IAREP newsletter November 2010 IAREP International Association for Research in Economic Psychology http://www.iarep.org/

November 2010 Newsletter

The IAREP Newsletter is issued by the International Association for Research in Economic Psychology as an announcement bulletin for its members.

Contributions to this newsletter are welcome. To submit contributions please e-mail Ofer Azar ([email protected] ). Relevant items include information about conferences, workshops, special issues of journals or other activities in economic psychology, behavioral , and related fields.

If you are a IAREP member and want to send an e-mail to all other IAREP members, you can do so by sending an e-mail to [email protected] . The administrator of this mailing list is IAREP administrative officer, Sandie McHugh, [email protected] .

Newsletter Editor: Ofer Azar Department of Business Administration Guilford Glazer Faculty of Business and Management Ben-Gurion University of the Negev P.O.B. 653, Beer-Sheva 84105, Israel E-mail: [email protected]

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IAREP Officials

President: Alan Lewis University of Bath, UK E-mail: [email protected]

Honorary Secretary: Tomasz Zaleskiewicz Warsaw School of Social Sciences and Humanities, Poland E-mail: [email protected]

Honorary Treasurer: Rob Ranyard University of Bolton, UK E-mail: [email protected]

Editors, Journal of Economic Psychology: Erik Hoelzl University of Cologne, Germany e-mail: [email protected]

Erich Kirchler University of Vienna, Austria e-mail: [email protected]

President Elect: David Leiser Ben-Gurion University of the Negev, Israel E-mail: [email protected]

Newsletter Editor: Ofer Azar Ben-Gurion University of the Negev, Israel E-mail: [email protected]

Administrative officer: Sandie McHugh University of Bolton, UK E-mail: [email protected]

Mailing addresses of the above officials and IAREP officials in the immediate past are listed on http://www.iarep.org/officials.htm

A full list of previous IAREP officials appears on http://www.iarep.org/archive_officials.htm

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Table of Contents

Editorial ...... 4 From the President's Chair ...... 4 IAREP General Assembly Minutes ...... 5 Elections for IAREP Officers ...... 8 Elections for IAREP Country Representatives ...... 8 Changes in ICABEEP Executive Committee ...... 10 Call for Proposals for Joint IAREP-SABE-ICABEEP Workshops ...... 10 The IAREP/SABE/ICABEEP Cologne 2010 Conference ...... 11 2011 ICABEEP/IAREP/SABE Conference in Exeter ...... 11 IAREP Conference 2012 ...... 12 Editorial: The Journal of Economic Psychology Enters Its Fourth Decade ...... 12 Student Paper Competition ...... 16 Elsevier/IAREP/SABE/ICABEEP Best Student Paper Competition 2011 ...... 17 IAREP/SABE/ICABEEP Summer School 2010 “ and Economic Psychology” ...... 18 Journal of Economic Psychology Impact Factor for 2009 ...... 20 SABE New Board ...... 20 The Mailing List of the Society for Judgment and Decision Making ...... 22 SABE Sessions at the EEA 2011 Conference ...... 22 The 14th International Conference on Social Dilemmas ...... 24 Didactic Experiments Website ...... 24 New Book on Prospect Theory ...... 24 7th IMEBE in Barcelona. April 7-9th, 2011 ...... 25 Western Economics Association International (WEAI) Annual Conference, June 29 – July 3, 2011 ...... 25 SEET 2011 Conference ...... 26 The 2011 Annual International Meeting of the Economic Science Association ...... 27 Economic Psychology Association ...... 28 Special Issue of the Journal “Psychology and Economics” on Economic Psychology of Innovation ...... 31 International Research-to-Practice Conference “Economic psychology: Past, Present, Future” ... 32 Social Sciences and Neuroscience: How Can They Inform Each Other? ...... 33 Behavioral Decision Making Conference in Israel, May 30th to June 1st, 2011 ...... 34

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Editorial Ofer Azar

Over the last year we had three successful IAREP/SABE/ICABEEP events, starting with the workshop in Bolton, then the summer school in Moscow, and finally the conference in Cologne. It was a real pleasure to see how the cooperation between IAREP and SABE gets stronger (with a joint workshop and a summer school for the first time) under the new umbrella organization of ICABEEP. This cooperation is planned to continue, and you can find in this newsletter a call for proposals for joint workshops. I wish to thank Detlef Fetchenhauer, Julia Pradel, Julia Sauerbrey and their team for organizing the excellent conference in Cologne, which was the first IAREP/SABE/ICABEEP conference. Earlier this year we had elections for IAREP Country Representatives. I thank all the former Country Representatives for their contribution and wish good luck to the new ones (though in many cases the two are the same person…). We also had some additional changes related to IAREP and its affiliated journal, the Journal of Economic Psychology . Erik Hoelzl and Erich Kirchler replace Gerrit Antonides and Daniel Read as the Editors of the Journal of Economic Psychology . Daniel and Gerrit served for five years and we are all grateful to them for their hard work, which brought the journal to very impressive achievements, as evidenced for example in the impact factor of the journal. I wish good luck to Erich and Erik and I am confident that they will continue to promote the journal very well. Tomasz Zaleskiewicz replaced me as the Honorary Secretary and the Webmaster of IAREP website and I wish him good luck in these jobs. Don't forget to submit your best research to the ICABEEP/IAREP/SABE conference in Exeter! Wishing you all a good and fruitful year,

Ofer

From the President's Chair Alan Lewis

Leaves falling outside my office window, my youngest daughter already becoming excited by the prospect of festivities at the end of December; it is a time not only of seasonal change but also of major economic and political change. Recession has hit most of us with public sector pensions

4 IAREP newsletter November 2010 and employment under threat in many countries. In the U.K. undergraduate tuition fees are set to treble in a few years making U.K. universities among the most expensive to attend in the world. These surely are the issues economic psychology and behavioural economics should be attending today. So the title of the IAREP/SABE/ICABEEP 2010 conference in Cologne ‘A boat trip through economic change’ is most apt. Thanks Detlef Fechenhauer, Julia Pradel and Julia Sauerbrey and all the colour co-ordinated helpers for making the meeting such a success. The range of papers and the quality of the plenary sessions were impressive (as well as the boat trip of course). We have the Exeter conference to look forward to in 2011, organised principally by Stephen Lea, one of our longest serving IAREP members. I hope to see many of you there, spotting the egrets and curlews from the decks of the river Exe ferry.

