Elgar Encyclopedia of Behavioural and Experimental Economics

Edited by Swee-Hoon Chuah, Professor of Behavioural Economics, Robert Hoffmann, Professor of Behavioural Economics and Ananta Neelim, Senior Lecturer in Economics, Tasmanian Behavioural Lab, University of Tasmania, Australia

‘This Encyclopedia features contributions from renowned and emerging scholars worldwide. It provides a rich tapestry of perspectives from academic research, and also policy and practice. It brilliantly captures the diversity and depth of our field and makes complex concepts accessible and engaging. It will be an essential reference for researchers, practitioners and students.’

• ContentsForeword: Behavioural and experimental economics – complementary forces that will continue to change the world xivAcknowledgements xix1 Adaptive explanations to behavioural findings 1Lionel Page2 Affective relationships: role, dynamics, and modelling 4Frans van Winden3 Affirmative action 9Edwin Ip4 Allais paradox, certainty effect, and zero effect 13Elif Incekara-Hafalir and Jack Stecher5 Ambiguity and ambiguity attitudes 15Jayant Ganguli6 An historical definition of behavioural economics: old/new behavioural economics and its relationship to experimental economics 18Alexandre Truc7 Asset market experiments and price bubbles 22Daniel Q. Harper and Charles A. Holt8 Background risk and risk-tolerance 24Marc Willinger9 Bargaining and negotiation 27Daniel Read10 Behaviour and violent conflict exposure 31Enrique Fatas and Lina Restrepo-Plaza11 Behavioural approaches to oligopoly 34Henrik Orzen12 Behavioural business ethics 37Gari Walkowitz and Matthias Uhl13 Behavioural business: doing behavioural science in the business school 40Robert Hoffmann14 Behavioural cliometrics 44Ahmed Skali and Benno Torgler15 Behavioural cultural economics 47Bronwyn Coate and Robert Hoffmann16 Behavioural development economics 50Utteeyo Dasgupta and Pushkar Maitra17 Behavioural economic games to study trust and trustworthiness 53Ananish Chaudhuri18 Behavioural economics as a tool for exploring social dysfunction in personality disorder 56Haang Jeung-Maarse and Christiane Schwieren19 The behavioural economics of gambling 61Lisa Farrell20 The behavioural economics of political indoctrination 65Gigi Foster21 The behavioural economics of religion 68Loukas Balafoutas22 Behavioural ethics of Artificial Intelligence 72Bernd Irlenbusch, Nils Köbis and Rainer Michael Rilke 23 Behavioural ethics of technology 76Matthias Uhl and Gari Walkowitz24 Behavioural finance 79Sascha Füllbrunn and Sven Nolte25 Behavioural household economics 81Astrid Hopfensitz and Alistair Munro26 Behavioural insights in the private sector 84William Mailer27 Behavioural market design: an overview 88Axel Ockenfels and Alex Rees-Jones28 Behavioural monetary policy 91Michelle Baddeley29 Behavioural political economy 94Shaun P. Hargreaves Heap30 Behavioural public policy 96Chiara Varazzani and Cale Hubble31 Behavioural science in business 100Richard Chataway32 Belief elicitation 102Charles A. Holt and Angela M. Smith33 Beyond the absence of gains from trade 105Edward Halim and Yohanes E. Riyanto34 Big robber game 109Carlos Alós-Ferrer35 Bounded rationality versus the heuristics and biases/nudging approaches to behavioural economics 112Morris Altman36 Bringing behavioural science to compliance 116Christian Hunt37 Can physical attributes predict human behaviour? 118Brit Grosskopf38 Choice bracketing 122Daniel Read and Richard Mills39 Complexity and behavioural economics: exploring dynamic systems and adaptive agents 126Steve J. Bickley and Benno Torgler40 Coordination and focal points 131Andrea Isoni41 Deadlines and procrastination 134Stephen Knowles and Maroš �Servátka42 Decision-making for others 136Sascha Füllbrunn and Wolfgang J. Luhan43 Decisions from experience 139Christoph K. Becker and Stefan T. Trautmann44 Differential behavioural economics: how individual differences affect economic behaviour and outcomes 142Robert Hoffmann45 Dual processes 149Carlos Alós-Ferrer46 Ecological rationality: rethinking behavioural economics 153Gerd Gigerenzer47 Economic behaviour of children and adolescents 156Matthias Sutter and Claudia Zoller48 Economic behaviour under stress 164Christiane Schwieren49 Emotions in economics 169Charles N. Noussair 50 Employee assessments using behavioural economic games 172Antonio M. Espín51 Engineering cooperation: the behavioral design of reputation systems 174Gary Bolton, Ben Greiner and Axel Ockenfels52 Environmental regulations and compliance 177Timothy N. Cason, Lana Friesen and Lata Gangadharan53 The ethics of nudging 180Rufus Black54 Evolutionary