Risky Choice and the Construction of Preferences

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Axel Ockenfels

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Abdolkarim Sadrieh

Editors

The Selten School of Behavioral Economics A Collection of Essays in Honor of Reinhard Selten

Editors Prof. Dr. Axel Ockenfels University of Cologne Staatswissenschaftliches Seminar Albertus-Magnus-Platz 50923 Cologne Germany [email protected]

Prof. Dr. Abdolkarim Sadrieh University of Magdeburg Department of Economics Universita¨tsplatz 2 39106 Magdeburg Germany [email protected]

ISBN 978-3-642-13982-6 e-ISBN 978-3-642-13983-3 DOI 10.1007/978-3-642-13983-3 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010935444 # Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Preface

Nevertheless I still nourish the hope that some of the students who now work on experimental economics under my guidance will become university teachers. Reinhard Selten (1995): Autobiography. Tore Fra¨ngsmyr (ed.): Les Prix Nobel. The Nobel Prizes 1994, Stockholm: Nobel Foundation.

Reinhard Selten, to date the only German Nobel Prize laureate in economics, celebrates his 80th birthday on October 5, 2010. For more than half a century he has contributed to economic research, inseminating various areas in microeconomics, especially game theory and behavioral economics, as well as various neighboring disciplines. While his contributions to game theory are well-known, the behavioral side of his scientific work has received less public exposure, even though he has been committed to experimental research during his entire career, publishing more experimental than theoretical papers in top-tier journals. This Festschrift is dedicated to Reinhard Selten’s exceptional influence on behavioral and experimental economics. Throughout his academic career, Reinhard Selten advised and supported many young economists, both in game theory and experimental economics. While in the early years of his career, many of the game theorists he supported proceeded to be successful academics, his Ph.D. students in experimental economics often left academia for successful business careers. One reason probably

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