IAREP General Assembly Minutes Cologne, Germany, September 8, 2010 Prepared by Ofer Azar

Executives Present: Alan Lewis (President), Ofer Azar (Honorary Secretary), Rob Ranyard (Honorary Treasurer), Gerrit Antonides (JoEP Editor)

Alan Lewis introduces the agenda.

1. Approval of the Minutes from Halifax 2009 The IAREP General Assembly Minutes from Halifax, Nova Scotia, Canada (July 9, 2009) were published in the October 2009 Newsletter. The General Assembly approves the minutes without changes.

2. Karel Riegel Stephen Lea reports the sad news that Karel Riegel, a member of IAREP for many years, has died.

3. New Editors for the Journal of Economic Psychology

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Alan Lewis reports that the search committee recommends that Erik Hoelzl and Erich Kirchler will be the new Editors of the Journal of Economic Psychology . The General Assembly approves this appointment.

4. Editor's Report Gerrit Antonides presents the Editor's report on the Journal of Economic Psychology . Among the many statistics reported, one of the important ones is the increase in the impact factor of the journal to 1.47, which means that JoEP ranks 51 st among the 245 economics journals covered by Journal Citation Reports 2009. Several special issues were published in recent years, the ones on the Dead Sea conference and the Research Inspired by Thomas C. Schelling producing a particularly large number of citations.

5. Current IAREP Officers and New Appointments The current composition of IAREP officers until the end of the Cologne 2010 conference (or the end of September 2010 in the case of JoEP Editors) is as follows: Alan Lewis – President. David Leiser – President-Elect. Ofer Azar – Honorary Secretary. Rob Ranyard – Honorary Treasurer. Gerrit Antonides and Daniel Read – Editors of the Journal of Economic Psychology .

Ofer Azar presents the outcome of the call for nominations for IAREP Officers earlier this year. In light of the large burden on the Honorary Secretary, who used to serve in three different roles – Secretary, Webmaster, and Newsletter Editor – it was decided to create a separate position of a Newsletter Editor. The call for nominations yielded the following list of candidates: Alan Lewis – President until 2011. David Leiser – President in 2011-2013. Tomasz Zaleskiewicz – Honorary Secretary in 2010-2012. Rob Ranyard – Honorary Treasurer in 2010-2012. Ofer Azar – Newsletter Editor in 2010-2012.

The General Assembly approves these appointments and Ofer Azar thanks the Officers for the time and effort they put to promote IAREP activities.

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6. Treasurer's Report Rob Ranyard presents the Treasurer's Report. For 2011 a sum of 2000 Euros is dedicated for joint IAREP/SABE/ICABEEP workshops. The General Assembly approves the report. The report is available to IAREP members upon request (interested members should contact Rob Ranyard).

7. Suggested Policy for Future Conferences Alan Lewis reports that in the discussions of the ICABEEP Executive Committee the proposed policy about joint conferences was as follows: joint IAREP/SABE/ICABEEP conferences will be held every two years. In the other years, IAREP and SABE will each hold a separate conference. Joint conferences are better scheduled for July, because in September the academic year in the US is already started making it difficult for many SABE members to attend a conference. In years in which two separate conferences are scheduled, their dates should allow interested people to attend both conferences.

8. Upcoming Conferences Stephen Lea presents some information about the 2011 ICABEEP/IAREP/SABE conference that will take place in Exeter. Tomasz Zaleskiewicz presents an attractive presentation about Wroclaw, showing the beauty of the city and its many dwarf sculptures. The General Assembly approves the proposal for a 2012 IAREP conference in Wroclaw. Christine Roland-Levy mentions that in 2014 a ICAP conference will take place in Paris on July 8-13, and it is possible to attach the IAREP conference to the Division 9 section of the ICAP conference. For 2013 and possibly 2015, Romania and Brazil are mentioned as possible locations.

9. Country Representatives Elections and Roles Alan Lewis updates that a proposal of Ofer Azar to change and simplify the rules for IAREP Country Representatives elections was discussed in the IAREP Board Meeting. The discussion also led to further raising the questions what the roles of the Country Representatives should be both in their countries and in the IAREP administration – for example, what is the purpose of the Country Representatives (Board) meeting when there are in addition meetings of the Executive Committee and of the General Assembly. Alan will seek additional feedback on the relevant issues from IAREP members, and these issues will be discussed further and brought to the General Assembly for approval in due time.

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10. Museum in Brazil for Economic Psychology Vera Rita updates about an initiative to establish an interactive museum for economic psychology in Brazil, to be funded by the central bank of Brazil.

11. Moscow Summer School Stephen Lea reports that the IAREP/SABE/ICABEEP summer school in Moscow, just before the Cologne conference, was a great success, with many brilliant and highly interested students and very prominent scholars on the faculty.

Ofer Azar thanks Detlef Fetchenhauer, Julia Pradel, Julia Sauerbrey and their team on behalf of the conference participants for hosting this excellent conference and putting a great deal of time and effort into this successful event.

Elections for IAREP Officers

At the General Assembly in Cologne, we had elections for President-Elect, Honorary Secretary, Honorary Treasurer, and Newsletter Editor. The task of editing IAREP newsletter was performed previously by the Honorary Secretary, but the Executive Committee decided to have a separate person perform this task due to the many responsibilities the Honorary Secretary has. The elected Officers and their terms are as follows:

President (2009-2011) - Alan Lewis President-Elect (2011-2013) - David Leiser Honorary Secretary (2010-2012) - Tomasz Zaleskiewicz Honorary Treasurer (2010-2012) - Rob Ranyard Newsletter Editor (2010-2012) - Ofer Azar

More details can be found in the minutes of the General Assembly.

