a group rather than an individual who makes intertemporal decisions for projects with a long-term horizon nature, such as the ones to control climate change and to combat COVID-19. Therefore, I plan to run experiments to verify the role of a series of factors empirically, such as group size, prosocial traits, and the competitive context in determining a group-discounting rate.

269 D. Research Portraits

270 Carl Christian von Weizsäcker

Macroeconomics and Capital Theory. script in the following direction: A math- Starting in 2009, the main focus of my ematical formalization of the idea of the research was macroeconomics of the division of labor enables us to under- financial crisis and capital theory. I stand the Böhm-Bawerk idea of “round- developed the hypothesis of “the end aboutness of production” as a particular of capital scarcity”. From then on, I form of the more general idea of the di- gave a large number of presentations vision of labor, as originally pronounced and lectures on that topic. A list of by Adam Smith in 1776. We can then un- my presentations from July 2017 till derstand modernity (since roughly 1800) June 2020 is attached. A first printed as a time of an ever-increasing division publication was a full-page newspaper of labor. And thus, in the 21st century, the article in Frankfurter Allgemeine Zeitung standstill of roundaboutness of produc- on 4 June 2010. Many other printed tion (= end of capital scarcity) means a publications followed. (See my list of new phase of modernity, in all likelihood academic publications 2017–2020). with a new mode of the division of labor. Contact “Digitalization” and “CRISPR CAS9” are As opposed to the majority of German buzzwords of an evolving new mode of [email protected] academic economists, my forecast the “Vergesellschaftung der Arbeit”, to already in 2009 was that interest rates quote the description under which Karl https://www.coll.mpg.de/ would remain quite low for a very Marx investigated the division of labor. von-weizsaecker long time. I based this forecast on my analysis of the end of capital scarcity. What are the empirics of this theoretical approach? Here I joined forces At the annual IMF meeting in Novem- with Hagen Krämer of the University ber 2013, Larry Summers, the former of Applied Sciences in Karlsruhe. In U.S. Secretary of the Treasury and a 2019, we published a 335-page book in highly regarded academic economist, German, “Sparen und Investieren im 21. put forward the hypothesis of “secular Jahrhundert – Die Grosse Divergenz”. stagnation”. It overlaps strongly with There, we show the following for the my theory of the end of capital scarcity. OECD countries and China, together Following on this, I initiated a Ger- with almost 3 billion inhabitants: In the man-language e-mail discussion group year 2015, private wealth was almost on macroeconomics (Makrorunde). Ever double private real capital plus land since, many lively discussions have been value, because almost half of it con- going on in this group. I have devoted sists of net public debt. And this at a quite a bit of time to running this group zero real rate of interest! This is ample and participating in the discussions. empirical proof of the end of capital Repeatedly people have told me that scarcity. The economics of COVID-19, the Makrorunde has contributed quite in the meantime, have reinforced the productively to the thinking and debating upward trend in public debt. The book, of macroeconomic policy issues in the somewhat amended, is scheduled German-speaking part of the world. for publication in English next year.

Capital theory is at the core of my propo- Adaptive Preferences. My earlier work sition that capital is no longer a scarce on the theory of endogenously formed resource in the 21st century. In recent preferences has continued – albeit years, I have written a large manuscript very sparsely, due to lack of time. I was with the title “Capital Theory of the invited to give a few lectures on topics Steady State”. It is based on a mod- related to this theory. A large, rather ernization of Böhm-Bawerk´s theory of mathematical, manuscript, written in capital, which was originally published 2013, awaits revision and publication as in 1889. I want to complete this manu- a book.

271 D. Research Portraits

Mixed Items. I am a member of the Read and Remember, Springer Nature Swit- A Break for the Balance of Trade Surplus Academic Advisory Board of the German zerland, 141-142. Friedrich Ebert Foundation, Kocheler Kreis, Berlin Minister of Economic Affairs. In the pe- von Weizsäcker, C. C. (2018). Leviathan 16 June 2017 riod between July 2017 and June 2020, – zum Gewaltmonopol des Staates – Die ökonomische Perspektive, in: H. J. Thieme, J. Fiscal Policy in Crisis Times the board had 15 two-day meetings. I Haucap (Eds.), Wirtschaftspolitik im Wandel, attended most of them. I therefore had Humboldt-Viadrina Platform, Berlin Berlin/Boston, 133-151. 3 July 2017 to familiarize myself with quite a few von Weizsäcker, C. C. (2017). Die gesamt‑ policy topics that were on the agenda of wirtschaftlichen Perspektiven und deren Leviathan: The State Monopoly on Violence the Board. Verhältnis zur Mikroökonomie, in: E. Kempf, and the Fight against Protectionism K. Lüderssen, K. Volk, M. Jahn, C. Prittwitz, R. Annual Meeting of the Verein für Socialpolitik, Schmitt (Eds.), Unbestimmtes Wirtschafts- Vienna strafrecht und gesamtwirtschaftliche Pers- 6 September 2017 Publicatons (since 2017) pektiven, Berlin, 9, 22-34. Lectures on Capital Theory Articles in Peer-Reviewed Journals University of Zurich 7-8 November 2017 von Weizsäcker, C. C. (2020). Böhm-Bawerk Honors and Hicks modernized, European Journal of Secular Stagnation? A View from the Theory Economics and Economic Policies: Interven- Doctor honoris causa rerum politicarum, of Capital tion, 17(2), 208-219. University of Freiburg Technical University Darmstadt 28 November 2017 von Weizsäcker, C. C. (2020). Ende der Kapitalknappheit und neuer Protektionismus, Wirtschaftsdienst, 100(1), 25-28. Lectures and Presentations 2018 von Weizsäcker, C. C. (2019). Capital Abun- (since 2017) Population Growth and the Rate of Interest dance and Its Consequences for Trade Policy, 51st Radein Conference, Radein, Italy 2017 Intereconomics, 54(5), 275-279. 22 February 2018 Discussion about European Macroeconomic Distributional Effects of Public Debt Policy Journal Articles (not peer-reviewed) Verein für Socialpolitik, Committee on Eco- Max Planck Institute for the Study of nomic Policy, University of Witten-Herdecke Societies, Cologne von Weizsäcker, C. C. (2017). Global-Soziale 8 March 2018 Markwirtschaft und die Flüchtlingsfrage, 31 January 2017 Journal for Markets and Ethics, 54(5), 1-11. Comment on Terzi Paper: In Defense of the Leviathan: The Power of the State Loanable Funds Theory – The Economic Perspective OENB (Austrian National Bank), Economics 50th Radein Seminar, Radein, Italy Books Conference, Vienna 17 February 2017 von Weizsäcker, C. C. and Krämer, H. (2019). 14 March 2018 Sparen und Investieren im 21. Jahrhundert – Leviathan: The Power of the State What Does Neoclassical Welfare Economics die Große Divergenz, Wiesbaden: Springer- – The Economic Perspective Want to Achieve? Gabler. XXII + 335 p. North Rhine-Westphalian Academy of Conference on Reshaping Economics, Evan- Sciences, Humanities and the Arts, Düssel- gelische Akademie Tutzing dorf 27 April 2018 Book Chapters 22 February 2017 von Weizsäcker, C. C. (2020). Böhm-Bawerks Interview on my Research through my Life The Co-Evolution of Democracy and the temporale Kapitaltheorie: Ihre Modernis- University of Leipzig, Leipzig Colloquium Market System ierung und ihre heutige Aktualität, in: H.-M. 7 June 2018 Trautwein (Ed.), Studien zur Entwicklung der Conference on Political Economy of Democ- racy and Dictatorship, University of Münster, ökonomischen Theorie, Berlin: Duncker und Saving and Investing in the 21st Century 23 February 2017 Humblot, 19-40. Ifo Institute, Munich 2 July 2018 von Weizsäcker, C. C. (2019). Der Neo-Ricard- The Abhorrence against Delimitation in ianismus: Eine Fortsetzung klassischer The- Economic Theory Energy and Capital orie: Kommentar zum Beitrag von Bertram Staufen-Faust Conference, Staufen Vierzig Jahre Energieforschung – Farewell Schefold, in: List Forum, Spezialheft: M. Erlei 5 May 2017 Meeting for Georg Erdmann, Technical Univer- und J. Haucap (Eds.), Mainstream vs hetero- sity Berlin doxe Ökonomik: Forschungsprogramme im Trump, Brexit, Protectionism – Challenges 30 September 2018 Vergleich, 44(4) 707-716. for the European Economy Hochschule Karlsruhe von Weizsäcker, C. C. (2019). Recommends Capital and Time: Hicks and Böhm-Bawerk 10 May 2017 “Trills Instead of T-Bills: It’s Time to Replace Modernized Part of Government Debt with Shares in GDP” Annual FFM Conference, Session on The Global Social Market Economy by M. J. Kamstra and R. J. Shiller, in: Bruno S. Cambridge-Cambridge Controversy After 50 Casino-Gesellschaft Berlin Frey and C. Schaltegger (Eds.) 21st Century Years, Berlin 17 May 2017 Economics – Economic Ideas You Should 26 October 2018

272 Decline of Liberalism due to Market Concen- Book launch with Hagen Krämer, “Saving tration? and Investing in the 21st Century – The Great University of Tübingen, NOUS Conference on Divergence”, and discussion with a panel of the Lippman Colloquium Eighty Years Ago academic economists 8 November 2018 University of Frankfurt, Center for Financial Studies (CFS) 2019 27 February 2020

Remembrances of Academic Economists I Book launch with Hagen Krämer, “Saving Met in the United Kingdom: Joan Robinson, and Investing in the 21st Century – The Great Nicholas Kaldor, Richard Kahn, Richard Divergence” Stone, Frank Hahn, James Meade, David Evangelische Akademie Tutzing, Conference Champernowne, James Mirrlees, Michael on “The Role of the State in the Great Trans- Farrell, Christopher Bliss, Amartya Sen, formation” John Hicks, Richard Goodwin, Nicholas 4 March 2020 Stern, John Flemming, Richard Layard, Terence Gorman, John Vickers, Oliver Hart, COVID-19 and Public Finance Paul Klemperer, Angus Deaton, and Lionel Video meeting, Arbeitskreis II of the parlia- Robbins mentary group of the Free Democrats (FDP), Cologne (on the occasion of Brexit negotia- German Bundestag tions) 16 June 2020 2 April 2019 COVID-19 and Public Finance European Fiscal Policy Video meeting of the parliamentary group of Humboldt Forum at Humboldt University, the FDP, chaired by Christian Lindner. Discus- Berlin sion with Lars Feld (Chairman of the German 8 May 2019 Council of Economic Experts) 30 June 2020 Saving and Investing in the 21st Century – The Great Divergence Cologne, Book launch with Hagen Krämer Professional Activities 8 October 2019 Memberships Book launch with Hagen Krämer: Saving and Investing in the 21st Century – The Great Fellow of the Econometric Society Divergence Awarded the Hans Möller Medal by the Alum- Founding Member of the European Economic ni Group of Munich Economists, Munich Association (EEA) 22 October 2019 Foreign Honorary Member of the American Book launch with Hagen Krämer: Saving and Academy of Arts and Sciences Investing in the 21st Century – The Great Divergence Member of the North Rhine-Westphalian Annual FFM Conference, Berlin Academy of Sciences, Humanities and the 29 October 2019 Arts

2020 Member of the German Academy of Techni- cal Sciences Book launch with Hagen Krämer: Saving and st Investing in the 21 Century – The Great Member of the Academic Advisory Board of Divergence the German Ministry of Economic Affairs DIW (Deutsches Institut für Wirtschaftsfor- schung) 9 January 2020

Book launch with Hagen Krämer: Saving and Investing in the 21st Century – The Great Divergence Annual Meeting of German Keynes Society, “Optimal Public Debt” 18 February 2020

