Stanford Institute for Theoretical Economics

Summer 2012 Workshop



Segment 6: Psychology and Economics, 10.0

September 28, 29 and 30, 2012

Organized by  Vincent Crawford, University of Oxford and University of California, San Diego; David Laibson, Harvard University; Ulrike Malmendier, University of California, Berkeley; John Beshears, Graduate School of Business, Stanford University and B. Douglas Bernheim, Stanford University.



The session will meet in Room 140 in Landau Economics Building.

The entrance to Econ 140 is from the courtyard.

Here is the map to the building.


Friday, September 28, 2012

9.00-9.30 Breakfast

9.30-9.45 Welcome by B. Douglas Bernheim, Stanford University

9.45-10.10 Financial Illiteracy and Pension Contributions: A Field Experiment on Compound Interest in China presented by Changcheng Song, National University of Singapore

10.10-10.45 Learning from Inflation Experiences presented by Ulrike Malmendier, University of California, Berkeley and co-authored with Stefan Nagel, Graduate School of Business, Stanford University

10.45-11.20 Coffee

11.20-11.55 Great Expectations and Prosocial Acts: Theory and Experiments presented by Dmitry Taubinsky, Harvard University

11.55-12.30 Understanding Peer Effects in Financial Decisions: Evidence from a Field Experiment presented by Leonardo Bursztyn, Anderson School of Management, University of California, Los Angeles and co-authored with Florian Ederer, also Anderson School of Management, University of California, Los Angeles; Bruno Ferman, Massachusetts Institute of Technology and Noam Yuchtman, Haas School of Business, University of California, Berkeley

12.30-2.00 Lunchtime discussion

2.00-2.35 Learning through Noticing: Theory and Experimental Evidence in Farming presented by Joshua Schwartzstein, Dartmouth College and co-authored with Rema Hanna and Sendhil Mullainathan, both Harvard University

2.35-3.10 Behavioral Competitive Equilibrium and Extreme Prices presented by Tomasz Strzalecki, Harvard University and co-authored with Faruk Gul and Wolfgang Pesendorfer, both Princeton University

3.10-3.40 Coffee

3.40-4.15 Beyond Happiness and Satisfaction: Toward Well-Being Indices Based on Stated Preference presented by Ori Heffetz, Cornell University and co-authored with Daniel J. Benjamin and Nichole Szembrot, both Cornell University, and Miles S. Kimball, University of Michigan

4.15-4.50 Selling Substitute Goods to Loss-Averse Consumers: Limited Availability, Bargains and Rip-offs presented by Antonio Rosato, University of California, Berkeley

4.50-5.25 Active vs. Passive Decisions and Crowd-out in Retirement Savings: Evidence from Denmark presented by Raj Chetty, Harvard University and co-authored with John N. Friedman, also Harvard University; Soren Leth-Petersen and Torben Nielsen, both University of Copenhagen and SFI

7.00 Continued discussion and dissemination of technical knowledge during dinner


Saturday, September 29, 2012

9.00-9.30 Breakfast

9.30-10.05 Morals and Markets presented by Armin Falk and Nora Szech, both University of Bonn

10.05-10.40 Do Customers Learn from Experience? Evidence from Retail Banking presented by Itai Ater, Tel Aviv University and co-authored with Vardit Landsman, also Tel Aviv University

10.40-11.10 Coffee

11.10-11.45 Optimal Revelation of Life-Changing Information presented by Nora Szech, University of Bonn and co-authored with Nikolaus Schweizer, Institute for Applied Mathematics, University of Bonn

11.45-12.20 Bad Boys: The Effect of Criminal Identity on Norm Violation presented by Michel André Maréchal, University of Zürich and co-authored with Alain Cohn, also University of Zürich

12.20-12.55 Reference Dependence and Labor-Market Fluctuations presented by Kfir Eliaz,  Brown University and co-authored with Ran Spiegler, Tel Aviv University and University College London

12.55-2.15 Lunchtime discussion

2.15-3.15 Salience and Consumer Choice Keynote Address by Andrei Shleifer, Harvard University. Paper co-authored with Pedro Bordalo, Royal Holloway and Nicola Gennaioli, CREI and Universitat Pompeu Fabra

3.15-3.45 Coffee

3.45-4.20 Coordination Under Limited Depth of Reasoning presented by Terri Kneeland, University of British Columbia

4.20-4.55 Base-Rate Neglect: Model and Applications presented by Aaron Bodoh-Creed, Cornell University and co-authored with Daniel J. Benjamin, also Cornell University and Matthew Rabin, University of California, Berkeley

4.55-5.30 A Sparsity-Based Model of Bounded Rationality, Applied to Basic Consumer and Equilibrium Theory presented by Xavier Gabaix, Stern School of Business, New York University

7.00 Continued discussion and dissemination of technical knowledge during dinner


Sunday, September 30, 2012

9.00-9.30 Breakfast

9.30-10.05 Let's Talk: How Communication Affects Contract Design presented by Gary Charness, University of California at Santa Barbara and co-authored with Jordi Brandts, Universitat Autònoma de Barcelona and Matthew Ellman, Institut d’Anàlisi Econòmica (CSIC) and Barcelona GSE

10.05-10.40 Optimal Contracts for Loss Averse Consumers presented by Juan Carlos Carbajal, University of Queensland and co-authored with Jeffrey C. Ely, Northwestern University

10.40-11.10 Coffee

11.10-11.45 Nominal Wage Rigidity in Village Labor Markets presented by Supreet Kaur, Columbia University

11.45-12.20 A Welfare Criterion for Models with Distorted Beliefs presented by Alp Simsek, Harvard University and co-authored with Markus K. Brunnermeier and Wei Xiong, both Princeton University

12.20-12.55 Poverty and Self-Control presented by B. Douglas Bernheim, Stanford University

12:55 Box Lunch



SITE is funded by grants from the National Science Foundation and the Stanford Institute for Economic Policy Research (SIEPR). SITE receives additional financial support from the Department of Economics at Stanford University, which also houses its offices.