Elections for IAREP Country Representatives

Following the elections held earlier this year, the new IAREP country representatives are as follows:

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Australia: Brad JORGENSEN Austria: Erich KIRCHLER Bosnia-Hercegovina: Lidija LESKO Brazil: Vera Rita di Mello FERREIRA Chile: Wenceslao UNANUE MANRIQUEZ Czech Republic: Iva KIROVOVA Denmark: Alice GRØNHØJ Finland: Satu LÄHTEENMÄKI France: Christine D. ROLAND-LÉVY Germany: Fabian CHRISTANDL Hungary: Linda DEZSO Israel: Ofer AZAR Italy: Luigi MITTONE Japan: Shinji TERAJI Malaysia: Takemi FUJIKAWA Netherlands: Harold W.J.M. MIESEN New Zealand: Simon KEMP Norway: Ellen K. NYHUS Poland: Agata GASIOROWSKA Portugal: Ricardo Pinheiro ALVES Romania: Eugen IORDANESCU Russia: Elena TOUGAREVA Slovenia: Marko POLIC South Africa: Dion T. GEORGE Sweden: Tommy GÄRLING Ukraine: Liudmila M. KARAMUSHKA United Kingdom: Rob RANYARD USA: Harold ZULLOW Venezuela: Klaus JAFFE CARBONELL

I wish good luck to all the new Country Representatives and thank them for their willingness to contribute to IAREP in this role. I also thank the former Country Representatives for their contribution and effort in this important role.

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Changes in ICABEEP Executive Committee

After the Rome 2008 conference, IAREP and SABE elected a seven-member committee to advance the cooperation between the two organizations, including the possibility of creating a confederation between the two organizations. The committee created a proposal for a confederation (ICABEEP), which was accepted at the General Assemblies of IAREP and SABE in Halifax 2009. From that point the committee's role has changed and its main task has become to administer the joint activities of IAREP and SABE, under the umbrella confederation of ICABEEP. In accordance with the changed role, the committee's name also changed to be the Executive Committee of ICABEEP. The committee, which included Ofer Azar (Chairperson), Morris Altman, Gerrit Antonides, David Leiser, Louis Levy-Garboua, Alan Lewis and Rob Ranyard, completed its term in October 2010. I wish to thank the committee members for their important contribution, first in creating the proposals for increased IAREP-SABE cooperation and the establishment of ICABEEP, and then for managing various issues related to ICABEEP activities. For the period October 2010 – October 2012, IAREP and SABE elected Gerrit Antonides, Ofer Azar, Vera Rita di Mello Ferreira, Louis Lévy-Garboua, Charlotte Phelps and Gideon Yaniv as the new ICABEEP Executive Committee members. Ofer Azar was elected to serve as the committee's Chairperson. I wish good luck to the new committee and hope to see the cooperation between IAREP and SABE continuing well and resulting in the promotion of economic psychology and behavioral economics.

Call for Proposals for Joint IAREP-SABE-ICABEEP Workshops

In the joint IAREP/SABE/ICABEEP conference in Cologne, IAREP and SABE decided to dedicate up to 4000 Euros together to sponsor workshops that will take place until December 2011. Most likely each workshop that will be chosen to be funded will receive 1000-2000 Euros. IAREP or SABE members who are interested in organizing such a workshop should submit their proposals to Ofer Azar (e-mail: [email protected] ) by December 15, 2010. If the amount of

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4000 Euros will not be exhausted in this round of proposals, a new deadline for more proposals will be announced. New IAREP-SABE-ICABEEP workshops, when available, will appear on http://www.iarep.org/ICABEEP_activities.htm .

The IAREP/SABE/ICABEEP Cologne 2010 Conference

The conference we had in September in Cologne was not only a great conference with excellent invited speakers, sessions, and social activities, but also made a history by being the first IAREP- SABE-ICABEEP conference. Because ICABEEP was only established in Halifax in 2009, previous joint conferences of IAREP and SABE were not ICABEEP conferences. On behalf of IAREP, SABE and ICABEEP, I wish to thank all those whose effort contributed to this successful conference – first and foremost to Detlef Fetchenhauer, Julia Pradel, and Julia Sauerbrey – and also to their team and to the Scientific Committee (Detlef Fetchenhauer – Chair, Ofer Azar, Christian Cordes, Ewa Gucwa-Lesny, Erik Hölzl, Erich Kirchler, and Alan Lewis).

2011 ICABEEP/IAREP/SABE Conference in Exeter July 12-16, 2011 Stephen Lea

By the invitation of the University of Exeter, the 2011 ICABEEP/IAREP/SABE conference will be held at the university's main (Streatham) campus, about 1 Km north of the centre of the city of Exeter, in the beautiful county of Devon, south-west England. The conference website will eventually be able to give you all the details you need and enable you to register for the conference, submit your paper, and find out more information about what you can do during the conference, and also possibilities for further visits before or after. Your abstracts will be due by 31st January 2011 . The website is already up and running, at http://2011.iarep.org , but it is not yet fully functional. However, it will already give you essential preliminary information. Featured speakers at the conference will include: • Alex Haslam – leading social identity theorist

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• Benedikt Herrmann – innovative experimental economist and cross-cultural researcher

• Russell Belk – world leading consumer psychologist (the 2010 Kahneman lecturer)

• and SABE’s Simon lecturer (name to be announced soon)

The dates of the conference are 12th to 16th July 2011 . We look forward to welcoming IAREP members to Exeter.

IAREP Conference 2012 Tomasz Zaleskiewicz

From 5th to 8th September 2012 the Department of Economic Psychology of the Warsaw School of Social Sciences and Humanities in Wroclaw (Poland) is going to organize the annual IAREP conference . The conference will be held in Wroclaw - one of the most beautiful cities in Poland (with a great marketplace and a wonderful cathedral). More information about the city can be found on the following web pages: http://www.wroclaw.ivc.pl/english/index.html or http://www.wroclaw.pl If you want to know the fascinating history of the city, read the book: ‘ Microcosm: A Portrait of a Central European City ’. The local conference organizers are: Tomasz Zaleskiewicz, Agata Gasiorowska and Anna Helka. The conference web page will start in Spring 2011 where more information about the conference organization and schedule will be given. We hope to see you all in Wroclaw!