273 D. Research Portraits

274 Fabian Winter

The past three years have been very very promising results. In Álvarez Ben- productive and exciting. My work has jumea and Winter (2018), we show that further zoomed in on the foundations hate speech can be effectively moderat- of normative change in several ar- ed by censoring comments that are too eas, such as normative change due negative. Observing peer punishment, to demographic change and migra- i.e., calling out inappropriate comments, tion, in social media, and with regard has little to no effect on other people’s to the foundations of cooperation. comments. A related project exploits the Furthermore, I have started several occurrence of a terrorist attack during replication projects and continued my the data collection of hate comments research on the sociology of science. (R&R at PNAS). We show that social norms are particularly important in the Together with Nan Zhang and col- aftermath of these events, when people © Thomas Hartmann leagues from the University of Zurich, I seem to seek guidance on what to do have worked on a series of field experi- and say. While a more hostile environ- Contact ments to investigate the consequences ment motivates some people to post of ethnic diversity on the validity of racist comments even without a terrorist [email protected] social norms. In Zhang and Winter attack, the difference between neutral (2018), we show that sanctioning behav- and hostile environments is severely https://www.coll.mpg.de/fabian-winter ior differs substantially depending on amplified after the attacks, when the al- whether migrants or natives transgress ready very negative comments become a norm, and whether the observer is a even more negative. Together with Ama- migrant or a native. While migrants and lia Álvarez Benjumea and Nan Zhang, we natives sanction ingroup members to are currently collecting new longitudinal about the same extent, natives are much and panel survey data. We use the run- more likely to sanction migrants than up to the 2020 U.S. presidential election vice versa. A second project together in order to “track the Trump Effect” of with Nan Zhang, Amelie Aidenberger, how norms of speech change over the and Heiko Rauhut (Zhang et al. 2019) course of a campaign (in preparation). takes a closer look at status differences among migrants. We show that helping I have continued my work on the a migrant depends to a large degree on foundations of cooperation and social plausible deniability: if their phone is norms in several projects over the past clearly visible, most Swiss people would three years. A large collaboration with borrow their phone for a short call when researchers from all over the world asked for it, irrespectively of whether investigates the diverse patterns of the person asking is Swiss, German, or social mindfulness and its relation to from another national background. This cooperative actions around the globe changes when the phone is not visible: (Van Doesum et al., R&R at PNAS 2020). in this context, people with a Swiss In Álvarez et al. (2020), we look at the accent are much more likely to receive coordinating aspects of descriptive the phone than Germans, and to an norms in cooperation problems and even lesser extent, other minorities. The show that it is paramount for coopera- corresponding paper recently won the tion to announce publicly what is expect- Best Article Award from the European ed of the team members. Rauhut and Consortium of Sociological Research. Winter (2017) theoretically investigate In another stream of research, Amalia how normative conflicts impact the ef- Álvarez Benjumea and I looked into how fectiveness of punishment in situations the things that “can be said” in social where cooperation norms and fairness media change depending on descriptive norms can give competing recommen- norms. While this research area is still dations. A joint paper with Axel Franzen very active, we have already published (2017) studies the effectiveness of peer

275 D. Research Portraits

punishment and how it relates to the project uses a matching approach to Zhang, N., Aidenberger, A., Rauhut, H. and number of potential sanctioners. This study the effect of strategically citing Winter, F. (2019). Prosocial Behavior in Interethnic Encounters: Evidence from a paper eventually lead to a three-year certain authors in the hope of receiv- Field Experiment with High- and Low-Status project funded by the German Research ing reciprocal citations in return. Immigrants. European Sociological Review, Foundation (DFG). In this project, Adrian 35(4), 582–597. Hillenbrand and I are investigating the Finally, I have conducted and contribut- Crosetto, P., Weisel, O. and Winter, F. (2019). consequences of population uncertainty, ed to a number of replication projects. A flexible z-Tree and oTree implementation of i.e., uncertainty about the number of In Winter and Diekmann, we replicate the Social Value Orientation Slider Measure. Journal of Behavioral and Experimental a recent de Vohs et al. study on the players in a game, on volunteering be- Finance, 23, 46–53. havior. In Hillenbrand und Winter (2018), psychological consequences of money we show that volunteering in the volun- on a range of outcomes, for instance Winter, F., Rauhut, H. and Miller, L. (2018). Dynamic Bargaining and Normative Conflict. teer’s dilemma in fact increases under voluntary donations and other non-stra- Journal of Behavioral and Experimental Eco- population uncertainty, when studied in tegic decisions. While the originally nomics, 74, 112–126. a lab setting. Going to the field, however, reported results largely hold, they do Álvarez Benjumea, A. and Winter, F. (2018). paints a different picture: In a large- not translate into strategic situations. Normative Change and Culture of Hate: An scale online labor experiment (Werner et Breznau et al. (2019, in preparation a, Experiment in Online Environments. European al. 2020), we find that population uncer- b) take a very different approach: in this Sociological Review, 34(3), 223-237. tainty in small to very large teams has replication study, almost 100 teams Franzen, A., Mader, S. and Winter, F. (2018). no effect on volunteering, and neither replicated the same hypothesis on the Contagious Yawning, Empathy and Their Relation to Prosocial Behavior. Journal of does the group size. In Hillenbrand and same survey data set. The central claim Experimental Psychology: General, 147(12), Winter (in preparation), we theoretically of the original article was that immigra- 1950–1958. predict the emergence of specific co- tion decreases support for the welfare Winter, F. and Zhang, N. (2018). Social Norm operation norms in stable and unstable state in 17 OECD countries. Most of Enforcement in Ethnically-Diverse Commu- social relations. A test of our predictions the replication attempts, including ours, nities. PNAS – Proceedings of the National in a lab experiment shows results that failed to confirm this claim without any Academy of Sciences, 115(11), 2722–2727. are very close to our theoretical pre- doubt. We are currently working on two Hillenbrand, A. and Winter, F. (2018). Volun- dictions. In a related paradigm, Mitesh papers which we intend to submit to teering under Population Uncertainty. Games Kataria and I have studied whether Science and the American Sociological and Economic Behavior, 109, 65–81. friendship networks can be structured Review, respectively. Finally, Nan Zhang, Rauhut, H. and Winter, F. (2017). Vernetzung by how trustworthy people are towards Johanna Gereke, David Kretschmer, und Positionierung der Kölner Zeitschrift für Soziologie und Sozialpsychologie (KZfSS) outsiders (Kataria and Winter 2020). In and I are part of the SCORE replica- in der länder-, disziplinen- und sprachüber- Franzen et al. (2018), we study visible tion initiative headed by Brian Nosek. greifenden Diskussion. Kölner Zeitschrift für markers of empathy and its relation to With respect to the claim selected for Soziologie und Sozialpsychologie, (Suppl 1) pro-social behavior. In an experimental replication by SCORE, we successfully 69, 61–74. study, we show that being susceptible replicated a network study published to contagious yawning correlates with in the American Journal of Sociology. Articles in Edited Volumes etc. a high degree of empathy for others. However, in the process, we found a Winter, F. and Diekmann, A. (2020). The Finally, in Winter et al. (2018a), we show number of serious flaws in the original Psychological Consequences of Money: how different normative cues can evolve study’s statistical analysis, which we are Two Replications and Four Extensions. In: over the course of ongoing negotiations, currently addressing in a separate com- Buskens, V., Corten, R. and Snijders, C. (eds.) and how normative conflict shapes ment to the American Journal of Sociol- Advances in the sociology of trust and cooperation: theory, experiments, and applications. the outcomes of fairness problems. ogy (Kretschmar et al., in preparation). Oldenbourg: De Gruyter, 309-318. Rauhut, H., Winter, F. and Johann, D. (2018) Over the past years, I have also made Does the Winner Take It All? Increasing further progress in understanding pub- Publications (since 2017) Inequality in Scientific Authorship. In: Scott, lication patterns in different scientific R. A., Kosslyn, S. M. and Buchmann, M. (eds.) disciplines. In Rauhut et al. (2018), we Publications in Peer-reviewed Journals Emerging Trends in the Social and Behavioral Sciences, 1-14. study how early “success” in citations Álvarez Benjumea, A. and Winter, F. (2020). leads to future success. Rauhut and The Breakdown of Anti-Racist Norms: A Winter, F. and Franzen, A. (2017). Diffusion Winter (2017) provide a bibliometric Natural Experiment on Normative Uncertainty of Responsibility in Norm Enforcement: Evi- dence from an N-Person Ultimatum Bargain- and historical case study on differenc- after Terrorist Attacks. PNAS, 117(37), 22800–22804. ing Experiment. In: Prezpjorka, W. and Jann, es in German sociology journals. We B. (eds.). Social dilemmas, institutions and have also made considerable prog- Winter, F. and Kataria, M. (2020). You Are the evolution of cooperation. Oldenbourg: De Who Your Friends Are?: An Experiment on Ho- ress in Winter, Rathmann, and Rauhut Gruyter, 303–326. mophily in Trustworthiness Among Friends. (2020). This computationally complex Rationality and Society, 32(2), 223–251.

276 Rauhut, H. and Winter , F. (2017). Types of Breznau et al. (In preparation b). Does Immi- Normative Conflicts and the Effectiveness gration Undermine Public Support for Social of Punishment. In: Prezpjorka, W. and Jann, Policy? A Crowdsourced Re-Investigation. B. (eds.). Social dilemmas, institutions and the evolution of cooperation. Oldenbourg: De Hillenbrand, A. and Winter, F. (in preperation). Gruyter, 239–258. How the Stability of Social Relations Shapes the Emergence of Latent Norms. Álvarez Benjumea, A., Winter, F. and Zhang, Revise & Resubmit N. (ongoing). Tracking the Trump Effect: A Long Term Study of How Political Campaigns Van Doesum, N., Ryan, J., Murphy, O., Change the Unsayable. Aharonov-Majar, E., ... , Winter, F., ... (2020) Social Mindfulness Across the Globe. R & R: Álvarez Benjumea, A., Hillenbrand, A., Zhang, PNAS – Proceedings of the National Academy N. and Winter, F. (in preparation). Risk per- of Sciences. ception and Normative Change during the COVID-19 Outbreak. Winter, F., Rathmann, J. and Rauhut, H. (2020). The Increasing Dominance of Networking in the Production of Knowledge. R & R: PNAS – Proceedings of the National Academy of Sciences. Scholarships and Awards DFG-Project Grant for the Project “Volun- teering under Population Uncertainty”, one Submissions postdoc position + research funds. Álvarez Benjumea, A., Freund, L., Luckner, European Sociological Review, Best Article of K. and Winter, F. (2018). Public Signals as the Year Prize for articles published in the in Coordination Devices: The Moderating Effect 2019 for: Zhang, N., Aidenberger, A., Rauhut, of Group Identity. H. and Winter, F. (2019). “Prosocial Behavior Hillenbrand, A., Werner, T. and Winter, F. in Interethnic Encounters: Evidence from a (2019). Volunteering at the Workplace Under Field Experiment with High- and Low-Status Incomplete Information: Teamsize Does Not Immigrants”. Matter. MPI Discussion Paper 2020/4. Böhm, R., Fleiß, J., Rauhut, H., Rybnicek, R. and Winter, F. (2017). Representative Evi- Organized Workshops dence on Social Value Orientation in Austria. Together with David Hugh-Jones of University of East-Anglia, I am organizing the annual interdisciplinary Cultural Transmission Working Papers and Social Norms workshop. Speakers in Breznau, N., Rinke, E. M., Wuttke, A., Adem, recent years included Bob Sugden, Christina M., Adriaans, J., ..., Winter, F., ... (2019). Bicchieri, Pete Richerson, Joe Henrich, Simon The Crowd- sourced Replication Initiative: Gächter, and many other young and distin- Investigating Immigration and Social Policy guished researchers. The 2017 Workshop Preferences. Executive Report. Universität was held at UEA in Norwich, the 2018 edition Mannheim. was held at MIT in Cambridge, MA, and the 2020 edition was rescheduled to December Rauhut, H. and Winter, F. (2018). Der Markt 2020. der Aufmerksamkeit in der Soziologie: Trends im Publizieren, Zitieren und Netzwerken. ISA World Congress (Toronto), Section 45: SSRN 3264134. Mechanisms of Normative Change. Winter, F. (2017). Real Effort Tasks in Eco- nomic Experiments: An Empirical Compar- ison of Tasks and their Behavioral Effects. mimeo, MPI Collective Goods. Professional Activities Reviewer for

Work in Progress German Economic Review, Journal of Evolutionary Economics, Palgrave Research Kretschmer, D., Gereke, J., Winter, F. and Methods Series, Social Forces (3), Social Zhang, N. (in preparation). Ethnic Composi- Science Research, Social Science & Medicine, tion and Friendship Segregation: A comment Zeitschrift für Soziologie (2), Conference on Smith et al. 2016. “Social Norms and Institutions”, Journal of Economic Psychology, Social Psychology Breznau et al. (in preparation a). Midnight in Quarterly (2), Experimental Economics, Social the Garden of Forking Paths: The Realities of Indicators Research, European Sociological Researcher Variability. Review

277 D. Research Portraits

278 Nan Zhang

Overview an asymmetric pattern of social sanctioning, whereby almost 20% of natives I joined the MPI as a Senior Research sanction minority norm-breakers, where- Fellow in the Research Group “Mech- as only 4% of minorities sanction na- anisms of Normative Change” on 1 tives. These patterns speak against the September 2016. From 2014-2016, I commonly-cited proposition that norm was a Max Weber Fellow at the Europe- enforcement is ethnically-bounded, but an University Institute in Florence, Italy. are instead suggestive of the influence I obtained my PhD in Political Science of status hierarchies in interethnic from Stanford University (2014), and encounters. I also hold a JD from Stanford Law Other projects in this line of research School (2011). My research lies primari- are currently in the writing and planning ly at the intersection of Political Science phases. Zhang, Gereke, and Baldassarri and Sociology, and my work since 2017 (unpublished work) use an unobtrusive has focused on three main topics: (i) measure of physical distancing to cap- Contact immigration, ethnic diversity, and social ture aversion to intergroup contact. Our cohesion; (ii) nationalism, political de- contact experiment randomly exposes [email protected] velopment, and state-society interaction; commuters in the Milan subway to the and (iii) civic responses to corruption. presence of immigrants and measures https://www.coll.mpg.de/nan-zhang their aversive reactions. Results from Immigration, Ethnic Diversity, and two waves of data collection show Social Cohesion greater aversion to contact with African confederates (compared against a Recent waves of immigration have native “baseline”), but no discrimination changed the demographic face of against Asian confederates. Western societies and generated heated Gereke, Schaeffer, and Zhang (unpub- debates about the consequences of lished work) studies how the ethnicized ethnic diversity for social cohesion. portrayal of immigrants as welfare My research uses experimental meth- recipients affects public support for wel- ods (particularly field experiments) to fare policies in Denmark. We measure investigate the extent to which ethnic welfare support using a field experi- boundaries shape prosocial behavior in ment soliciting signatures on political real-world encounters. petitions in support of various welfare Zhang et al. (2019) study other-regard- policies. Data collection was originally ing preferences via a helping experiment envisioned for summer 2020, but has in Zurich’s Central Train Station. The unfortunately been postponed due to intervention consists of approaching the current Corona situation. commuters with a small request for Finally, Álvarez, Winter, and Zhang assistance (borrowing a mobile phone). (unpublished work) are conducting a We employed professional actors who natural survey experiment embedded could vary the dialect in which this within a long-term public opinion study request was phrased and thereby signal of the effects of the 2020 U.S. Presi- either a native or immigrant identity. dential election on anti-racist norms. The results demonstrate a discernible pattern of anti-foreigner bias, especially Nationalism, Political Development, and against members of stereotypically State-Society Interaction “low-status” immigrant groups. In another field experiment, Winter and A longstanding tradition in political Zhang (2018) examine reactions to science has studied the co-development norm violations committed by con- of political institutions with national federates with and without migration identities and national cultures. Much backgrounds. The experiment uncovers of this research has traditionally relied

279 D. Research Portraits

upon qualitative sources and methods. I Civic Responses to Corruption Future Research Agenda contribute original quantitative evidence to this literature and study the process- Over the past four years, I have also I have been approved by the German es by which states gained the capacity worked on several projects relating to Research Foundation (DFG) to head a increasingly to shape the societies they corruption, which was the theme of new Emmy Noether Research Group: purport to rule. my PhD research. In particular, an- “Making Diversity Work: New Behavioral Lee and Zhang (2017) argue that “leg- ti-corruption research has highlighted Indicators of Social Cohesion in Multi- ibility” – i.e., the breadth and depth of the potential for grassroots action to ethnic Communities.” The six-year proj- the state’s knowledge about its citi- improve governance outcomes, but the ect will combine field experiments with zens and their activities – is crucial to conditions under which citizens are administrative data to analyze how trust effective, centralized governance. The willing to stand up against corruption and cooperation can be sustained in paper contributes an original measure remain under-studied. Are individuals ethnically diverse settings. This research of legibility based on the errors in age- from some societies socialized into a program innovates over existing studies, counts obtained from national popu- “culture of corruption” that makes them which have primarily privileged compar- lation censuses and demonstrates an more accepting of malfeasance, or is isons between ethnically homogenous empirical relationship between legibility the failure to denounce wrongdoing sim- vs. heterogeneous areas, while over- and centralized tax collection. A related ply a response to low-quality enforce- looking important differences between paper (Zhang and Lee, 2020) examines ment institutions? Zhang (2018) reports highly diverse contexts. By their design, the role of linguistic harmonization in results from a laboratory experiment to prevailing approaches cannot explain expanding state power. Drawing upon examine how the propensity to report why some diverse areas exhibit higher detailed historical data from 19th-century corruption differs between Northern levels of trust and cooperation than France, we demonstrate that literacy and Southern Italians, two populations others. To gain analytical leverage over in the language of state administration experiencing different levels of corrup- this question, the Making Diversity Work facilitates compliance with family-law tion in everyday life. For each group, I project will instead examine variation regulations. experimentally manipulate the quality across multiethnic neighborhoods in Lee and Zhang (unpublished work) study of enforcement institutions. When given order to identify the factors contributing the relationship between American high-quality institutions, all participants to positive diversity outcomes. Using state-building and the development of are more willing to report corruption. innovative field-experimental methods, a national identity. Efforts to examine Moreover, Southerners and Northerners I will develop a sophisticated set of historical identity construction have behave similarly when placed within the behavioral indicators to map variation in been hampered by the lack of quantita- same institutional environments. These prosocial behavior across diverse urban tive measures of nationalist sentiment results suggest that high-corruption areas. These new data will be used in an era before public-opinion data. Our societies are not “culturally” predis- to (i) test systematically new theories project overcomes this limitation via the posed to tolerate malfeasance. Rather, about how different characteristics of use of text-as-data methods. Specifi- improving the capacity of enforcement diverse neighborhoods contribute to cally, historians argue that Americans institutions may significantly strengthen local cooperation; (ii) disentangle the in the 19th century gradually stopped accountability norms. individual-level mechanisms underlying thinking of the United States as a Poertner and Zhang (unpublished work) social cohesion in multiethnic settings; federative entity comprised of multiple, study civic reactions to corruption by and (iii) develop a richer understanding equal sovereign states, and instead leveraging natural experiments from of social relations that takes both the thought of it as a single national entity. Argentina and Costa Rica, involving the natives’ and the minorities’ experiences This transformation is evident in the unprecedented sentencing of two for- into account. Overall, it is hoped that well-documented grammatical change mer Presidents on corruption charges. results from this research will open in which the phrase “United States‘‘ Exploiting the coincidence in timing be- up new scientific perspectives on shifted from a plural noun to a singular tween these cases and fieldwork on na- cooperation in diverse communities noun. We examine this grammatical tionally representative surveys, we show and generate critical policy knowledge shift using verbatim transcriptions of that high-profile efforts to punish corrupt about how to “make diversity work” in speeches given in the U.S. Congress. By actors paradoxically eroded trust in insti- an era of rapid demographic change. linking natural-language speech data to tutions and produced “resigned citizens” speaker biographies, we can begin to who expressed a lower willingness to paint a picture of how economic, social, vote or join in collective demonstrations. and political developments came together to shape American national identity.

280 Publications (since 2017) Research in the Humanities and Social Sci- Implicit Bias Against Immigrants Is Unaffect- ences Grant, Princeton University ed by Their Socioeconomic Status Winner of the 2020 European Sociological Re- Analytical Sociology Workshop, Venice Inter- Articles in Peer-Reviewed Journals view Best Article Prize for “Prosocial Behavior national University Zhang, N. and Lee, M. (2020). Literacy and in Interethnic Encounters” November 2018 State-Society Interactions in 19th Century France. American Journal of Political Science, 2019 64(4), 1001–1016. Lectures and Presentations Implicit Bias Against Immigrants Is Unaffect- Zhang, N., Aidenberger, A., Rauhut, H. and (since 2017) ed by Their Socioeconomic Status Winter, F. (2019). Prosocial Behavior in Think Causally! Experiments in the Social Interethnic Encounters: Evidence from a 2017 Sciences, European University Institute Field Experiment with High- and Low-Status February 2019 Immigrants. European Sociological Review, Social Norm Enforcement in Ethnically 35(4), 582–597. Diverse Communities Implicit Bias Against Immigrants Is Unaffect- Winter, F. and Zhang, N. (2018). Social Norm IMEBESS, Barcelona ed by Their Socioeconomic Status Enforcement in Ethnically Diverse Communi- May 2017 IMEBESS, Utrecht University ties. Proceedings of the National Academy of May 2019 Sciences, 115(11), 2722-2727. Legibility and the Informational Foundations of State Capacity Does Immigration Undermine Public Support Zhang, N. (2018). Institutions, Norms, and Governance in Areas of Limited Statehood, for Welfare? Evidence from a Conjoint Accountability: A Corruption Experiment with FU Berlin Experiment Northern and Southern Italians. Journal of June 2017 INTERACT Conference, Bocconi University Experimental Political Science, 5(1), 11–25. June 2019 Lee, M. and Zhang, N. (2017). Legibility and Social Norm Enforcement in Ethnically Tracking the Trump Effect: A Long-Term the Informational Foundations of State Ca- Diverse Communities Study of How Political Campaigns Change pacity. Journal of Politics 79(1), 118–132. APSA, San Francisco August 2017 the Unsayable Digital Societies Conference, University of Konstanz Working Papers Social Norm Enforcement in Ethnically Diverse Communities September 2019 Poertner, M. and Zhang, N. (under review). BEELab, University of Florence The Paradoxical Effects of Combating Cor- November 2017 Tracking the Trump Effect: A Long-Term ruption on Political Engagement: Evidence Study of How Political Campaigns Change from Two Natural Experiments. 2018 the Unsayable Analytical Sociology Workshop, Venice Inter- Zhang, N., Gereke, J. and Baldassarri, D. national University Racial Avoidance in Everyday Encounters: A Literacy and State-Society Interactions in th November 2019 Field Experiment in the Milan Metro. 19 -Century France Hohenheim University May 2018 2020 Work in Progress Literacy and State-Society Interactions in All engagements cancelled. 19th-Century France Álvarez Benjumea, A., Hillenbrand, A., Winter, Heidelberg University F. and Zhang, N. Risk Perception and Norma- May 2018 Teaching tive Change During the COVID-19 Outbreak. 2019 Álvarez Benjumea, A., Winter, F. and Zhang, Stereotypes and Social Norm Enforcement in Interethnic Encounters: Survey Evidence and Experimental Methods in the Social Sciences N. Tracking the Trump Effect: A Long Term GIGA, Hamburg Study of How Political Campaigns Change Behavior in the Field the Unsayable. IMEBESS, European University Institute May 2018 Gereke, J., Schaeffer, M. and Zhang, N. Professional Activities Immigration, Ethnic Diversity, and the Future Prosocial Behavior in Interethnic Encounters: of the Scandinavian Welfare State: A Field Evidence from a Field Experiment with High- Referee for Experiment in Greater Copenhagen. and Low-Status Immigrants Mittelbau Seminar, MZES PNAS, American Political Science Review, Lee, M. and Zhang, N. From Pluribus to Unum: June 2018 Statebuilding in 19th Century America. American Journal of Political Science, Journal of Politics, Quarterly Journal of Political Sci- Stereotypes and Social Norm Enforcement in ence, World Politics, European Sociological Re- Interethnic Encounters: Survey Evidence and view, Journal of Ethnic and Migration Studies, Prizes and Awards Behavior in the Field Journal of the Economic Studies Association, The Migration Conference, Lisbon Diligentia Foundation 2020 June 2018

German Research Foundation (DFG) Emmy Panel on Behavioral and Cultural Approaches Noether Program to Tax Compliance ECPR, Hamburg August 2018

281 D. Research Portraits

I have also taken part in two large-scale replication initiatives:

[1] The Crowdsourced Replication Initiative: Investigating Immigration and Social Policy Preferences, organized by N. Breznau, E. M. Rinke, and A. Wuttke

[2] Systematizing Confidence in Open Re- search and Evidence (SCORE), organized by the Center for Open Science

282 Claudia Zoller

I am currently employed as a postdoc- Working Papers toral researcher and lecturer at the Bortolotti, S., Soraperra, I., Sutter, M. and Center for Social and Health Innovation Zoller, C. (2017). Too Lucky to Be True: Fair- at the Management Center Innsbruck. ness Views under the Shadow of Cheating. CESifo Working Paper No. 6563. I graduated from the University of Cologne’s PhD program in October 2018 and was part of Prof. Sutter’s research group until September 2018. Lectures and Presentations (since 2017) During my time at the institute, from October 2017 to September 2018, 2018 I mainly worked on my PhD thesis, Busy little bees – An experiment on endoge- covering the following topics: nous time scheduling and diligence in early childhood (i) the development of social preferenc- ESA World Conference, Berlin Contact es and behavioral patterns through- July 2018 out childhood; [email protected] Busy little bees – An experiment on endoge- (ii) fairness and inequity preferences. nous time scheduling and diligence in early childhood https://www.coll.mpg.de/claudia-zoller In addition, I am still currently involved MPI Inaugural Conference, Bonn May 2018 in a joint project with Matthias Sutter, Angelo Romano, and Zvonimir Bašić, in Busy little bees – An experiment on endoge- a large-scale lab-in the-field experiment nous time scheduling and diligence in early on the development of cooperation in childhood MPI Workshop Berlin-Bonn-Leipzig, Bonn young children. We let 964 children, March 2018 aged three to six, play a repeated prisoner’s dilemma game. In a unified exper- Busy little bees – An experiment on endoge- imental framework, we examine which nous time scheduling and diligence in early childhood of three fundamental pillars of human Innsbruck Winter School, Kühtai cooperation – direct and indirect reci- February 2018 procity as well as third-party punishment – emerges earliest and is most effective in increasing cooperation in a social dilemma. We find that third-party punishment exhibits a striking positive effect on cooperation. Children engage in reciprocating others; however, direct and indirect reciprocity do not increase overall cooperation levels. We discuss theory and policy implications of our findings.

Publications (since 2017)

Articles in Peer-Reviewed Journals Sutter, M., Zoller, C. and Glätzle-Rützler, D. (2019). Economic Behavior of Children and Adolescents – A First Survey of Experimen- tal Economics Results. European Economic Review, 111, 98–121.

283 D. Research Portraits

284 Frederike Zufall

Following the completion of my doctoral between regulation to protect individ- studies at Humboldt University of Berlin uals and the freedom of expression. in 2015, I worked for three years as an The resulting research paper (Zufall, assistant professor at Waseda Univer- Horsmann, Zesch; 2019) has been sity, Tokyo. After one more year at the accepted by NAACL-HLT 2019, one of Research Group on Law Science Tech- the top conferences in the area of NLP. nology & Society (LSTS), Free University Our follow-up project focuses on the of Brussels, I joined the Institute on criminal offense of “Incitement to Ha- 1 September 2020. tred” while outlining specific NLP tasks related to its operationalization. We During my time at Waseda University I started collaborating with the Cologne approached IT law and data regulation public prosecutor’s office (Cybercrime from a comparative perspective. At the Zentrum NRW), inter alia by accessing same time, the interdisciplinary envi- their investigation files. Our research ronment at the Waseda Institute for Ad- has yielded further fruit, as we are active Contact vanced Study gave me the opportunity contributors to the Federal Criminal Po- to build on my long-standing affinity with lice Office’s (BKA) research project KIS- [email protected] computer science: I initiated interdisci- TRA (“Einsatz von KI zur Früherkennung plinary research projects, with both com- von Straftaten”), advising and working https://www.coll.mpg.de/frederike-zufall puter scientists and mathematicians, on automatic detection systems for exploring how legal concepts could be criminal offenses (i.e., “hate speech”). carried over to technology. My aim at the MPI is to benefit from this applied Furthermore, I have initiated an in- work and to address theoretical precon- terdisciplinary research project with ditions for implementing Legal Tech in mathematicians from Waseda Univer- procedural law in my habilitation thesis. sity. We work on applied mathematics, namely on how legal dogmatics could be translated into mathematical models. Research Outline With this, our project aims to contribute further to the foundations of Legal Tech: I have an ongoing research coopera- while most current approaches focus tion with computer scientists (Nat- on machine learning (including my NLP ural Language Processing) from the research, described above), explor- University of Duisburg-Essen (Germa- ing the extent to which mathematical ny). We pursue the implementation of models – as a more abstract and less technical solutions that allow for the data-driven approach – could stand in adaptation of legal requirements by NLP for legal concepts, this aspect has rarely techniques. For our first research paper, been investigated. The advantages lie we investigated how the assessment in a higher degree of explainability and of criminal offenses (here: defamation) transparency, but come at the price of could be operationalized with regard to higher abstraction and simplification. social-media content. We suggested a Our paper (currently under review) tries way to create large datasets, usable by to demonstrate this based on the con- neural networks for automated classifi- cept of balancing competing interests, cation – without depending on existing namely the conflict between access to court decisions. Therefore, we annotat- information and the right to the protec- ed training data according to a legis- tion of personal data and to privacy, lation-dependent annotation schema. as applied by the European Court of From a legal point of view, one objective Justice’s Google Spain decision.1 was to address the crucial relationship

1 ECJ, Case C‑131/12, Judgment of the Court (Grand Chamber), 13 May 2014, ECLI:EU:C:2014:317.

285 D. Research Portraits

Building on these interdisciplinary and Zufall, F. (2019). Challenging the EU’s ‘right applied projects, my habilitation thesis to be forgotten’? Society’s ‘right to know’ in Japan, European Data Protection Law Review will address theoretical preconditions (EDPL), 1, 17-25. for implementing Legal Tech in procedural law. If machine-learning approach- Submissions es feed on training data, the sources Zufall, F., Zhang, H., Kloppenborg, K., Zesch, (judicial decisions, laypersons, expert T. Operationalizing the legal concept of ‘In- annotation, etc.), composition, and citement to Hatred’ as an NLP task. validation of these datasets are crucial Zufall, F., Kimura, R., Peng, L., A simple to the legal effect we might be willing to mathematical model for the legal concept of assign to these systems. However, ex- balancing of interests (confidential). plainability, transparency, and accuracy of automated decision-making systems Book Chapters do not merely depend on the data set: Zufall, F., Zingg, R. (forthcoming). Data feature engineering, software design, Portability in a Data-Driven World, in: Peng/ pre-training, and steps of an NLP pipe- Lin/Streinz (Eds.), Reconfiguring International line are all part of the technical process. Economic Law in an AI Era, Cambridge Univer- sity Press. How does this relate to our understanding of legal decision-making and Zufall, F. (2017/2018/2019). Artikel 50 DSGVO [Art. 50 General Data Protection Reg- legal procedure? The need to address ulation (GDPR)], in: Eßer/Kramer/v. Lewinski algorithmic regulation not just on a legal (Eds.), DSGVO/BDSG, 5th ed. 2017, 6th ed. level, but also on the level of technical 2018, 7th ed. 2020. implementation – and, ultimately, how these are intertwined – is a precondi- Discussion Paper tion for future Legal Tech solutions. Zufall, F. (2017). Digitalisation as a catalyst Connected research questions would, for legal harmonisation: The EU digital single for instance, concern the possibility of market, WIAS Research Bulletin No. 10, 103- legal redress, as prescribed by the rule 110. of law, but also the role of participation in administrative procedure. How do we define and understand the substance of legal procedure, due process, and, ultimately, the application of law? We might have to rethink existing legal mechanisms and to adapt them, while still maintaining the fundamental concepts on which our legal systems were built.

Publications (since 2017)

Articles in Peer-Reviewed Journals Zufall, F. (2019). Shifting Role of the Place: From locus delicti to online ubiquity in EU, Japanese and U.S. conflict of tort laws,The Rabel Journal of Comparative and Internation- al Private Law (RabelsZ) 2019/4, 760-796. Zufall, F., Horsmann, T., Zesch, T. (2019). From legal to technical concept: Towards an automated classification of German political Twitter postings as criminal offenses, Proceedings of the Annual Conference of the North American Chapter of the Association for Computational Linguistics: Human Language Technologies (NAACL-HLT), Minneapolis, USA, 1 (Long Paper), 1337-1347.

286 E. Conferences & Workshops

287 E. Conferences & Workshops

E. Conferences & Workshops organized by the Max Planck Institute for Research on Collective Goods

2018 12th IMPRS Uncertainty Thesis Workshop Jointly organized with the University of Jena, Germany Workshop with the Cologne School of Journalism Leucorea, Wittenberg, Germany Max Planck Institute for Research on Collective Goods, Bonn 03-06 March 2019 23 January 2018 Workshop on Behavioral and Experimental Economics 11th IMPRS Uncertainty Thesis Workshop Max Planck Institute for Research on Collective Goods Jointly organized with the University of Jena, Germany 15 May 2019 Schloss Ringberg, Germany 05-09 March 2018 Experimental Finance Workshop Max Planck Institute for Research on Collective Goods Workshop with the Research Groups of Professors Ralph Hertwig and 4 June 2019 Richard McElreath Max Planck Institute for Research on Collective Goods, Bonn Causality in the Law and in the Social Sciences 14 March 2018 38th Seminar on the New Institutional Economics Jointly organized with Urs Schweizer, University of Bonn, Germany ECONtribute Retreat Porto, Portugal Jointly organized with the University of Bonn and the University of 05-08 June 2019 Cologne Max Planck Institute for Research on Collective Goods, Bonn 18 April 2018 2020 Inaugural Conference of the Experimental Economics Group Bonn, Germany Workshop with the Cologne School of Journalism 28-29 May 2018 Max Planck Institute for Research on Collective Goods, Bonn 16 January 2020 Without Money? 37th Seminar on the New Institutional Economics All further conferences and workshops were cancelled due to the Jointly organized with Urs Schweizer, University of Bonn, Germany COVID-19 pandemic. Florence, Italy 06-09 June 2018

Experimental Finance Workshop Max Planck Institute for Research on Collective Goods, Bonn 19 June 2018

IMPRS Topics Workshop Jointly organized with University of Jena, Germany Rome, Italy 24-28 September 2018

Workshop with CREED Amsterdam Max Planck Institute for Research on Collective Goods, Bonn 28 November 2018

2019

Workshop with the Cologne School of Journalism Max Planck Institute for Research on Collective Goods, Bonn 16 January 2019

Workshop with the Research Groups of Professors Loukas Balafou- tas and Kai Konrad Innsbruck, Austria 8 February 2019

288 F. Research Seminars

289 F. Research Seminars

F.I External Speakers in our Research Seminars

2017 Ingela Algers Toulouse School of Economics, France “How Many Wives Do Men Want? On the Evolution of Polygyny Rates” Fedor Levin 6 February 2017 MPI for Demographic Research, Rostock, Germany “The Influence of Episodic Memory Decline on Food Choice” Francesco Cerigioni 9 January 2017 Universitat Pompeu Fabra and Barcelona Graduate School of Econom- ics, Barcelona, Spain Molly Crockett “Stochastic Choice and Familiarity: Inertia and the Mere Exposure University of Oxford, UK Effect” “The Price of Principles” 8 February 2017 (Economics Seminar) 9 January 2017 Nikita Zakharov Alia Gizatulina University of Freiburg, Institute for Economic Research, Freiburg, University of St. Gallen, Switzerland Germany “Designer Uncertainty and Bet-on-the-Liar Mechanism” “Does Independent Media Matter in Non-Democratic Elections? 11 January 2017 (Economics Seminar) Experimental Evidence from Russia” (with Ruben Enikolopov, Michael Rochlitz, and Koen Schoors) Marc Scheufen 15 February 2017 (Economics Seminar) University of Bochum, Germany “Does Online Access Promote Research in Developing Countries?” Viola Ackfeld 16 January 2017 Cologne Graduate School, Germany “On the Evolution of Trust Behavior when Sharing Strategic vs. Matteo Ploner Non-strategic Private Information” University of Trento, Italy 20 February 2017 “Taking Over Control: An Experimental Analysis of Delegation Avoid- ance in Risky Choices” Christoph Möllers 23 January 2017 University of Berlin, Germany “From Dogma to Data? Legal Reasoning as an Object of Empirical Rafael Aigner Research” German Institute for Economic Research (DIW), Berlin, Germany 20 February 2017 “The Fehmarn Belt Duopoly – Can the Ferry Compete with a Tunnel?” 25 January 2017 (Economics Seminar) Alex Smolin University of Bonn, Germany Andrej Angelovski “Evaluation Theory of Wage Growth” LUISS Guido Carli, Rome, Italy 21 February 2017 (Economics Seminar) “Can Competition Resolve the Free-rider Problem in the Voluntary Provision of Impure Public Goods? Experimental Evidence” Lilia Zhurakhovska 30 January 2017 University of Duisburg-Essen, Germany “The Long-run Effects of the Universal Basic Income: Experimental Arianna Galliera Evidence” LUISS Guido Carli, Rome, Italy 13 March 2017 “Behavioral Patterns in Conditional Generosity” 30 January 2017 Luigi Franzoni University of Bologna, Italy Francesca Marazzi “Applying Behavioural Economics to Policy-making: Some Experienc- LUISS Guido Carli, Rome, Italy es” “Do All ‘Bad’ Apples Taste the Same? Experimental Analysis of Hetero- 13 March 2017 geneity in Local Public-goods Provi-sion” 30 January 2017 Niels Petersen University of Münster, Germany Valentin Wagner “An Empirical Analysis of Constitutional Prohibitions of Discrimina- University of Düsseldorf, Germany tion” “Seeking Risk or Answering Smart? Framing in Elementary Schools” 20 March 2017 1 February 2017 (Economics Seminar)

290 F.I External Speakers in our Research Seminars

Benedikt Herrmann Willemien Kets European Commission, Brussels, Belgium Kellogg School of Management, Northwestern University, Evanston, “Applying Behavioural Economics to Policy-making: Some USA Experiences” “Strategic Uncertainty and the Costs and Benefits of Diversity” 20 March 2017 29 May 2017

Milena Nikolova Ctirad Slavik IZA– Institute for the Study of Labor, Bonn, Germany Center for Economic Research and Graduate Education – Economics “Your Spouse is Fired! How Much Do You Care?” Institute 22 March 2017 (Economics Seminar) Prague, Czech Republic “Wage Risk and the Skill Premium” Ewald Engelen 30 May 2017 (Economics Seminar) University of Amsterdam, Netherlands “Trade Narratives at the Service of Restoration: The Case of Europe’s Wilhelm Hofman Capital Markets Union” University of Cologne, Germany 3 April 2017 “Antecedents and Consequences of the Desire to Punish Perpetrators in Everyday Life” Davide Cantoni 19 June 2017 (joint with David Y. Yang, Noam Yuchtman, Y. Jane Zhang) LMU Munich, Germany Vikrant Vig “Are Protests Games of Strategic Complements or Substitutes? London Business School, United Kingdom Experimental “The Privatization of Bankruptcy: Evidence from Financial Distress in Evidence from Hong Kong’s Democracy Movement” the Shipping Industry” 10 April 2017 26 June 2017

Martin Obradovits Florian Engl University of Innsbruck, Austria University of Cologne, Germany “The Loss-Leading Puzzle” “A Theory of Causal Responsibility Attribution” 19 April 2017 (Economics Seminar) 10 July 2017

Emilio Calvano Ulrike Vollstädt University of Bologna, Italy University of Duisburg, Germany “Can We Trust the Algorithms that Recommend Products Online? “Quantitative Wirtschaftspolitik” A Theory of Biased Advice with No Pecuni-ary Incentives and Lab 17 July 2017 Evidence” 26 April 2017 (Economics Seminar) Sebastian Goerg Florida State University, USA Marie Lalanne “Norm Violations and their Spillovers: Evidence from the Lab and Goethe-Universität Frankfurt, SAFE Research Center, Germany Field” “Do Social Ties Lead to Job Referrals: Evidence from US Board Ap- 17 July 2017 pointments” 3 May 2017 (Economics Seminar) Bertil Tungodden Norwegian School of Economics, Bergen, Norway Alexander Vostroknutov “Beliefs about Behavioral Responses to Taxation” University of Trento, Italy 24 October 2017 “Social Norms and Preferences for Redistribution” 8 May 2017 Stefan Bechtold (joint with Christoph Engel) Martin Guzi ETH Zurich, Switzerland Masaryk University, Brno, Czech Republic “The Valuation and Incentive Effects of Moral Rights: Two Field Exper- “Unstable Political Regimes and Wars as Drivers of International iments” Migration” 30 October 2017 11 May 2017 (Economics Seminar) Sarah Auster Xandra Kramer (joint with Nicola Pavoni) (joint with Christoph Engel) Bocconi University, Milan, Italy University of Rotterdam, Netherlands “Optimal Delegation, Unawareness, and Financial Intermediation” “Perceived Access to Justice” 20 November 2017 15 May 2017 Jakub Harasta Mila Versteeg Institute of Law and Technology, Masaryk University, Czech Republic University of Virginia, School of Law, USA “Natural Language Processing and Citations Analysis in Law” “Rights without Resources: The Impact of Constitutional Social Rights 27 November 2017 on Social Spending” 15 May 2017 Lawrence Solan Brooklyn School of Law, New York, USA “Using Big Data in Legal Interpretation” 27 November 2017

291 F. Research Seminars

Armin Falk Ludovica Orlandi Institute on Behavior & Inequality (briq), Bonn, Germany University of Essex, UK “Moral Behavior and Happiness” “The Effect of Being an Only Child on Preferences Structure and Stra- 04 December 2017 tegic Behavior” 21 March 2018 Rupak Majumdar MPI for Software Systems, Saarbrücken, Germany Felix Kölle und Lukas Wenner “Reactive Synthesis for Cyber-Physical Systems” University of Cologne, Germany 11 December 2017 “Present-Biased Generosity: Dynamic Inconsistency and Social Prefer- ences in Real-Effort Allocations” Ralph Beyer 21 March 2018 University of Adelaide, Australia “The Double Dividend of Relative Auditing: Theory and Experiments on Roberto Weber Corporate Tax Enforcement” University of Zurich, Switzerland 19 December 2017 “Revealed Privacy Preferences: Are Privacy Choices Rational?” 04 April 2018

2018 Alessandra Cassar (joint with Y. Jane Zhang) University of San Francisco, USA Axel Ockenfels “The Competitive Woman” University of Cologne, Germany 17 April 2018 “Current Challenges in Market Design” 15 January 2018 Johanna Mollerstrom Humboldt University Berlin / DIW, Germany Richard McElreath “A Meritocratic Origin of Egalitarian Behavior” MPI for Evolutionary Anthropology, Leipzig, Germany 25 April 2018 “10 Years of Experimental Work on Cultural Microevolution” 22 January 2018 Georg Weizsäcker Humboldt University Berlin, Germany Markus Dertwinkel-Kalt “Learning from Realized versus Unrealized Prices” University of Cologne, Germany 25 April 2018 “Local Thinking and Skewness Preferences” 23 January 2018 James Konow University of Kiel, Germany Oliver Braganza “The Just World at Work: Theory and a Natural Field Experiment” University of Bonn, Germany 15 May 2018 “Proxy Economics: A Transdisciplinary Theory of Competition with Imperfect Information” Daniel Schunk 24 January 2018 University of Mainz, Germany “The Effects of Self-Regulation Training in Primary Schools: Evidence Krishna Gummadi from a Randomized Controlled Trial” MPI for Software Systems, Saarbrücken, Germany 16 May 2018 “Fairness in Machine Decision-Making” 29 January 2018 Iris Schneider University of Cologne, Germany Matthias Stefan “The Path of Ambivalence: Using Mouse Trajectories to Understand University of Innsbruck, Austria Evaluative Conflict” “The Consistency of Different Risk Elicitation Methods” 22 May 2018 06 February 2018 Bart Goldsteyn Stefan Magen University of Maastricht, Netherlands Ruhr University, Bochum, Germany “The Impact of Peer Personality on Academic Achievement” “On Experimental Legal Philosophy” 05 June 2018 19 February 2018 Ludger Wößmann Arthur Dyevre University of Munich / ifo Center for the Economics of Education, University of Louvain Law School, Leuven, Belgium Germany “The Geography of Legal Integration in Europe: Mapping and Predict- “Does Ignorance of Economic Returns and Costs Explain the Educa- ing Subnational Disparities in Referral Activity” tional Aspiration Gap? Evidence from Representative Survey Experi- 12 March 2018 ments” 06 June 2018 Andreas Engert University of Mannheim, Germany Benjamin Enke “The Inefficiency of Efficient Breach: Contract Renegotiation under Harvard University, Cambridge, USA Asymmetric Information” “Moral Values and Voting” 19 March 2018 04 July 2018

292 F.I External Speakers in our Research Seminars

Dorothea Kübler Daniel Balliet WZB (Berlin Social Science Center), Berlin, Germany Vrije Universiteit Amsterdam, Netherlands “How Lotteries in School Choice Help Leveling the Playing Field” “Advancing Evolutionary and Cultural Perspectives on Interdepen- 04 July 2018 dence and Cooperation” 19 November 2018 Maria Bigoni University of Bologna, Italy Stefan Bechtold “Money is More than Memory” ETH Zurich, Switzerland 20 July 2018 “Moral Rights and Incentives: Two Field Experiments” 19 November 2018 Imran Rasul University College London, United Kingdom Jordi Brandts “Safe Spaces for Women: Evidence from a Field Experiment in Sierra Barcelona Graduate School of Economics, Spain Leone During the Ebola Epidemic” “Dispelling Misconceived Beliefs: The Case of Rent Control” 10 October 2018 21 November 2018

Jan Hausfeld Jürgen Jost University of Konstanz, Germany Max Planck Institute for Mathematics in the Sciences, Leipzig, “Motives in Economic Interactions: An (interactive) Eye-Tracking Germany Study” “Methods of Complexity Reduction and Their Effects in Social, Eco- 10 October 2018 nomic, and Computational Environments” 26 November 2018 Simon Gächter University of Nottingham, United Kingdom Christopher Harms “The Rule of Law and Voluntary Cooperation: Experimental Evidence University of Bonn, Germany from 43 Societies” “Testing Null Effects – Why? How?” 17 October 2018 26 November 2018

Shaul Shalvi Julia Becker University of Amsterdam, Netherlands University of Osnabrück, Germany “Ethical Free-Riding: When Honest People Find Dishonest Partners” “Psychological Effects of Neoliberalism” 22 October 2018 04 December 2018

Robert Böhm Tilko Swalve RWTH Aachen University, Germany University of Mannheim, Germany “Parochial Altruism: Measurement Issues” “How Familiarity Improves Judicial Deliberation: Evidence from the 24 October 2018 German” 12 December 2018 Felix Mauersberger University of Bonn, Germany Michel Maréchal “Thompson Sampling: Endogenously Random Behavior in Games and University of Zurich, Switzerland Markets” “Civic Honesty Around the Globe” 29 October 2018 12 December 2018

Simeon Schudy Hannah Schildberg-Hörisch Ludwig Maximilian University of Munich, Germany DICE – University of Düsseldorf, Germany “A Field Experiment on Leadership Functions and Team Performance “Who Should Benefit from Affirmative Action? Ability, Effort, and -Dis in Non-Routine Analytical Team Tasks” crimination as Justifications for Quota Rules” 31 October 2018 12 December 2018

Marco Fabbri Holger Spamann University of Amsterdam, Netherlands Harvard Law School, USA “Market Integration and the Effects of Institutions on Prosocial Behav- “The ICTY Experiment: A Triple-Use Study on Legal Reasoning” ior” 17 December 2018 05 November 2018

Gerhard Riener 2019 DICE – University of Düsseldorf, Germany “The Intrinsic Value of Decision-Making in the Household: Evidence from a Charitable Giving Experiment in Egypt” Alexander Stremitzer 07 November 2018 ETH Zurich, Switzerland “Aspirational Goals, Overpromising, and Negative Spillovers” Agne Kajackaite 14 January 2019 WZB Berlin, Germany “Poverty Negates the Impact of Social Norms on Cheating” 14 November 2018

293 F. Research Seminars

Achim Wambach Sandro Ambühl University of Mannheim, Germany University of Toronto, Canada “Exploiting Uncertainty about the Number of Competitors in Procure- “Evaluating Financial Competence & Peer Advice on Financial Deci- ment Auctions” sions: A Case of the Blind Leading the Blind?” 16 January 2019 27 March 2019

Markus Kneer Joshua Dean University of Zurich, Switzerland Institute on Behavior & Inequality (briq), Bonn, Germany “Guilty Minds and Biased Minds” “Noise, Cognitive Function, and Worker Productivity” 21 January 2019 02 April 2019

Yuval Feldman Paul Smeets Bar-Ilan-University, Israel Maastricht University, Netherlands “Big Data and the Situational Regulation of Ordinary Unethicality” “Get Real! Individuals Prefer More Sustainable Investments” 22 January 2019 02 April 2019

Johannes Abeler Teodora Boneva University of Oxford, United Kingdom University of Oxford, United Kingdon “Determinants and Malleability of Truth-Telling Preferences” “Socioeconomic Gaps in University Enrollment: The Role of Perceived 23 January 2019 Pecuniary and Non-Pecuniary Returns” 03 April 2019 Fabian Kosse Ludwig Maximilian University of Munich, Germany Stefan Trautmann “Prosociality: Hard to Build, But Easy to Destroy” University of Heidelberg, Germany 31 January 2019 “Does Money Make you Mean?” 03 April 2019 John Hamman Florida State University, USA Michael Kirchler “Delegation and Team Selection” University of Innsbruck, Austria 04 February 2019 “Cognitive Skills and Economic Preferences in the Fund Industry” 10 April 2019 Bernhard Kittel University of Vienna, Austria Wolfgang Ketter “Power, Knowledge and Justice: Experiments on Distributive Decisions University of Cologne, Germany in Networks” “Should Humans be Users or Slaves of AI? An Experiment on the 11 February 2019 Future of Work” 05 May 2019 Eric Helland Claremont McKenna College, California, USA Michal Bauer “The Value of an Attorney: Evidence from Changes to the Collateral CERGE-EI, Charles University, Czech Republic Source Rule” “Scapegoating: Experimental Evidence” 18 February 2019 08 May 2019

Eyal Zamir Gerrit Hornung The Hebrew University of Jerusalem, Israel University of Kassel – Institut für Wirtschaftsrecht, Germany “Substituting Invalid Contract Terms: Theory and Empirics” “Regulating Hybrid Intelligence” 25 February 2019 13 May 2019

Roger Berger Anthony Niblett University of Leipzig, Germany University of Toronto, Canada “Determinants of Fair Behavior: An Evolutionary Perspective and Some 21 May 2019 Experimental Evidence from Guinea” 11 March 2019 Alexander Cappelen NHH Norwegian School of Economics, Norway Simon Columbus “How Do Adults Handle Distributive Conflicts Among Children? Experi- University of Amsterdam, Netherlands mental Evidence from China and Norway” “Situation Perception Mediates Framing Effects on Cooperative 22 May 2019 Behavior” 25 March 2019 Karen McAuliffe University of Birmingham Law School, UK Michael Goldhammer “Using Corpus Linguistics in Legal Research: A European Court of University of Bayreuth, Germany Justice Project” “Das Öffentliche Recht und die Kunst der Prognose“ 27 May 2019 25 March 2019

294 F.I External Speakers in our Research Seminars

Michael Livermore Henning Hermes University of Virginia Law School, USA NHH Bergen, Norway “Public Law Seminar: Using Genetic Data to Estimate Causal Influenc- “If You Could Read My Mind – An Experimental Beauty-Contest Game es in the Obesity-SES Relationship” with Children” 27 May 2019 26 September 2019

Matthew Smith Henry Schneider University of Bonn, Germany Queen’s University, Kingston, Canada “The Future of IT Security: Usability, Empiricism, and AI” “Promoting Best Practices in a Multitask Workplace: Experimental 27 May 2019 Evidence on Checklists” 26 September 2019 Adi Leibovitch The Hebrew University of Jerusalem, Israel Rachel Kranton “Bargaining in the Shadow of the Judge” Duke University, Durham, NC, USA 03 June 2019 “Deconstructing Group Bias: Social Preferences and Groupy vs. Non- Groupy Behavior” Stefan Thurner 02 October 2019 Medical University of Vienna, Austria “What Can We Learn about the Homo Sapiens from Computer Jean-Louis van Gelder Games?” University of Twente, Netherlands 03 June 2019 “The Potential of Virtual Reality to Study Criminal and Unethical Behavior” Uwe Sunde 07 October 2019 LMU Munich, Germany “Patience, Accumulation, and Comparative Development” Thomas M.J. Möllers 05 June 2019 University of Augsburg, Germany “The Role of Social Sciences in the Application of Law” Iwan Barankay 14 October 2019 Wharton University of Pennsylvania, USA “Financial Incentives to Support Statin Adherence and Lipid Control Nina Grgić-Hlača (Habit Formation): A Randomized Clinical Trial” MPI for Software Systems, Saarbrücken, Germany 12 June 2019 “Human Decision-Making with Machine Advice: An Experiment on Bailing and Jailing” Vicente Valentim 28 October 2019 European University Institute Florence, Italy “Into the Parliament and Into the Mainstream: How Radical Right Alon Harel Parties Become Normalized” The Hebrew University of Jerusalem, Israel 19 June 2019 “The Hand-Formula Debate: A Behavioral Analysis” 11 November 2019 Ilja van Beest University of Tilburg, Netherlands Jacob Livingston Slosser “Three is More Than Two in More Ways than One” University of Copenhagen, Denmark 01 July 2019 “An Experimental Approach to the Effect of Framing on Judgment and Precedent Choice” Johannes Haushofer 11 November 2019 Princeton University, USA “Psychology and Behavioral Economics of Poverty” Anna Bindler 03 July 2019 Department of Economics, University of Gothenburg, Sweden “Scaring or Scarring? Labor-Market Effects of Criminal Victimization” Andreas Leibbrandt 13 November 2019 Monash University, Melbourne, Australia “Rank-Order Tournaments with Safeguards: Experimental Evidence on Ingvild Almas Workplace (De-)Motivation” Stockholm School of Economics, Sweden 10 July 2019 “The Role of Preferences, Beliefs, and Decision-Making for Child Devel- opment: New Measures for a Structural Approach” Alex Imas 13 November 2019 Carnegie Mellon University, Pittsburgh, USA “Ownership, Learning, and Beliefs” Sule Alan 11 July 2019 European University Institute, Florence, Italy “Mitigating the Social Exclusion of Refugee Children: An Intervention Michael Wiedmann on Perspective-Taking” Norton Rose Fulbright LLP, London, UK 20 November 2019 “Die EU-Whistleblower-Richtlinie” 17 July 2019 Tim Cason Purdue University, West Lafayette, USA “Correlated Beliefs: Predicting Outcomes in 2x2 Games” 27 November 2019

295 F. Research Seminars

Kerstin Noelle Vokinger Katja Langenbucher ETH Zurich, Switzerland House of Finance, Goethe University, Frankfurt, Germany “Re-Identification of Anonymized Court Decisions: An Experiment “Responsible A.I. Credit Scoring” Based on ‘Linkage’” 20 January 2020 02 December 2019 Daniela Sele Peter Krebs and Stefanie Jung ETH Zurich, Switzerland University of Siegen, Germany “Algorithmic Explanations in the Field” “Moral und Rechtsgefühl in unternehmerischen Vertragsverhandlun- 20 January 2020” gen“ 02 December 2019 Urs Fischbacher University of Konstanz, Germany Anna Pegels “Cooperation, Bribery, and the Rule of Law” German Development Institute, Bonn, Germany 22 January 2020 “Say When! Understanding Waste Separation through a Field Experi- ment in Argentina” Franz Reimer 04 December 2019 University of Gießen, Germany “Aufgaben und Herausforderungen einer Theorie des Umweltrechts” Peter Richerson 27 January 2019 University of California, Davis, USA “The Evolutionary Origins of Human Virtue and Vice” Martin Kocher 09 December 2019 Institut für höhere Studien, Vienna, Austria “Increase Children’s Interest in STEM: A Field Experiment in Austria” Daniel Chen 05 February 2020 Toulouse School of Economics, France “Stereotypes in High Stake Decisions: Evidence from U.S. Circuit Daniele Nosenzo Courts” University of Nottingham, UK 11 December 2019 “Law and Norms: Empirical Evidence” 05 February 2020 Camille Terrier University of Lausanne, Switzerland Klaus-Robert Müller “Fiscal and Education Spillovers from Charter School Expansion” TU Berlin, Germany 11 December 2019 “Toward Explainable AI” 17 February 2020

2020 Norbert Paulo University of Salzburg, Austria “Thought Experiments in Ethics and Law” Jens C. Dammann 02 March 2020 University of Texas, School of Law, Austin, USA “Fee-Shifting Bylaws and Shareholder Wealth. An Empirical Analysis” Erik Kimbrough and Alexander Vostroknutov 07 January 2020 Chapman University, Orange, CA, USA “A Theory of Injunctive Norms” Helga Fehr-Duda 23 March 2020 University of Zurich, Switzerland “Risk in Time: The Intertwined Nature of Risk-Taking and Time-Dis- Ulrike Hahn (online) counting” Birkbeck University of London, UK 08 January 2020 “The Problem of Testimony” 20 April 2020 Marie-Claire Villeval GATE Lyon, France Mona Garvert (online) “Teaching Norms in the Street” MPI for Human Cognitive and Brain Sciences, Leipzig, Germany 08 January 2020 “How the Brain Represents the World to Guide (Adaptive?) Decisions” 11 May 2020 Rima-Maria Rahal Tilburg University, Netherlands Oliver Kirchkamp (online) “Glowing with Joy or Stricken by Guilt? Assessing Affective Processes (joint with Wladislaw Mill) in Prosocial Behavior via Thermal Imaging.” University of Jena, Germany 13 January 2020 “Conditional Cooperation and the Effect of Punishment” 18 May 2020 John Dylan Haynes Berlin Center for Advanced Neuroimaging – Bernstein Center for Com- Elliott Ash (online) putational Neuroscience, Germany (joint with Sergio Galletta and Tommaso Giommoni) “What Does Brain Science Tell Us About Free Will?” ETH Zurich, Switzerland 13 January 2020 “A Machine-Learning Approach to Analyzing Corruption in Local Public Finances” 29 June 2020

296 F.I External Speakers in our Research Seminars

Erin Krupka (online) (joint with Steve Leider and Ming Jian) School of Information, University of Michigan “Renegotiation Behavior and Promise-Keeping Norms” 13 July 2020

297 F. Research Seminars

F.II Internal Speakers in our Research Seminars

2017 Claudia Cerrone (joint with Christoph Engel) “Kantian Motivations and Prosocial Behavior” André Schmelzer 24 April 2017 “Strategy-proofness of Stochastic Assignment Mechanisms” 9 January 2017 Svenja Hippel “Robust Mechanism Design: Testing Informational Robustness Christoph Engel against Beliefs” “Property Rule vs. Liability Rule” (joint with Oren Bar-Gill) 29 Mai 2017 16 January 2017 Christoph Engel Susann Fiedler “Empirical Methods for the Law” “The Cost of Worrying” 19 June 2017 16 January 2017 Adrian Hillenbrand Ioanna Grypari (joint with Svenja Hippel) “One Strike and You’re Out: The Effects of the Master Lever on “Strategic Rational Inattention: An Experiment on Product Search with Senators’ Positions” (joint with Olga Gorelkina) Hidden Costs” 17 January 2017 (Economics Seminar) 26 June 2017

Eugenio Verrina Amalia Alvarez Benjumea “When the State Doesn’t Play Dice: An Experimental Analysis of Oppor- “Spillover Effects in Hate Speech after Terrorist Attacks: A Natural tunistic Fiscal Policies and Tax Compliance” (joint with Matteo Ploner) Experiment” 23 January 2017 26 June 2017

Christoph Engel Yoan Hermstrüwer “Experimental Social Planners” (joint with Svenja Hippel) (joint with Claudia Cerrone and Pedro Robalo) 30 January 2017 “Debarment and Collusion in Procurement Auctions” 10 July 2017 André Schmelzer “Committing the English and the Continental Way” (joint with Phil Brookins Christoph Engel) “Testing Disclosure Policies in Contests” 13 February 2017 10 July 2017

Lars Freund and Franziska Tausch Claudia Cerrone “Compulsory Insurance and Nudging: How Contract Formation Affects (joint with Francesco Feri, Philip Neary) Fraudulent Behavior” “The Regret Game: Regret as a Coordination Device” 20 February 2017 17 July 2017

Paul Schempp Eugenio Verrina “Liquidity Creation, Capital Requirements, and Regulatory Arbitrage” “Stories We Tell: The Effect of Narratives on Moral Decision-Making” 29 March 2017 (Economics Seminar) 23 October 2017

Lars Freund Jens Frankenreiter (joint with Amalia Alvarez Benjumea and Katharina Luckner) “Informal Judicial Hierarchies: Case Assignment and Chamber Com- “Compulsory Insurance and Nudging: How Contract Formation Affects position at the European Court of Justice” Fraudulent Behavior” 23 October 2017 10 April 2017 Christoph Engel Jens Frankenreiter (joint with Oren Bar-Gill) “Forum Selling in Germany? Supply-side Effects in Forum Shopping in “Property Rule vs. Liability Rule: An Experiment” German Courts” 20 November 2017 10 April 2017 Leo Hoeft André Schmelzer “Abuse of Power and Social Norms” “Strategy-proofness of Stochastic Assignment Mechanisms” 27 November 2017 24 April 2017