psychology, preferences, and utility 182Mónica Capra55 Experimental analysis of antitrust issues 185Charles A. Holt and Sean Sullivan56 Experimental economics in immersive virtual environments 187Özgür Gürerk, Lucas Braun and Bernd Irlenbusch57 Experimental economics of culture 191Swee-Hoon Chuah and Robert Hoffmann58 Experimental finance 196Sascha Füllbrunn and Stefan Palan59 Experimental market design for altruistic supply 198Mengling Li and Yohanes E. Riyanto60 Experimenter demand effects 202Daniel John Zizzo61 Experiments on directed search 205Nick Feltovich and Nejat Anbarci62 Experimetrics 210Peter G. Moffatt63 Focal points in bilateral bargaining situations: some experimental findings 213Anders Poulsen64 Future design 218Tatsuyoshi Saijo65 Gender and (inaccurate) beliefs 220Nisvan Erkal and Boon Han Koh66 Gender and leadership: evidence from experiments 223Catherine Eckel, Lata Gangadharan, Philip J. Grossman and Nina Xue67 Gender differences in preferences 227Christian Thöni and Stefan Volk68 The gender gap in self-promotion behaviour 231Julio Mancuso Tradenta, Ananta Neelim and Joe Vecci69 Heuristics 234Omid Ghasemi and Ben R. Newell70 Honesty and lie aversion 237Marie Claire Villeval71 How non-cognitive skills influence entrepreneurial behaviour 239Alexander Kritikos72 In-group bias 243Shaun P. Hargreaves Heap73 Income inequality and cooperative behaviour 246Michalis Drouvelis74 Infinitely repeated games 249Teresa Backhaus and Yves Breitmoser75 Inflationary psychology 253Meg Elkins76 Informal agreements 256Martin Dufwenberg 77 Intersectional discrimination 258Luis Artavia-Mora, Enrique Fatas and Paulius Yamin78 Intransitive preferences 261David J. Butler79 Intuition 264Omid Ghasemi and Ben R. Newell80 The Keynesian beauty contest experiments 267Rosemarie Nagel81 Krupka-Weber norm elicitation method: a review 270Erin L. Krupka and Roberto A. Weber82 Learning in social networks 274Friederike Mengel83 Legislative bargaining experiments 278Maria Montero84 Level-k and cognitive hierarchy models 283Rosemarie Nagel85 Loss aversion 287Taisuke Imai and Klaus M. Schmidt86 The Love Principle 291Paul Frijters and Gigi Foster87 Markets and morals: inroads from experiments 295Aaron Nicholas88 Meta-analysis in behavioural and experimental economics 298Tom Lane89 The methodology of behavioural economics 301Swee-Hoon Chuah, Robert Hoffmann and Ananta Neelim90 Money burning games 309Daniel John Zizzo91 Motivated beliefs 312Nina Xue and Xiaojian Zhao92 Multiple selves instead of intra-personal payoff aggregation 316Werner Gueth, Joyce Kaeser and Maxie Schulze93 Neural correlates of strategic thinking in the p-beauty contest game 319Giorgio Coricelli and Rosemarie Nagel94 Norm-nudging: harnessing social expectations for behaviour change 322Cristina Bicchieri and Eugen Dimant95 Peer effects 326Marie Claire Villeval96 Personality 328Maria Cubel and Santiago Sanchez-Pages97 Perverse social norms 332Ahmed Skali, Benno Torgler and Erez Yoeli98 Political ideology through the lens of behavioural economics 335Kyle Fischer, Quentin D. Atkinson and Ananish Chaudhuri99 Psychological game theory 339Pierpaolo Battigalli and Martin Dufwenberg100 Quantal response equilibrium and behavioural game theory 341Charles A. Holt and Thomas R. Palfrey101 Reciprocal responses to acts of commission vs acts of omission 345James C. Cox, Maroš �Servátka and Radovan Vadovič102 Reciprocity 347Urs Fischbacher103 Rent seeking experiments 350Charles A. Holt and Angela M. Smith104 Response times 353Carlos Alós-Ferrer 105 Risk preference elicitation and gender 357Charles A. Holt106 Self-control 359Agnieszka Tymula and Xueting Wang107 Spite in the lab 363Benedikt Herrmann108 Sports as a mirror of society: a behavioural economics laboratory 367Steve J. Bickley and Benno Torgler109 Statistical and substantive significance and behavioural economics 371Morris Altman110 Status quo and acts of commission vs acts of omission 376James C. Cox, Maroš �Servátka and Radovan Vadovič111 Stochastic choice 379Carlos Alós-Ferrer112 Tax experiments 382Erich Kirchler113 Tax morale 386Benno Torgler114 Taxonomies of nudging 390Adrian R. Camilleri115 A theory of decision points 392Dilip Soman116 Thomas Schelling’s contribution to behavioural economics 394Robert Sugden117 The use of behavioural experiments in economics teaching 396Humberto Llavador118 Voting and elections 401Christoph Vanberg119 Warm glow 405R. Andrew Luccasen, III120 WELLBY 408Paul Frijters and Christian Krekel121 Why smart people can make poor health choices 411Hannah Altman and Morris Altman122 X-inefficiency, efficiency wages, and a behavioural theory of the firm 416Morris AltmanIndex 420