Editorial: The Journal of Economic Psychology Enters Its Fourth Decade Erik Hoelzl and Erich Kirchler

Economic Psychology and Behavioural Economics build bridges between the disciplines of economics and psychology. While Economic Psychology dates back as far as 1900, Behavioural Economics has a shorter but highly successful tradition. Since early on, economists

12 IAREP newsletter November 2010 and psychologists showed an interest in each other’s fields. It has long been beyond dispute on both sides that psychology and economics not only have extensive common boundaries, but also an overlap in the questions they pose. The main argument stated that it is not the abstract concepts – like money, inflation, or unemployment rates – by themselves that influence each other, but that concrete people act and interact in a given economic environment and thereby change it. Economics has constructed highly sophisticated formal decision-making models to explain and predict economic behaviour, starting from only a small number of axioms about the logic of human behaviour. These highly sophisticated mathematical models often do not consider psychology. Economic psychologists and behavioural economists argue that this is an unacceptable limitation. Classical economics, which traces its origins to Adam Smith’s (1776) “Wealth of Nations”, found itself initially challenged towards the end of the 19 th century. (1899) opposed the basic assumptions of rationality and utility maximization with his findings on . Gabriel Tarde (1902) is assumed to be the first to use the term “economic psychology”. He pointed to the need to analyse economic behaviour from a psychological perspective. Wesley C. Mitchell (1914) predicted already at the beginning of the last century that a significant change would to be taking place in the attitude of economic theorists toward psychology. Around the same time, (1918) wrote that economists may attempt to ignore psychology, but that it is a sheer impossibility to ignore human nature in a science of human behaviour as is economics. (1951) stressed the importance of psychology for economics, as well as the importance of economics for psychology. According to Katona, economic research needs to discover and analyze the forces behind economic processes, as well as the forces responsible for economic actions, decisions, and choices. In his view, economics without psychology would not succeed in explaining important economic processes, and psychology without economics would not succeed in explaining some of the most common aspects of human behaviour. Among social scientists, the voice of Herbert Simon (1955) attracted particular attention. He saw restrictions to the validity of the widely accepted rational model, especially in the limited cognitive capacities of humans. Economic Psychology has gained considerable momentum in the last three decades, highlighted by the recognition of the research by and by the Nobel Prize Committee in 2002. Major steps towards institutionalisation and recognition in the scientific community have been the foundation of the International Association for Research in Economic Psychology (IAREP) and the Society for the Advancement of Behavioral Economics (SABE). The two organizations have recently joined under the umbrella of “The International

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Confederation for the Advancement of Behavioral Economics and Economic Psychology” (ICABEEP). Another major step was taken in 1981, when the “Journal of Economic Psychology” was founded by a group of economic psychologists. The first editor, Fred van Raaij, established the Journal as an extremely effective public face of economic psychology. He served for a decade and then passed editorial control to Stephen E. G. Lea, who contributed to the rising standards and international reputation of the Journal for five years. When his term ended, Alan Lewis took over, followed by Peter S. Earl and Simon Kemp, and – in the past five years – Gerrit Antonides and Daniel Read. They all showed high dedication to the journal and their outstanding efforts made the Journal of Economic Psychology an impressive success story. We would like to thank them all, and we would like to thank the associate editors, the members of the editorial board and the ad hoc reviewers. Their inestimable contributions led to a highly visible outlet in the field of economic psychology and behavioural economics. Over the years, the impact of the Journal has been constantly rising. Taking responsibility for the journal represents a true approach-avoidance conflict. The honour of becoming editors is definitely positive and flattering. At the same time, our awareness of previous editors’ hard work and success with the journal presents a daunting responsibility. We will do the best we can to guarantee the high standard of the journal and we rely on support from the associate editors and the members of the editorial board. The past has shown that the journal profits from publishing work that is not confined to one single discipline, but touches on both psychology and economics, and maybe on other social sciences such as anthropology, finance, marketing, political science or sociology as well. The profile of the journal, as mirrored in the contents published in the first 25 years, is shown in the following Table 1 (adopted from Kirchler, E. & Hoelzl, E. 2006. Twenty-five years of the Journal of Economic Psychology (1981-2005): A report on the development of an interdisciplinary field of research. JoEP, 27, 793-804). The Table contains also a classification of the topics of the articles published in the period from 2006 to September 2010. The range of topics is wide and changing over time; recently the frequency of published studies on wellbeing and happiness has increased and in the next future we expect to see more studies on neuro-psycho-economics than in the past. Although economic behaviour is closely intertwined with many aspects of human life, there are some topics that we do not consider within the scope of the Journal of Economic Psychology. For example, research in the field of work and organizational psychology without a clear relation to the topics mentioned in Table 1, a purely mathematical model of a market, or an analysis of a large data set on consumer

14 IAREP newsletter November 2010 spending without reference to psychological processes will probably be better suited for other journals.

Table 1: Categorization of publications in the JoEP from 1981 to 2005 (Kirchler & Hoelzl, 2006) and from 2006 to 2010 (including 4 th issue)

Category 1981-1985 1986-1990 1991-1995 1996-2000 2001-2005 2006-2010(4) Total

1. Theory and history 6 5 8 7 23 12 61 2. Individual decision making 10 10 19 26 26 38 129 3. Cooperation and competition 4 5 13 24 20 50 116 4. Socialization and lay theories 4 16 6 4 5 16 51 5. Money, currency and inflation 7 13 5 13 10 10 58 6. Financial behaviour and investment 3 9 24 26 15 35 112 7. Consumer attitudes 5 4 10 10 10 12 51 8. Consumer behaviour 11 29 27 20 31 10 128 9. Consumer expectations 15 13 15 5 7 2 57 10. Firm 1 1 7 8 4 8 29 11. Marketplace behaviour, marketing 3 3 5 15 13 1 40 and advertising 12. Labour market 8 6 14 12 13 11 64 13. Tax 12 12 14 5 16 23 82 14. Environmental behavior 27 0 3 2 12 5 49 15. Government and policy 9 7 10 8 6 6 46 16. Remaining categories 2 2 2 5 9 12 32 Happiness and wellbeing 13 13 Sports 9 9

Total 127 135 182 190 220 273 1127

We want to keep the tradition of publishing papers in a wide range of approaches, and we especially encourage multi-method applications in both laboratory and field settings. We are happy to see quantitative research as well as qualitative approaches, provided that the methods used are of high standards. We hope that relevant books in our field will be critically presented in the journal. Further, we would like to invite authors to submit state-of-the-art review articles and to encourage experts in the field to comment on such reviews. Moreover, we would like to continue with special issues on clearly defined topics, guest-edited by established experts on the basis of a detailed project plan. We encourage all authors to consider the wide range of readers and to present their work such that all readers can understand the presented research, independent of their primary expertise. Authors should aim for a clear, non-technical exposition and a clear outline of the core contribution of the article.