298 F.II Internal Speakers in our Research Seminars

Jens Frankenreiter Adrian Hillenbrand “Writing Style and Legal Traditions – A Quantitative Investigation (joint with Fabian Winter and Phil Brookins) of the Stylistic Features of the Case Law of the European Court of “The Collateral Price of Inequality for Climate Change Action” Justice” 12 March 2018 27 November 2017 Pascal Langenbach Phil Brookins “Compensating the Victim or Paying a Fine: Does it Matter for the (with Claudia Cerrone and Dmitry Ryvkin) Level of Precaution?” “K-pay Auctions” 19 March 2018 04 December 2017 Svenja Hippel Lisa Lenz “Replicating a Seminal & Econ Paper” “Does Guilt Aversion in Groups Explain Insurance Fraud?” 19 March 2018 04 December 2017 Nan Zhang Amalia Álvarez “Stereotypes and Social Norm Enforcement in Interethnic Encounters” “Public Provision of Information and Normative Change” 19 March 2018 11 December 2017 Maj-Britt Sterba Phil Brookins “The Scope of Justice: Attitudes on Morally Relevant Group Character- “Disclosure Policies in Dynamic Stochastic Tournaments” istics in Redistribution Decisions” 11 December 2017 26 March 2018

Anna Baumert Amalia Álvarez “Moral courage, “Zivilcourage”, or “courage civique”. Psychological “Uncovering Hidden Opinions: The Effect of Social Acceptability on Processes of Bystander Intervention Against Norm Violations” Selective Disclosure” 11 December 2017 26 March 2018

Ali Seyhun Saral 2018 “Evolution of Conditional Cooperation in Prisoner’s Dilemmas” 4 April 2018

Leo Hoeft Alexander Schneeberger “Normative Behavior in the Lab” “Choosing the Right Social Norm: General vs. Group-Specific Norms” 15 January 2018 11 April 2018

Rima Rahal Lars Freund “Eyes on Morals: Investigating the Cognitive Processes Underlying “Reciprocity in Bilateral Trade?” Moral Decision-Making via Eye-Tracking” 11 April 2018 15 January 2018 Susann Fiedler Claudia Cerrone “Introducing InDiDa - the New DecisionLab Database of Individual “The Visible and Hidden Costs of Control Under Delegation” Difference Measures” 22 January 2018 16 April 2018

Fedor Levin Carina Hausladen “Positivity Effect and Decision-Making in Aging” “Honesty and Time Pressure” 22 January 2018 02 May 2018

Stefania Bortolotti Christoph Engel “Blind Rage: Inequality, Intentions, and Indiscriminate Punishment” “Clashing Fairness Norms as a Source of Tax Evasion” 22 January 2018 07 May 2018

Cornelius Schneider Florian Lindner “Revealed Preferences for Capital Taxation: Periodical Wealth Tax “Delegated Decision-Making and Social Competition in the Finance versus Estate Tax” Industry” 29 January 2018 15 May 2018

Hanjo Hamann Phil Brookins “Quantifying Discomfort: Representative Survey Research in Tenancy “The Risk Elicitation Puzzle” Litigation” 23 May 2018 29 January 2018 Sebastian Schneider Claudia Cerrone “Consistency in the Elicitation of Higher-Order Risk Preferences and “Debarment and Collusion in Procurement Auctions” Their Intensity Measures” 19 February 2018 23 May 2018

299 F. Research Seminars

Daniel Salicath Christoph Engel “Exploring a New Incentivization Procedure for the Elicitation of Risk” “Estimating Heterogeneous Reactions to Experimental Treatments” 23 May 2018 22 October 2018

Christoph Engel Nan Zhang (joint with Claudia Cerrone) “Should I Sit or Should I Stand? Gender, Race, and Everyday Discrimi- “Is the Veil of Ignorance a Resource? nation in the Milan Metro” 30 May 2018 29 October 2018

Cornelius Schneider Laurence O’Hara “Follow Up: Revealed Preferences for Capital Taxation” “Structured Balancing of Interests” 05 June 2018 05 November 2018

Ignacio Herrera-Anchustegui Maj-Britt Sterba “Zero Rating: A Competition and Legal Perspective” “Fairness in the Claims Problem with Risky Environments” 05 June 2018 05 November 2018

Isa Garbisch & Gabriela Küchler Ali Seyhun Saral “Determinants for Behavior in a Moral Courage Situation” “zBrac: A Translation Utility for zTree” 27 June 2018 26 November 2018

Daniel Toribio-Flórez Leonhard Hoeft “Moral Courage under Ambiguity: The Moderating Role of Different “Legal Compliance & Reputation” Justice Sensitivities” 26 November 2018 27 June 2018 Cornelius Schneider Lars Freund “The Desirability of Cheating in Optimal Income Taxation” “The Role of Reciprocity in Bilateral Trade Environments” 03 December 2018 02 July 2018 Phil Brookins Cornelius Schneider “Information Disclosure in Contests with Endogenous Entry: An Exper- “Enforced Tax Compliance in the Lab” iment” 02 July 2018 03 December 2018

Yoan Hermstrüwer Rima Rahal “Matching under Legal Constraints: The Value of Not Knowing the “Justice Is in the Eyes of the Beholder: Eye-Tracking Evidence on the Law” Obligation to Pay Damages” 09 July 2018 10 December 2018

Adrian Hillenbrand Alexander Schneeberger “The Differential Effect of Narratives” “The Effect of Moral Similarity on Group Formation and Norm Compli- 09 July 2018 ance” 17 December 2018 Maj-Britt Sterba “Large-Scale Cooperation and Support for Redistribution” Jens Frankenreiter 09 July 2018 “Forum Selling Abroad” 17 December 2018 Marcel Schubert “Understanding and Optimizing Group Situations: Leveraging Machine Learning in Behavioral Economics” 2019 09 July 2018

Sebastian Schneider & Shambhavi Priyam Pascal Langenbach “(Higher-Order) Risk Preferences of Adolescents and Their Conse- “Fine versus Liability: Experimental Evidence on Care Incentives” quences” 07 January 2019 20 July 2018 Lisa Lenz Matthias Heinz “The Effect of Intergroup Contact and Inclusive Policies on Prejudice “What Do Employee Referral Programs Do?” and Discrimination” 27 September 2018 07 January 2019

Pascal Langenbach Anna Baumert Group “The Price of Justice in the Individual Case” “Investigating Moral Courage in Game Settings. Discussion and 08 October 2018 Brainstorm” 14 January 2019 Sebastian Schneider “Self-Selection of Educational Gatekeepers into Field Experiments” 18 October 2018

300 F.II Internal Speakers in our Research Seminars

Eugenio Verrina Yoan Hermstrüwer “The Story of a Failed Replication and What to Do about It” “Machine-Based Decision Aids in Ultimatum Bargaining” 28 January 2019 06 May 2019

Maj-Britt Sterba Pascal Langenbach “The Eager and the Idle: Fairness Views on Risk-Taking Given Different “Sanction Severity and Perceived Punishment Probability” Effort Provision” 13 May 2019 28 January 2019 Christoph Engel Christoph Engel (joint with Keren Weinshall) “Governing Heterogeneous Societies” “Manna from Heaven for Judges: Judges’ Reaction to a Quasi-Ran- 04 February 2019 dom Reduction in Caseload 17 June 2019 Martin Sternberg “Hybrid Markets: Human Pricing and the Presence of Algorithms” Christoph Engel and Lilia Zhurakhovska 18 February 2019 “Governing with Words” 01 July 2019 Yoan Hermstrüwer “School Choice and Matching with Procedural Information” Maj-Britt Sterba 25 February 2019 “Fairness Views on Risk-Taking Given Different Effort Provision” 22 July 2019 Jens Frankenreiter “Bridging the Gap Between Experiments and Observational Studies? Cornelius Schneider The Neyman-Rubin Causal Model and Propensity Score Matching” “The Bright Side of Tax Evasion” 25 February 2019 22 July 2019

Christoph Engel Eugenio Verrina “Property is Dummy-Proof” and “Does the Fundamental Transforma- “The Dark Side of Experts” tion Deter Trade?” 06 August 2019 11 March 2019 Adrian Hillenbrand Nathan Maddix (joint with Fabian Winter) “Policy Preferences for Financial Nudges – Evidence from the United “How the Stability of Social Relations Shapes the Emergence of Latent States” Norms” 14 March 2019 06 August 2019

Eugenio Verrina Nan Zhang “The Dark Side of Experts” (joint with Amalia Álvarez) 25 March 2019 “Tracking the Trump Effect: How Political Campaigns Change the Unsayable” Sofia Monteiro 07 October 2019 “Belief Revision without Behavioral Change in Nutrition Programs: Experimental Evidence from a Pop-Up Grocery Store in South Africa” Lisa Lenz 28 March 2019 “Strategic Discrimination in Embedded Settings” 14 October 2019 Cornelius Schneider “Negative Income Tax and Beliefs” Claudia Cerrone 01 April 2019 “Delegation under Overconfidence” 28 October 2019 Adrian Hillenbrand “Someone Else Will Do It!? Designated Volunteers under Population Corinna Hausladen and Marcel Schubert Uncertainty” “Using Natural Language-Processing to Replicate Political Ideology 01 April 2019 Labels of Judicial Opinions” 28 October 2019 Alexander Schneeberger “The Effect of Self- and Social Image on Conscience Accounting” Claudia Cerrone and Yoan Hermstruewer 29 April 2019 “School Choice with Consent: An experiment” 04 November 2019 Nan Zhang “Does Immigration Undermine Public Support for Welfare? Proposal Marcel Schubert for a Conjoint Experiment” “Algorithms as Prosecutors” 29 April 2019 11 November 2019

Christoph Engel and Lars Freund Pascal Langenbach and Eugenio Verrina “Behaviorally Efficient Remedies: An Experiment” “The Power of Democratic Representation: Solving Social Dilemmas 06 May 2019 through Elected Policy-Makers” 25 November 2019

301 F. Research Seminars

Maj-Britt Sterba Stefan Schmidt (online) “Functional Beliefs in a Just World” “Shared Attention” 25 November 2019 28 April 2020

Christoph Engel Pascal Langenbach (online) “Does the Fundamental Transformation Deter Trade?” (Joint with Tim Friehe and Murat Mungan) 02 December 2019 “Event Significance Influences Belief Formation: Experimental Evidence from a Taking Game” Adrian Hillenbrand and Eugenio Verrina 04 May 2020 Introduction of a Job-Market Paper 09 December 2019 Daniel Toribio-Florez (online) “From the MPS to our MPI: A Common Discussion about Open Science” 2020 04 May 2020 Sebastian Schneider (online) Laurence O’Hara and Victoria Barnes “Tell Me the Truth if It Fits my Agenda: Experiments on Information “Does the Fundamental Transformation Deter Trade?” Avoidance to Justify (the Abstinence from) Actions 20 January 2020 05 May 2020

Yoan Hermstrüwer und Pascal Langenbach Ali Seyhun Saral (online) “Governing with Humans and Computers: An Experimental Investiga- “Social Choice for Social Production: Aggregation of Voluntarily tion” Provided Information Goods” 27 January 2020 05 May 2020

Pascal Langenbach and Cornelius Schneider Cornelius Schneider (online) “Public Opinion and Courts” (Joint with Wladyslaw Mill) 10 February 2020 “Less Enforcement, Higher Revenues? An Empirical Investigation of Germany Tax Enforcement” Christoph Engel 11 May 2020 “Does the Fundamental Transformation Deter Trade?” 17 February 2020 Rima-Maria Rahal (online) (Joint with Lawrence O’Hara) Yoan Hermstrüwer and Pascal Langenbach “Context Dependence of Normative Judgments – Evidence from a “Governing with Humans and Computers: An Experimental Investiga- Survey Study During the COVID-19 Epidemic?” tion” 11 May 2020 17 February 2020 Nathan Maddix (online) Christoph Engel “When the Workplace is Home: Experimental Evidence on Remote “Does the Fundamental Transformation Deter Trade?” Work Productivity” 17 February 2020 13 May 2020

Christoph Engel Daniel Salicath (online) “Judicial Tech” “Decision-Making under Scarcity for the Poor” 02 March 2020 13 May 2020

