SFB 504: Glossary

General information

Glossary

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SFB glossary

In the Sonderforschungsbereich 504, researchers from different disciplines (social psychology, economics, and business administration) work together. The research program comprises the theoretical foundation, empirical analysis and economic application of behavior which cannot be described by standard expected utility theory. It is the purpose of this glossary to establish a common core of scientific concepts that are used in our research. These concepts might not be common to all disciplines, but we hope that the glossary forms a basis for communication between the different disciplines and projects involved in the SFB 504.

Research areas and basic concepts:
Social cognition and social judgement
Decision making
Behavior
Basic concepts of economics

Methods:
Econometrics and statistics
Experiments
Game theory

Applications:
Savings decisions over the life cycle
Financial markets and behavioral finance
Behavior in organizations
Auctions

Alphabetical list of entries

Acknowledgements

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Research areas and basic concepts

Social cognition and social judgement:
Abstractness – Accessibility – Anchoring and adjustment – Attitude – Automaticity – Availability – Availability heuristic – Base-rate fallacy – Bayes theorem – Category split effect – Centrality of typicality – Cognition – Cognitive dissonance – Debiasing strategies – Frame – Framing effect – Heuristic – Hindsight bias – Information processing – Lift – Logic of conversation – Natural sampling – Organization studies: cognitive – Personality – Personality psychology – Problem representation – Prospect theory – Prototype – Reflection effect – Representation – Representativeness heuristic – Retention of central tendencies – Schema – Script – Social cognition – Simpson paradox – Weighted attributes

Decision making:
Abstractness – Allais paradox – Ambiguity – Automaticity – Base-rate fallacy – Bayes theorem – Behavioral economics – Belief – Bounded rationality – Category split effect – Certainty effect – Cognitive dissonance theory – Decision strategies – Elimination by aspects – Equal weight strategy – Expected utility – Frame – Framing effect – Habit – Heuristic – Information – Intertemporal decision making – Lexicographic strategy – Lift – Natural sampling – Organizational learning – Preferences – Problem representation – Prototype – Rate of time preference – Rationalbehavior – Reference point – Reflection effect – Representation – Retirement decisions – Risk – Risk attitude – Risk aversion – Satisficing strategy – Standard operating procedures – Strategy – Uncertainty – Utility – Von Neuman-Morgenstern utility – Weighted attributes

Behavior:
Automaticity – Behavioral economics – Behavioral finance – Bounded rationality – Institutionalism – Organizational learning – Organization studies: behavioral – Overconfidence – Rational behavior – Standard operating procedures

Basic concepts of economics:
Allais paradox – Allocation – Arbitrage – Behavioral economics – Bounded rationality – Competitive market equilibrium – Consumption – Consumer demand – Consumer surplus – Econometrics – Efficiency – Efficient capital markets – Equilibrium – Expected utility – Externality – Incentive compatability – Income – Intertemporal decision making – Markets – Microeconomics – Pareto efficiency – Preferences – Prices – Rate of time preference – Rational behavior – Rents – Strategic equilibrium – Uncertainty – Utility – Von Neuman-Morgenstern utility

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Methods

Econometrics and statistics:
Econometrics – Identification – Selection problem

Experiments:
Between subjects design – Confounding variables – Control variable – Control group – Dependent variable – Experiment – Experimental design – Experimental group – Hypothesis – Independent variable – Mediator variable – Moderator variable – Objectivity – Random variables Reliability – Validity – Within subjects design

Game theory:
Bayes theorem – Bayes-Nash equilibrium – Belief – Cooperative game – Dominant strategy – Externality – Game theory – Incentive compatability – Information rents – Mixed strategy – Nash equilibrium – Non-cooperative game – Information – Information rents – Perfect Bayesian Nash equilibrium – Refinement – Revelation mechanism – Revelation principle – Sequential equilibrium – Strategy – Strategic equilibrium – Subgame perfect equilibrium – Type (of players)

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Applications

Savings decisions over the life cycle:
Consumption – Consumer demand – Household behavior – Income – Intertemporal decision making – Life-cycle hypothesis – Microeconomics – Retirement decisions – Saving

Financial markets and behavioral finance:
Arbitrage – Behavioral finance – Covered short call – Collar strategy – Efficient capital markets – Excess chance measures – Options and hedging – Put option – Shortfall risk measures – Target return

Behavior in organizations:
Automaticity – Frame – Institutionalism – Liability of newness – Obsolescence – Organizational learning – Organization studies: behavioral – Organization studies: cognitive – Problem representation – Representation – Script – Standard operating procedures

Auctions:
Auction – First-price auction – Procurement auction – Revenue equivalence – Second-price auction

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August 1, 1997 – last revised June 17, 1999
Direct questions and comments to: Glossary master
Currently, the glossary master is Joachim Winter