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We look forward to a fruitful collaboration with the associate editors, the members of the editorial board, and ad hoc reviewers. The quality of the journal depends very much on their effort. Last but not least, the most important contributors are the authors. It is their work that keeps the journal alive and it is their high quality articles that keep the impact of the journal high. We therefore invite all researchers in the fields of Economic Psychology and Behavioral Economics to submit their best work to the Journal of Economic Psychology.

Student Paper Competition Results from Cologne 2010 of the Best Papers Christine Roland-Lévy

This year, for the Cologne IAREP/SABE/ICABEEP conference, which took place in September 2010, thanks to all participants, we have received twelve very good papers for the Best Student Paper Competition. The papers came from students from eight different countries (Austria, Germany, Hungary, India, Israel, Norway, The Netherlands, USA), from both economic psychology and behavioral economics.

The prize committee was composed of the following four members: Professor Christine Roland-Lévy (Chair of the committee) Professor Louis Lévy-Garboua (President of SABE) Professor Erich Kirchler (Editor of the Journal of Economic Psychology) and Christopher Kogler.

Based both on the evaluation of the quality of the research and the overall written paper, as well as the oral presentation during the conference.

Four winners were selected for the high quality of their work. They are the following: 1st place: Shaul Shalvi, with a paper entitled “ Justified Ethicality: Observing Desired Counterfactuals Modifies Ethical Perceptions and Behavior.”

2nd place: Sebastian Kruegel , with a paper entitled “Overweighting Private Information: Three Different Measures, One Bias? ”

3rd place: Wing Shing Lee on “ Effects of Cognitive Reappraisal, Emotional Intelligence, Neuroticism, and Betrayal Experience on the Disposition to Trust ”, and Amos Schurr on “ Is

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that the answer you had in mind? The effect of perspective on unethical behavior”, both papers being of equal quality.

Prize committee members and the 2010 competition winner: Shaul Shalvi

Thanks to Elsevier Scientific, the publisher of the Journal of Economic Psychology and of the Journal of Socio-Economics, who sponsors the prizes, they received a year’s subscription to both these journals. In addition, Shaul Shalvi received 1,000 €.

In the name of the prize committee, we congratulate you all.

Elsevier/IAREP/SABE/ICABEEP Best Student Paper Competition 2011 Tomasz Zaleskiewicz

Since the Conference in Paris in 1996, IAREP has offered a prize for the best paper submitted by a student for inclusion in the program of its annual conference. Such a prize has also been offered for the IAREP/SABE joint meetings. This prize is generously sponsored by Elsevier Scientific, the publisher of the Journal of Economic Psychology and the Journal of Socio-Economics . The winner of the Elsevier/IAREP/SABE Best Student Paper Competition for 2011 will receive:

 A year's subscription to the Journal of Economic Psychology  A year's subscription to the Journal of Socio-Economics  1000 Euro The second and third place winner will receive a year's subscription to both journals.

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The current rules for the competition are: • Papers may be in any field of economic psychology/ behavioral economics. • The first author of the paper must be a student and the paper should be written in English. • The paper has to be accepted for presentation at the conference. • There is a page limit of a maximum of 25 pages, 12 font, double-spaced. Any appendix material is not included in the page count. • The panel will judge the papers using the following criteria: (a) interest of subject area; (b) quality of research; and (c) quality of writing. • Please note that abstracts and papers also need to be submitted to the conference organizers, following the guidelines announced in the general call for papers.

This competition is judged by a prize committee of senior members of IAREP and SABE consisting of:

• Christine Roland-Lévy (University of Reims Champagne-Ardenne) – Committee Chair, • Christian Cordes (Max Planck Institute of Economics), • Erich Kirchler (University of Vienna), • Christoph Kogler (University of Vienna), • Shabnam Mousavi (Georgia State University).

The initial abstract submission date for the conference is the 31st of January 2011. The deadline for submitting papers to the student paper competition is the 15th of May 2011. To participate in the competition, you need to send your paper according to the above guidelines via email to Christine Roland-Lévy ([email protected] ).

IAREP/SABE/ICABEEP Summer School 2010 “Behavioral Economics and Economic Psychology” Afterword Elena Tougareva & Alexis Belianin

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On the 3d of September IAREP/SABE/ICABEEP Summer School 2010 for PhD students and young faculty members on experimental and behavioural economics and economic psychology has successfully terminated. Summer school in Moscow was the 5 th IAREP School and became the 1 st ICABEEP Summer School

All in all, the School did work as scheduled, and we may only express our thanks to the participants who worked really hard in these fifteen days, and our admiration to the excellent work done by the School instructors - Dan Houser, Stephen Lea, Benedikt Herrmann and Tadeusz Tyszka, as well as to Maya Bar-Hillel and all participants of the second mini-conference on Rationality, Behaviour and Experiments, which was integral part of the school programme.

On August 31, School participants have presented 11 group projects on various research topics in behavioural economics and economic psychology developed during the first half of the school. Many of these reports appear to be really promising, and the participants are willing to continue their works to bring them to publications. In the last three days, the school participants together with the invited speakers took part in the second mini-conference on Rationality, Behaviour and Experiments. The school concluded with very interesting roundtable discussion.

Overall the school went of in very friendly, creative and enthusiastic atmosphere. We were very glad to get such responses in the school feedback survey as: “It was really a great experience!”, “The school was really interesting and useful. I really hope that there will be more schools like this to promote economic psychology and behavioural economics”, and “Well organized Summer School with great instructors!” The students rated high the lectures, the discussions and advice provided by the Summer school instructors, and also the quality of conference presentations. They liked the idea to combine the Summer school with a research conference. It was very important for us, because we considered the presentations of our invited conference participants as additional lectures to the school programme. We very much appreciate the contribution of Paul Webley, Fred Van Raaij, Maya Bar-Hillel, Erich Kirchler, Marcel Zeelenberg, Eric van Dijk, and Manfred Königstein to the school work. All their lectures were mentioned by the students as the most interesting presentations of the conference.

This year we marked the IAREP Summer Schools anniversary – 20 years from the first IAREP Summer School, which was held in Linz in August, 1990. It seems that “Matryoshka” (Russian doll) really could be considered as the most proper symbol of the Summer School in Moscow.

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This School became illustrative example of summer school activity’s effectiveness. It originated from the first IAREP School and was designed as a sign of intergenerational continuity. Two generations of the Linz School were involved into the schoolwork: the teachers - Stephen Lea and Fred Van Raaij, and the students - Marcel Zeelenberg, Eric van Dijk, Manfred Königstein, Elena Tougareva. It was so great to meat again and work together 20 years ago! We are sure that third generation – participants of the Moscow School – will continue the traditions by active developing of the field of economic psychology and behavioral economics in their countries. It conclusion, we would like to inform you that all materials of the school (papers, presentations files, video of the lectures, conference presentations and roundtable discussion) are available at the school website: http://www.icabeep-school.epee.hse.ru/ (see Schedule of the School and Schedule of the Conference, respectively). You can feel the atmosphere of the school by watching its detailed video report and photo albums.

Journal of Economic Psychology Impact Factor for 2009

ISI has recently published the Journal Citation Reports of 2009. The Journal of Economic Psychology , which is affiliated with IAREP, has an impact factor of 1.473, which means that it ranks 51 out of 245 economics journals. This puts JoEP in a higher rank (according to the impact factor) than some very prestigious economics journals such as the Journal of the European Economic Association, RAND Journal of Economics, Games and Economic Behavior, European Economic Review, Journal of Economic Theory, and International Economic Review . This is an impressive achievement, which reflects on the great work of the editors, as well as the reviewers and authors of the journal – and also reflects the increase in the prominence of the field. So congratulations to all involved and especially to Gerrit Antonides and Daniel Read for this great achievement!

SABE New Board

SABE recently had elections for some of its board positions. In addition, Mark Pingle has completed his term as SABE President, and Louis Lévy-Garboua has started his two-year term in

20 IAREP newsletter November 2010 this position. On behalf of SABE I want to thank Mark for his great contribution to SABE as President and to wish good luck to Louis in his new position as SABE President. The current composition of SABE board is as follows:

President Louis Lévy-Garboua

President-Elect Ofer Azar

Board Members Morris Altman Gerrit Antonides Ofer Azar Nathan Berg Gary Charness Christian Cordes Simon Gachter Shoshana Grossbard Ewa Gucwa-Lesney Simon James Reza Kheirandish (Webmaster) Louis Lévy-Garboua Gary Lynne Shabnam Mousavi (Secretary) Charlotte Phelps Mark Pingle Amnon Rappoport John Smith (Treasurer) John Tomer Jean-Robert Tyran Bijou Yang Lester

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The Mailing List of the Society for Judgment and Decision Making Jonathan Baron

The main mailing list of the Society for Judgment and Decision Making is open to everyone, not just members. Posts are moderated. Anyone can post, although those who have not joined the mailing list will not receive their own posts. Archives are public. To join the list and/or see the archives, go to http://mail.sjdm.org/mailman/listinfo/jdm-society . Typical posts are job ads, requests for literature on some topic, announcements of new books or journal issues, and substantive questions and responses about issues in the field.

SABE Sessions at the EEA 2011 Conference New York City, February 25-27, 2011 Bijou Yang Lester

SABE Session I: Organizer/Chair: Bijou Yang Lester, Drexel University Theme: “Belief and Labor Protection, Incentives and Commitments, and Differential Information and Incomplete Markets”

1. “Culturally-based beliefs and labor market institution” Fabio D’Orlando, University of Cassino, [email protected] Francesco Ferrante, University of Cassino, [email protected] Gabriele Ruiu, University of Cassino, [email protected]

2. “Incentives and Commitments for Exercise: Evidence from a Field Experiment at an On-site Corporate Fitness Center” Heather Royer, University of California, Santa Barbara, [email protected] Mark Stehr, Drexel University, [email protected] Justin Sydnor, University of Wisconsin, [email protected]

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3. “ Differential Information Economies and Incomplete Markets” Kira Pronin, Drexel University, [email protected]

Discussants: Mark Stehr, Drexel University, [email protected] Kira Pronin, Drexel University, [email protected] Francesco Ferrante, University of Cassino, [email protected]

SABE Session II: Organizer/Chair: Bijou Yang Lester, Drexel University Theme: “Hidden Costs of Minimum Contributions, Bias in Reservation-Wages Determination, and Investors with Too Many Options?”

1. “Is There a Hidden Cost of Imposing a Minimum Contribution Level to a Public Good?” Martin Kocher, University of East Anglia, [email protected] Peter Martinsson, University of Gothenburg [email protected] Xianghong Wang, Renmin University of China, [email protected] 2. “Experimental Evidence of Bias in the Setting of Reservation Wages ” David Comerford, Duke University, [email protected]

3. “Investors with Too Many Options?” Daniel Dorn, Drexel University, [email protected]

Discussants: David Comerford, Duke University, [email protected] Daniel Dorn, Drexel University, [email protected] Xianghong Wang, Renmin University of China, [email protected]

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The 14th International Conference on Social Dilemmas Martin Beckenkamp

The 14th International Conference on Social Dilemmas will be held from Wednesday July 6 through Saturday July 9, 2011, in Amsterdam. For additional details see http://www.socialdilemma.com/content/future .

Didactic Experiments Website Ariel Rubinstein

Teachers of courses in micro economics and behavioral economics are invited to use the site: http://gametheory.tau.ac.il. The site provides the teacher with free user-friendly didactic tools for conducting web-based thought experiments. After having registered, a teacher will be able to allocate problems to the students and get basic statistics on their responses. For comments and suggestion please contact Ariel Rubinstein ( [email protected] ).

New Book on Prospect Theory Peter Wakker

The book Wakker, Peter P. (2010), "Prospect Theory: for Risk and Ambiguity," Cambridge University Press, Cambridge, UK has just appeared. It has been organized so as to allow readers from different backgrounds to skip and subselect different parts, so that teaching can be targeted to different students. How to buy: http://people.few.eur.nl/wakker/ptbook/buybook/buybook.htm .

