The Sabe Newsletter
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THE SABE NEWSLETTER THE SOCIETY FOR THE ADVANCEMENT OF BEHAVIORAL ECONOMICS Statement of Purpose SABE is an association of scholars who are committed to rigorous economic analysis and are interested in learning how other disciplines – for example, psychology, sociology, anthropology, history, political science, and biology - further our understanding of economic behavior. An important function of SABE is to serve as a forum for research which may not find either comprehension or acceptance in conventional economics societies. SABE also aims at facilitating communication between economists and scholars trained in related disciplines. Vol. 12, No. 1 Spring 2004 Editor: Simon James School of Business and Economics, University of Exeter, Streatham Court, Exeter EX4 4PU United Kingdom Contributions for the next issue are very welcome – email: [email protected] Newsletter Contents Shlomo Maital, President Elect 2 SABE/IAREP 2004 Conference 2 IAREP 2005 Conference in Prague 17 Behavioral Economics Handbook 18 The Journal of Socio-Economics 19 Hugh Schwartz – latest book 19 Books of Interest 19 SABE Officers and Board 22 The Newsletter and Mailing List If you have a change of email or regular mail address please e-mail Nancy Rekart at [email protected] or send her a note – to Nancy Rekart, Office Supervisor, 102 Filley Hall, University of Nebraska-Lincoln, NE 68583-0922, USA. 1 Shlomo Maital, President Elect Following nomination by the nominations committee chaired by Gary Lynne and an electronic ballot, Shlomo Maital is confirmed as President Elect, SABE. Congratulations! Society for the Advancement of Behavioral Economics (SABE) / International Association for Research in Economic Psychology (IAREP) 2004 Joint Meeting Drexel University, Philadelphia, PA, USA July 15 - July 18, 2004 Theme: “Cross-Fertilization Between Economics and Psychology” The psychological influence on economics can be found in the development of mainstream economics, such as “self-interest” dictates decision-making (Adam Smith), utility based on the human emotion of happiness (Jeremy Bentham), “animal spirit” driving volatile investment behavior (John Maynard Keynes), “rational expectations” rendering public policy ineffective (Robert Lucas), to name just a few. Although the position of the rational choice model in contemporary economics has seemed to be unshakable, a challenge to that model has been emerging. In 1978 the importance of behavioral economics was first recognized officially by the granting of the Nobel Prize to Herbert Simon for conceptualizing bounded rationality and has garnered more attention recently. Thus it is not surprising that the 2001 John Bates Clark Medal was awarded to Matthew Rabin, a behavioral economist. It is encouraging that Daniel Kahneman, a psychologist who introduced the concepts of preference reversal and framing, along with Vernon Smith, a pioneering experimental economist, obtained the Nobel Prize in 2002 for their accomplishments in enhancing behavioral economics. It is time for scholars in the social sciences who are interested in the development of economic psychology, behavioral economics, experimental economics and game theory to get together to foster cross-fertilization between economics and psychology in order to enrich the broader field of social science. The European and North American associations most concerned with these developments welcome colleagues from the rest of the world to convene in Philadelphia in 2004 in order to explore further the continuing collaboration of research that draws on both economic and psychological perspectives. Conference Website: http://www.lebow.drexel.edu/sabe-iarep Highlights of the Conference: • Keynote speakers will be Vernon Smith, Nobel Laureate in 2002 for his pioneering work in experimental economics, and Paul Slovic, an internationally prominent economic psychologist known for his research in risk management. Vernon Smith will give the first-ever Herbert Simon Memorial Lecture (established by SABE), while Paul Slovic will give the first Daniel Kahneman Lecture (established by IAREP). 