Maj-Britt Sterba (online) Shu Chen (online) “Lost Control: Personal Experience during the Corona Pandemic and (Joint with Sebastian Kube and Matthias Wibral) Preferences for Redistribution” “How Communication Moderates Intergroup Vicarious Retribution: 20 April 2020 An Online Experiment Design” 18 May 2020 Lukas Kiessling (online) “Peers and Mental Health” Yoan Hermstrüwer (online) 21 April 2020 (Joint with Claudia Cerrone and Onur Kesten) “School Choice with Consent: An Experiment” Marcel Schubert (online) 18 May 2020 “Vectorizing Social Cues” 27 April 2020 Eriselda Danaj (online) (Joint with Susan Fiedler) Ali Seyhun Saral (online) “The Consistency of Counterproductive Work Behavior” “Social Choice for Social Production: Voluntary Provision and Aggre- 25 May 2020 gation of Information Goods” 27 April 2020 Alina Fahrenwaldt (online) (Joint with Daniel Toribio-Flórez) Sofia Monteiro (online) “Do Governmental Covid-19 Measures Affect Social Distancing Norms “Selection Neglect and Training in Bayesian Reasoning” and Intervention Behavior? Data from Germany” 28 April 2020 25 May 2020

302 F.II Internal Speakers in our Research Seminars

Alina Fahrenwaldt (online) Sebastian Schneider (online) “Bott, K. M., Cappelen, A. W., Sørensen, E. Ø., & Tungodden, B. (2019). “Addressing Validity and Generalizability Concerns in Field Experi- You’ve Got Mail: A Randomized Field Experiment on Tax Evasion. ments” Management Science” 7 October 2020 08 June 2020 Lukas Kiessling (online) Maj-Britt Sterba (online) “Parental Paternalism” “Lost Control and Preferences for Redistribution – Results” 7 October 2020 15 June 2020 Nathan Maddix (online) Nathan Maddix (online) “The Mountain, the Hills, and the Plateau: Enhanced Choices in Fi- “Opt-Out Defaults and Active Choices: Expertise, Choice, and Projec- nance, Energy, and Health Domains” tive Paternalism” 7 October 2020 16 June 2020

Claudia Cerrone (online) “Estimating Present Bias and Sophistication. Testing ‘Doing it Now or Later’” 22 June 2020

Eugenio Verrina (online) “Personal Norms, Social Norms, and Image Concerns” 22 June 2020

Laurence O’Hara (online) (Joint with Rima-Maria Rahal) “Compliance Given Incentives to Free-Ride” 29 June 2020

Carina Hausladen (online) (Joint with Martin Fochmann and Peter Mohr) „Predicting (Dis-)Honesty: Leveraging Text Classification for Behavioral Experimental Research“ 06 July 2020

Christoph Engel (online) (Joint with Eyal Zamir) “Sunlight is the Best Disinfectant. Or Is It?” 06 July 2020

Lisa Lenz (online) “The Impact of Inclusive Social Policies on Economic Types of Discrimination” 13 July 2020

Nina Grgić-Hlača “Dimensions of Diversity in Human Perceptions of Algorithmic Fairness” 13 July 2020

Zvonimir Bašić (online) “Social Norms, Personal Norms, and Image Concerns” 13 July 2020

Sebastian Schneider (online) “Higher-Order Risk Preferences: New Experimental Measures, Determinants, and Related Field Behavior” 13 July 2020

Lukas Kiessling (online) “The Long-Run Effects of Peers on Mental Health” 13 July 2020

Ali Seyhun Saral (online) “Evolution of Conditional Cooperation in Prisoner’s Dilemmas” 7 October 2020

303 304 G. Visiting Scholars

305 G. Visiting Scholars

G. Visiting Scholars

Affiliates

Anne van Aaken 01 July 2007 31 March 2021 Isabel Schnabel 01 October 2007 31 March 2021 Stefan Bechtold 01 January 2009 31 March 2021 Stefan Magen 01 October 2010 31 March 2021 Felix Bierbrauer 01 April 2011 31 March 2021 Christian Traxler 01 September 2011 31 March 2021 Sebastian Goerg 01 October 2012 31 March 2021 Lilia Zhurakhovska 01 July 2013 31 March 2021 Niels Petersen 01 April 2015 28 February 2021 Michael Kurschilgen 01 November 2015 31 March 2021 Emmanuel Towfigh 31 March 2017 31 March 2021 Paul Schempp 01 April 2017 31 March 2021

Visiting Researchers

Carl Christian von Weizsäcker since 01 April 2004 Alexander Schneeberger 01 October 2016 31 December 2020 Lisa Lenz 01 October 2016 31 December 2020 Stephanie Urena Salas 01 July 2016 30 June 2019 Oliver Himmler 01 September 2016 31 December 2020 Carina Hausladen 01 October 2017 30 September 2020 Sotiris Georganas 25 November 2017 31 December 2020 Ignacio Herrera-Anchustegui 23 April 2018 07 June 2018 Adrian Künzler 11 June 2018 29 June 2018 Rea Antoniou 30 July 2018 31 August 2018 Matthias Heinz 01 March 2018 31 December 2018 Fedor Levin 01 August 2016 30 April 2019 Tobias Werner 17 September 2018 31 March 2019 Konstantin Chatziathanasiou 01 October 2018 31 December 2020 Rima-Maria Rahal 22 October 2018 31 August 2020 Manuel Froitzheim 01 January 2019 30 June 2019 Sylvia Beckmann 01 January 2019 30 June 2019 Marie Hellmann 01 January 2019 31 July 2019 Claudia Zoller 01 January 2019 31 December 2020 Daniela Glätzle-Rützler 01 March 2019 31 December 2020 Parampreet Bindra 01 March 2019 31 December 2020 Anna Untertrifaller 01 May 2019 31 December 2019 Lena Miketta 15 June 2019 31 December 2019 Víctor Bethencourt Rodríguez 12 August 2019 15 November 2019 Nives Della Valle 02 September 2019 31 August 2020 Eriselda Danaj 01 October 2019 31 January 2021 Alastair Ball 01 November 2019 31 July 2020 Stefania Bortolotti 26 November 2019 31 December 2022 Nina Grgić-Hlača 01 December 2019 31 December 2020 Claudia Cerrone 01 August 2020 31 December 2020 Farid Anvari 05 October 2020 20 November 2020 Marco Fontana 12 October 2020 06 December 2020

306 H. Institutional Research Cooperations

307 H. Institutional Research Cooperations

H. Institutional Research Cooperations

ECONtribute Law & Economics Workshop Institute for Advanced Studies (IHS) University of Bonn, since 2006 Stefanie Egidy and Yoan Hermstrüwer are co-organizers Matthias Sutter has been appointed member of the scientific advisory board of the Institute for Advanced Studies (IHS) in The ECONtribute Law & Economics Workshop is a bi-weekly Vienna (2018–2021). interdisciplinary workshop that brings together social scientists and legal scholars whose research focuses on Law & Economics. It is jointly organized by the Graduate School International Max Planck Research School of Economics, the Law Facult, and the Max-Planck-Institute on Behaviorally Smart Institutions for Research on Collective Goods. Past presenters include Kathryn Spier, Jeff Rachlinsky, Roberta Romano, Ted Eisen- (IMPRS BeSmart) (see C.VI.1) berg, Katharina Pistor, Henry Hansmann, Eric Talley, Alan Partners: Schwartz, Jen Arlen, Lewis Kornhauser, and many others  Christoph Engel, MPI Bonn, Behavioral Law and Economics (https://www.jura.uni-bonn.de/castle/econtribute-law-and- econ-workshop).  Matthias Sutter, MPI Bonn, Experimental Economics  Felix Bierbrauer, University of Cologne, Faculty of Manage- ment, Economics and Social Sciences Erasmus University Rotterdam Christoph Engel has held the part-time chair in Experimental  Daniel Zimmer, University of Bonn, Faculty of Law Law & Economics since 2013.  Uri Gneezy, UC San Diego, Rady School of Management  Bertil Tungodden, Norwegian School of Economics European Network “Competition Law and  Stefan Bechtold, ETH Zurich, Center for Law and Economics” Economics joint with  Eyal Zamir, Hebrew University, Law School  the Centre for Competition Policy (CCP) at the University Chair: Christoph Engel of East Anglia

 the Amsterdam Center for Law and Economics (ACLE) at International Max Planck Research School on the University of Amsterdam Adapting Behavior in a Fundamentally Uncer-  the European University Institute, in particular the Robert tain World (IMPRS Uncertainty) (see C.VI.2) Schuman Centre and the Florence School of Regulation  the Bergen Center for Competition Law and Economics The International Max Planck Research School on Adapting (BECCLE) at the Norwegian School of Economics and the Behavior in a Fundamentally Uncertain World (IMPRS Uncer- University of Bergen tainty) combined approaches from economics, law, and psychology to explain human decisions under uncertainty more  the Mannheim Centre for Competition and Innovation effectively and to better design institutional responses. (MaCCI) at the ZEW Centre for European Economic Re- search and the University of Mannheim  The Uncertainty School was jointly hosted by:

 The institute organized a two-day workshop on “Exper-  Max Planck Institute for Human Development, Berlin imental Comparative Law” on 23–24 May 2019 for the (Gigerenzer) network.  Faculty of Economics, University of Jena (Kirchkamp, Cantner)

308 H. Institutional Research Cooperations

 Department of Psychology, University of Jena (Kessler, German legal academics have a national or European agenda. Rothermund) Not too many of them publish in the U.S. law reviews, and even less of them submit their manuscripts to international  Faculty of Law, University of Bonn (Zimmer) peer-reviewed journals. While in the top U.S. law schools many  Faculty of Management, Economics, and Social Sciences, faculty members hold a second degree, this is rare in Germa- University of Cologne (Bierbrauer) ny. Compared with most of their national peers, the lawyers working at the institute are therefore closer to the social  Rationality Center, Jerusalem (Kareev) sciences and to the American discourse in law.  Workshop in Political Theory and Policy Analysis, Bloom- Given the very positive attitude of most German law faculties, ington (Todd) the additional knowledge and skills that lawyers acquire at the  Psychology Department, Bloomington (Todd) institute are likely to be well received by the German academic market. This expectation is supported by the fact that all who  Interdepartemental Centre for Research Training in Eco- have been working at the institute and passed their habilita- nomics and Management, tion in law quickly gained a chair. Yet, if candidates on top had University of Trento (Mittone) a U.S. network, this would make them even more competitive. And with the additional expertise, lawyers originating from the Co-chairs were Christoph Engel and Oliver Kirchkamp. institute might also want to apply for positions in countries like the Netherlands, the UK, Denmark, or even the U.S. All these countries might be attractive, since their legal academia Kadir Has University is not only curious about neighboring disciplines, but is willing to define the law itself as a social science. Criminology not- Cooperation between the MPI and Kadir Has University for the withstanding, such positions are still very rare in Germany. project “Corporate Culture and Employee Productivity: A Ran- domized Informational Intervention on Multiple Corporations” In order to make it for a position specifically targeted at the (2019–2021). intersection between law and one of the social sciences, be that economics or psychology, the applicant first and foremost needs publications in good peer-reviewed journals. The Toulouse School of Economics & University of institute provides any possible support for this, and we gladly Lausanne see that these efforts are paying off. But it would help lawyers who are interested in such a career even better if the market Cooperation between all three institutions for the project “Cog- perceived them as part and parcel of U.S. legal scholarship. nitive and Non-Cognitive Skills in Adolescents” (2019–2021). Specifically, it can be expected that having been an assistant professor at a good U.S. law school would provide them with two benefits at a time: additional expertise and contacts, and University of Innsbruck a very visible signal on the market. With these considerations in mind, we have approached the Matthias has held a part-time chair in Experimental Econom- University of Virginia Law School. The school has consistently ics since 2006. been ranked among the 10 best schools in the United States. It is strongly invested in law and economics, law and psychology, and was among the founding fathers of the empirical University of Cape Town legal movement. The focus of the Virginia Law School is thus particularly congenial to the program of the institute. We Cooperation between MPI and UCT for the project “The Effect are therefore very pleased that the Virginia Law School has of Technology-Assisted Behavioral Interventions in Type-2 repeatedly offered researchers from the institute the opportu- Diabetics”. nity to spend time there as visiting professors. The program is financed from Max Planck funds. Two Senior Research Fellows (Emanuel Towfigh and Jens Frankenreiter) have held Visiting Assistant Professorship at the this position, to full mutual satisfaction. University of Virginia German legal scholarship is very receptive of insights and findings from other disciplines. Many law professors hold an LL.M. from a good U.S. law school. The U.S. legal literature is widely read and cited. Despite this attitude of openness, most

309 310