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7th IMEBE in Barcelona. April 7-9th, 2011 Meeting on Experimental and Behavioral Economics Antoni Bosch

Important dates: Deadline for submissions (full paper or extended abstract): December 1st, 2010 Notification of acceptance: January 15th, 2011 Deadline for registration: early registration (February 15th, 2011), late registration (March 1st, 2011) Conference dates: April 7-9, 2011

Invited speakers: Abhijit Banerjee (Massachusetts Institute of Technology) Vincent P. Crawford (University of Oxford and University of California, San Diego) Ernst Fehr (Massachusetts Institute of Technology and University of Zurich) Paul Glimcher (New York University) (University of California, Berkeley)

For more information: www.imebe.com

Western Economics Association International (WEAI) Annual Conference, June 29 – July 3, 2011 Participate through the Society for the Advancement of Behavioral Economics (SABE) Homa Zarghamee

The 2011 Western Economics Association International Annual Conference will be in San Diego, June 29-July 3, 2011.

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There is a lot of interest for behavioral economists this year. As noted in the Conference’s Call for Participants, highlights include:

 WEAI Presidential Address by Paul A. David, Stanford University  Keynote Address by Andrew J. Oswald, University of Warwick , on “The Economics of Happiness”  President-Elect Featured Session by Michael McBride, University of California, Irvine , "The Economics of Happiness"  President-Elect Featured Session by Diane J. Macunovich, University of Redlands , "Economic Demography"

Last year, the Society for the Advancement of Behavioral Economics (SABE) had two special sessions: “Happiness and Happiness Inequality” and “Topics in Behavioral Economics.”

This year, with your help, we can have a greater presence at the conference.

If you would like to present a paper or organize a session in the field of behavioral economics then please send me an email at [email protected] by January 15, 2011. The email should include the following information: • To submit a paper: the paper title, list of authors (with affiliations), and abstract. • To propose a session: session title, paper titles, authors (with affiliations), and abstracts.

SEET 2011 Conference Agadir, Morocco, February 24-27, 2011 Praveen Kujal

This is to inform you about an upcoming conference in experimental economics (SEET 2011) to be held in Agadir, Morocco, from February 24-27, 2011. The conference is a new initiative by experimental economists from Southern Europe and is in its second year. Deadline for submission

26 IAREP newsletter November 2010 of abstracts is December 16, 2010. All information is available at http://www.granadaworkshop.com/seet/ .

The 2011 Annual International Meeting of the Economic Science Association Chicago, July 7-10, 2011 Tim Cason

The 2011 Annual International Meeting of the Economic Science Association will be held from July 7-10 in Chicago, IL, USA. The meeting is being hosted by the University of Chicago and Purdue University.

Invited plenary speakers are Tore Ellingsen (Stockholm School of Business), (University of Bonn) and Stefano DellaVigna (University of California, Berkley). The program will also include many parallel sessions. In addition, the conference will feature a special panel session on field experiments in education, attended by researchers, policymakers and funding agencies. We look forward to welcoming you to Chicago at the Thursday evening welcome reception, which will be held at the renowned Art Institute of Chicago.

Key deadlines: abstract submissions are due on April 30, 2011; early registration cut-off is June 6, 2011. Submissions and registration will be handled through the ESA website (http://www.economicscience.org ).

For more information please see the conference website at http://economics.uchicago.edu/esa .

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Economic Psychology Association Karl-Erik Wärneryd

Toward the end of the nineteenth century, two forces were working in favor of applying scientific psychology to practical problems. First, there was an increasing demand from business and industry for getting help with problems of recruiting and employment of personnel. Big companies saw possibilities of becoming more profitable by reducing costs of failed recruitments and by better work training methods. They also sought help with the distribution of their products and services. The second factor of importance was the wish among some academic psychologists to test their new laboratory methods, apparatus and laboratory equipment on problems in practice, among other things because such work could more easily be financed than pure academic work. Such thinking was behind the establishing of the Economic Psychology Association in 1916 with the participation of some of the best-known US psychologists at the time, e.g. Hugo Münsterberg, Walter Bingham, Robert Woodworth, and Edward Thorndike (Buckley, 1989). The event was mentioned as a sign of progress in scientific psychology by the President of the American Psychological Association at the time Margareth Washburn. The interdisciplinary importance of the event was underlined when it was even announced in The American Economic Review :

The Economic Psychology Association, recently organized with headquarters in New York City (Professor H. L. Hollingsworth), represents an attempt to bring together in cooperative effort scientific investigators and men of industry, commerce, and administration. The association contemplates making more easily available to industry the methods and results of psychological investigation, through the means of conference, cooperative investigation, research fellowships, and the publication of the results of new studies in applied psychology. It also contemplates attempting to stimulate research work which will have direct and practical application to economic and industrial affairs, by bringing laboratory workers in closer touch with the actual problems. On the advisory council are listed a number of active psychological investigators and economists, and a number of prominent sales managers, advertising men, and superintendents of training. (‘Notes’, American Economic Review , 6(2). (Jun., 1916), pp. 512-21)

In the years 1916-1917 several meetings of the Association were arranged. The Figure here shows an ad in the New York Times inviting to a conference at Columbia University in 1917. While there was at the beginning support from a number of leading professors of psychology and business executives the participation of outstanding economists seem to have been low or even non-existent. The extension of psychological knowledge to business problems implied criticism of economic theory. It was the primary concern of professionals involved in management practice. The well-known management consultant Frank Gilbreth, for example, gave a lecture on

28 IAREP newsletter November 2010 motion studies of the handicapped in which he spoke in favor of more understanding of the conditions of the handicapped (Gilbreth and Gilbreth, 1920).

Conference on the Human Element

A joint Association Conference on the Human Element in Business will be held next Friday and Saturday at Schermerhorn Hall, Columbia University, under the auspices of the Economic Psychology Association. The ‘Cost of Hiring and Firing will also be discussed, as will various ways and means of increasing the productivity of the human element in business for the betterment of employees and employers. J. George Frederick, editor of Advertising and Selling, is the President of the Association, Arthur H. Marks of B.F. Goodrich Company and Professor R.S. Woodworth of Columbia are Vice Presidents, Professor H.L. Hollingworth of Columbia is the Treasurer, and John J. Apatow Executive Secretary. The New York Times January 21 1917

The Economic Psychology Association collapsed when psychologists like Walter V. Bingham and Hugo Münsterberg lost faith in it and left, distrusting the financial strivings of the founder Apatow (Buckley, 1989). Bingham who was for many years the leading US applied psychologist and professor at the Bureau of Salesmanship Research, Carnegie Institute of Technology, found applied research in his own agency and private consultancy more profitable.