2 • A plenary section will be offered to discuss the behavioral approach to public policy issues. • An evening cruise on Delaware River provided by the Spirit of Philadelphia includes a buffet dinner, three-hour live entertaining, DJ and dance floor. A cash bar is served on board. • A reception will be hosted by Dean George Tsetsekos of Drexel University. • There will be 142 papers presented in 41 regular sessions and 2 poster sessions in the two and one-half day conference. Conference Hotel Arrangements: Conference participants are expected to make their own arrangements and pay for hotels at the following hotels. Please identify yourself as members of SABE or IAREP for a discount rate: 1. Hilton Inn at Penn, 3600 Samson Street, Philadelphia, PA, 19104 (located near the conference site). Toll free reservation number: 1-800-Hiltons (or local number: 215-222-0200 ). Fax: 215-222-4600. Basic room rate: $115.00 per night plus 14% taxes. Check-in time: after 3pm. Checkout time: by noon. 2. Sheraton University, 36 th and Chestnut Street, Philadelphia, PA, 19104 (located near the conference site). Toll free reservation number: 877-459-1146 (or regular number: 215-387-8000). Fax: 215-387- 7920. Basic room rate: $99.00 per night plus 14% taxes. Check-in time: after 3pm. Checkout time: before noon. 3. Penn Tower Hotel, Civic Center Boulevard at 34th Street, Philadelphia, PA 19104-4385 (located near the conference site). Reservation number: 215-387-8333. Fax: 215.386.8306. Basic room rate: $125.00 per night plus 14% taxes. Check-in time: after 3pm. Checkout time: by noon. 4. Holiday Inn Express Midtown, 1305 Walnut Street, Philadelphia, PA, 19107 (located in the downtown area, 13 blocks from the conference site). Reservation number: 215-735-9300, Fax: 215-732-2593. Email: [email protected] . Basic room rate: $92.00 per night plus 14% taxes. Check-in time: after 3pm. Checkout time: 1pm. Taxis and subway can provide transportation to and from the conference site. 5. Student housing at Drexel University is available at the following rate: Traditional Dorm Suite Style Double Room $28 $35 Single Room $34 $41 3 The Housing Reservation Form may be downloaded here. Please fill it out completely and send to the address designated in the form. The deadline for the Student Housing reservation will be June 26, 2004. Contact Person: For more information, contact the organizer of the conference: Bijou Yang Lester Department of Economics & International Business Drexel University 32 nd & Market Street, 11-501 Philadelphia, PA 19104 Tel: 215-895-6973 Fax: 215-895-6975 ________________________________________________________________________ CONFERENCE PROGRAM Thursday, July 15 Thursday,2:00-3:30pm SABE Board Meeting Thursday, 3:30-5:00pm IAREP Board Meeting Thursday, 3:00-5:00pm Registration (Pearlstein Center, Drexel University) Friday, July 16, 2004 Friday, 7:30-8:30am Continental Breakfast and Registration 4 Friday, 8:30-10:00am Introduction The Daniel Kahneman Lecture: Paul Slovic, University of Oregon Title: Affect, Reason, Risk, and Rationality Friday, 10:00-10:15am Break Friday, 10:15-11:45am Session A1: Foundations 1 - Chair: David George 1. What is Behavioral Economics? by John F. Tomer 2. Introspection, by David George 3. The Use of the Words Intuition, and Intuitive (and Some Synonyms) in Economic Literature, by Roger Frantz Session A2: How much can (economic) agents know – Chair: Paul Ormerod 1. Information extraction in complex economic systems, by Rich Colbaugh and Kristin Glass 2. Impact of topology on networked economic system dynamics, by Matt Gaston 3. How much can firms know? by Paul Ormerod and Bridget Rosewell 4. A Method for Inferring Decision Thresholds: Examples from Complex Decision Environments, by C. Gustav Lundberg and Brian M. Nagle Session A3: Consumer Behavior - Chair: Simon James 1. Continuous gambling as a consumer commodity, by Bartlomiej Dzik 2. Symmetric beliefs, irrational exuberance and household consumption behavior, by Joshy Easaw and Atanu Ghoshray 3. Mental accounting principles in the metaeconomics: consumer’s decisions with others- interest, by Natalia Ovchinnikova 4. Heterogeneity in belief structures regarding cultural consumption: A case study on the reading of fiction, by Daan van Bel Session A4: Experiments and Games - Chair: Kurtis Swope 1. Personality, rationality, and fairness in bilateral bargaining, by Pamela Schmitt and Kurtis Swope, John Cadigan 2. Credible signaling as a mechanism for maintaining cooperation: Evidence from real-time trust dilemmas, by Ryan O. Murphy, Amnon Rapoport, and J. Neil Bearden 5 3. Minimum effort incentives in team production, by Enrique Fatas, and Tibor Neugebauer, Javier Perote 4. Productivity and overcrowding in tournaments: An experimental analysis, by Donald Vandegrift and Abdullah Yavas, Paul M. Brown Session A5: The Paradoxes of Happiness in Economics – Chair: Charlotte Phelps 1. Can happiness research contribute to development economics? by Carol Graham 2. Is happiness shared doubled and sadness shared halved?: social influence on enjoyment of pleasant and unpleasant consumption experiences, by Rajagopal Raghunathan and Kim Corfman 3. Symbolic meaning of money and satisfaction with life, by Ekaterina Uglanova Friday, 11:45am-1:15pm Lunch Friday, 1:15-2:45pm Session B1: Rational Action - Chair: Mark Pingle 1. Deliberation cost: A foundation for Behavioral Economics, by Mark Pingle 2. The generalized secretary problem: