Constructivist and Ecological Rationality in Economics

When we leave our closet, and engage in the common affairs of life, (reason's) conclusions seem to vanish, like the phantoms of the night on the appearance of the morning; and 'tis difficult for us to retain even that conviction, which we had attained with difficulty (Hume, 1739/, p 507). we must constantly adjust our lives, our thoughts and our emotions, in order to live simultaneously within different kinds of orders according to different rules. If we were to apply the unmodified, uncurbed rules (of caring intervention to do visible 'good') of the small band or troop, or our families to the (extended order of cooperation through markets), as our instincts and sentimental yearnings often make us wish to do, we would destroy it. Yet if we were to always apply the (noncooperative) rules of the extended order to our more intimate groupings, we would crush them. (Hayek, 1988, p 18). (Italics are his, parenthetical reductions are mine).behavioral economics; experimental economics

Social Preferences and the Third Sector: Looking for a Microeconomic Foundation of the Local Development Path

The aim of the paper is to endorse the principle, recurrent in non-profit literature, that the third sector is an institution that supports the development process of economic systems. The third sector is considered as an institution that âÃÂÃÂfavors, transmits and cementsâÃÂàthe role of social preferences in a given economy and, in this way, it contributes to development. The paper thus considers two stances taken up in economic theory: (i) the theory of social preferences; (ii) the modern theory of development. These two stances do not exclusively and specifically refer to the third sector, and they generally follow parallel paths, rarely being aware of each other: in the paper, the third sector is assumed to form a bridge between them in that social preferences are supposed to be one of the driving forces in the change process of an economy.endogenous social preferences; third sector; local development

Culture Sometimes Matters: Intra-cultural Variation in Pro-social Behavior Among Tsimane Amerindians

Agent-centered models usually consider only individual-level variables in calculations of economic costs and benefits. There has been little consideration of social or cultural history on shaping payoffs in ways that impact decisions. To examine the role of local expectations on economic behavior, we explore whether village affiliation accounts for the variation in dictator game offers among the Tsimane of the Bolivian Amazon independently of other factors that could confound such an effect. Our analysis shows that significant differences in altruistic giving exist among villages, village patterns are recognized by residents, and offers likely reflect variation in social expectations rather than stable differences in norms of fairness

Strategic decision modeling in Brownfield redevelopment

De ruimtelijke planning en het herstructureringsproces van bedrijventerreinen zijn onlangs aan enkele belangrijke veranderingen onderhevig geweest. Ten eerste is de omvang van de ruimtelijke herstructureringsprojecten toegenomen. Ten tweede zijn de traditionele lineaire planningsprocessen vervangen door publiek-private samenwerkingen waarbinnen de rollen en de onderlinge afhankelijkheid van ontwikkelaars en overheidsorganen gewijzigd zijn. Binnen deze nieuwe kaders is de herstructurering van brownfields veelal problematisch; er treden veel conflicten op tijdens planprocessen. In dit onderzoek wordt beargumenteerd dat het gebrek aan consensus onder betrokken stakeholders een belangrijke oorzaak is van de optredende stagnatie binnen brownfield herstructureringsprocessen. Het uiteindelijke doel van dit onderzoek is het voorspellen en analyseren van het optreden van conflicten in herstructureringsprocessen, alsmede het doen van aanbevelingen over optimale publiek-private samenwerkingsovereenkomsten voor de herstructurering van brownfields. Om dit doel te verwezenlijken is er een onderzoekskader opgesteld, welke is gericht op het specificeren en analyseren van: (1) de attributen van een brownfield; (2) de voorkeuren van de groepen van actoren; en (3) de kenmerken in het onderhandelingsproces tussen de twee groepen van actoren. Voor het verzamelen van noodzakelijke data zijn er twee online enquêtes gehouden. In beide gevallen waren de geënquêteerden experts binnen een specifieke tak van gebiedsontwikkeling. Voor dit onderzoek zijn verschillende methoden gebruikt. Ten eerste is de Fuzzy Delphi methode gebruikt om brownfield attributen te structureren en te prioriteren. Stated Choice experimenten verschaffen vervolgens het inzicht in de individuele voorkeuren van verschillende actor-groepen. Deze resulterende nutsfuncties zijn uiteindelijk gebruikt als de input voor de analyse van multi-actor besluitvorming, waarvoor de methode Game Theory is gebruikt. De resultaten van het besluitvormingsproces hangen niet alleen af van een individuele keuze maar ze bevatten ook de invloed van de keuzes van een tegenspeler. Het vinden van mogelijke consensusrijke strategieën in de onderhandelingen over de herstructurering van brownfields is het doel van deze laatste stap. Tot op heden is er weinig onderzoek verricht naar de ontwikkeling van besluitvormingsmodellen waarin systematisch de kenmerken van de brownfieldterreinen en de herstructureringsplannen verbonden wordt met het gedrag van de betrokken actoren; een dergelijke verbinding kan inzicht geven in mogelijke bronnen van conflicten. Dit onderzoek draagt bij aan de ontwikkeling van modellen waarin de interactie tussen verschillende actoren binnen een complex probleemgebied wordt geanalyseerd. De resultaten van dit onderzoek ondersteunen besluitvormers en procesmanagers bij het vinden van een optimale overeenkomst in de publiek-private onderhandelingen omtrent de herstructurering van brownfields

Luonnon monimuotoisuuteen liittyvät neuvottelut kaupunkisuunnittelussa: Roolipeli

The need to develop and expand urban areas is increasing in most countries, but urbanization also increases the threat for global biodiversity. Some cities have acknowledged this challenge and formed strategies and action plans for biodiversity preservation. How can we ensure that such strategies are realized in city planning? Negotiations are a crucial part of urban planning, and therefore can be a leverage point of intervention to effectively implement strategies to pro-tect biodiversity. However, little is known about the dynamics of the actual negotiation process in city planning. I applied a game theoretic approach to study how information availability influences the suc-cess and efficiency of negotiations. A role-playing game was used to simulate a negotiation on specific measures to preserve biodiversity in a residential building project. Eleven urban devel-opment specialists played the game with different sets of information. In addition to the direct outcomes of the negotiation, I analysed the post hoc discussion and arguments used to gain in-sights into perceptions of biodiversity-related negotiations in urban planning. Results indicate that information availability can increase the efficiency of negotiations. Partici-pants favour principled and integrative negotiation, but incomplete information seems to push them to take a more positional stance. The post hoc discussion also reveals some issues rele-vant to the design of urban planning process for biodiversity. The overall results suggest that a simple game-theoretic framework, implemented in (a) game-like simulation with quasi-experimental control and (b) qualitative analysis of discussions, holds potential for both under-standing (i) how decision makers frame and resolve the negotiation with conflicting interests and (ii) how to design efficient administrative processes taking into account not only the partic-ipants’ preferences but also wider public interests, such as biodiversity preservation

Altruism and social integration

We develop a two-stage experimental protocol by which i) we elicit the social network within a group of undergraduate students and ii) we measure their altruistic attitudes by way of a standard Dictator game. We observe that more socially integrated subjects are also more altruistic, as betweenness centrality and reciprocal degree are positively correlated with the level of giving, even after controlling for the effect of social distance, which has been shown to affect giving. Our findings suggest that social distance and network position are complementary determinants of altruistic behavior