References: Buckley, K.W. (1989), Mechanical Man: John Broadus Watson and the beginnings of Behaviorism , New York, NY: Guilford Press. Gilbreth, F.B. and L.M. Gilbreth (1920), Motion Study for the Handicapped , London: George Routledge & Sons, Ltd

Does anybody have more information about the Economic Psychology Association? If so, please let me know! [email protected] .

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New Book: “Economic-psychological modeling”, Saratov,

2010 Edited by Alexander Neverov and Vladimir Markov Alexander Neverov

“Economic-psychological modeling” is written in honor of Gvozdeva N.I., one of the first economic psychologists in Russia. The book was published in Saratov in November, 2010. One of the actual missions of modern economic psychology is to improve the tools of studying of social processes. At the last years it is conducted very active work on the use of psychological theories for economical models building and on development of experimental methods in economics. In the Center of psycho-economic research Saratov State socio-Economic University at Saratov science center Russian Academy of Sciences (CPER) the complex concept of economic psychology was worked up. This concept is the basis of developing of economic-psychological modeling methodology. “Economic-psychological modeling” is dedicated to the description of this process. The book includes next parts: 1. Psychology and economics: integrated way 2. Model, Virtualization and Mind 3. Modern tools of modeling: condition, problems and opportunities 4. Subjects of modeling psychology and economy 5. Methodology of economic-psychological modeling This is an important step forward in the improvement of communications between the psychology and economics.

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Special Issue of the Journal “Psychology and Economics” on Economic Psychology of Innovation Call for Papers Anastasia Neverova

Dear colleagues, We are announcing the call for papers for a special issue of the Journal “Psychology and Economics” devoted to Economic Psychology of innovation that will be published in June, 2011. The aim of the Journal “Psychology and Economics” (ISSN 2070-4437) is creation specialized platform for discussion problems, which touch on sphere of economic psychology, and also package treatment of psychological-economic aspects of social development. Interdisciplinary character are invoked to provide conditions for full value exchange of scientific achievement in sphere of modern economics and psychology, and also to reflect integration character of its development in Russia and overseas. The goal of the special issue is consideration of economic-psychological mechanisms of generation of innovation and features of its distribution, because innovation is very important part of modern economy. The journal publishes 2 issues per year (June – December), working languages are Russian and English. Interested researchers are encouraged to submit their papers to Neverova Anastasia, the Managing Editor of the Journal ( [email protected] )

For further information concerning writing style and sections of journal, please go to http://eng.psychecon.ru/zhurnal/informaciya_o_zhurnale.html

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International Research-to-Practice Conference “Economic psychology: Past, Present, Future” Saratov, Russia, October 2011 Gulnara Gubaydullina

The Conference will be organized by the Center of psycho-economic researches Saratov State socio-Economic University at Saratov science center Russian Academy of Sciences (CPER) in the October, 2011 on the basis of Saratov State socio-Economic University. The c onference’s goals are the consolidation of relations between representatives of economic and psychological sciences of Russia and the world centers in the sphere of Economic Psychology and Behavioral economics, exchange to experience and getting acquainted the participants with advanced or innovative researches (its matter, methodology and techniques) Russian and world science, determination aspects of further development of Economic Psychology on the basis to determine consolidation the economic, psychological and economy-psychological directions. Working languages of Conference are English and Russian. Preliminary general directions of conference: - Philosophical and methodological aspects of economic psychology - Economic psychology and behavioral economics: problems of integration - History of economic psychological researches - Economic psychology of innovation - Economic psychology and economical education - Economic psychology and human capital During the Conference expected to conduct the Round Table on “Actual problems of economic psychology” Center is inviting interested researchers to become co-organizers of this conference. The list of general direction is not the final. We will be glad any suggestions and additions.

For further information about the conference, please go to http://eng.psychecon.ru/center.html

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Any questions please submit to Alexander Neverov, Director of Center of psycho- economic researches ([email protected] ).

Social Sciences and Neuroscience: How Can They Inform Each Other? 2nd CISEPS Workshop Stefania Ottone

The scientific committee of CISEPS is very pleased to announce the 2010 CISEPS Annual Workshop on ‘Social Sciences and Neuroscience: How Can They Inform Each Other?’ that will be held in Milano - Bicocca on the 17 th of December 2010.

Social and biological approaches to human behaviour have traditionally been characterized by mutual distrust. This workshop will bring together scientists from different disciplines to discuss recent developments in the relationship between social sciences and neuroscience. The objective is to identify key areas for synergies and the most promising directions for future research.

PROGRAMME 09:00 Registration

09:30 Opening address

MORNING SESSION – Chair: Luca Stanca, University of Milano-Bicocca

09:45 David K. Levine , Washingthon University in St. Louis

10:30 Rosemarie Nagel , Universitat Pompeu Fabra

11:15 Coffee break

11:30 Jack Vromen , Erasmus University

12:15 Open discussion

13:00 Lunch

AFTERNOON SESSION – Chair: Riccardo Viale, University of Milano-Bicocca

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14:00 Riccardo Viale , University of Milano-Bicocca 14:45 Bernd Weber , University of Bonn

15:30 Coffee break

15:45 Alessandro Antonietti , Cattolica University

16:30 Open discussion

17:00 Conclusion

Organizing Committee : Stefania Ottone, CISEPS & EconomEtica, University of Milano-Bicocca Fabrizio Panebianco, CISEPS, University of Milano-Bicocca Luca Stanca, CISEPS, University of Milano-Bicocca Fabio Tufano, CISEPS, University of Milano-Bicocca

Contact : [email protected]

Behavioral Decision Making Conference in Israel, May 30th to June 1st, 2011 Itzhak Aharon and Orit Tykocinski

Keynote Speakers: Thomas Gilovich, Jack Levy, Paul Slovic, and John Payne. The conference will be held at IDC Herzliya Campus (just outside Tel Aviv), and will be hosted by the Lauder School of Government, Diplomacy and Strategy and the School of Psychology at IDC. For information, submissions, and registration: www.idc.ac.il/DMConference . Organization Committee: Alex Mintz, Orit Tykocinski, Dan Zakay, Varda Liberman, Shaha Ayal, and Gingi (Itzhak Aharon).

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