INDEX

Abortion of female fetuses, 151

Academic competitiveness

    leading to fraudulent actions, 235–236

    ostentatious behavior, bragging, 175

    women compared to men, 130

Act rationality, 56–57, 67, 197

Adams, Benjamin, xiii

Affirmative action, 131, 133

Age differences within couples, 137–138

Al Jazeera News, 19–20

Al-Quds University, 73–74, 77

Altruism

    genetic-level evolutionary explanation, 102–106

    as moral principal of aiding others, 100–102

    as rational within evolutionary definition, xvii–xviii

    See also Generosity

Amygdalae, 22

Anger

    benefits and negative effects, 219

    enables credible commitment, 6–7, 219

    importance of control, 227

    sharpens distinctions between claims in disputes, x

Angola, 62–64

Animals

    collective emotions, 90–92

    generosity exhibited, 90–92, 100–102

    risk attitudes, 169–170

    sexual behavior, 121–122

Arabian babbler bird. See Babblers

Ariely, Dan, xi, 112

Aristotle, 219, 227

Arithmetic of emotions, 168–171, 185

Arranged marriages and dowries in India, 149–151

Arrogant behavior, 176–177

Arrow, Kenneth, 178

Artistic experiences as emotional and cognitive phenomena, 89, 161–163, 164

Asexual reproduction, 145, 147

Atalia (author’s wife), 82–85

Attractiveness

    as culturally specific, 138

    and differences in self-assessments, 187–188

    and extramarital affairs, 128–130

    of males to females using handicap principle, 124

Auction fever, 225, 227

Auctions and winner’s curse phenomenon, 223–227

Aumann, Robert, 33, 40, 42–43, 56, 67

Australia, 220

Authenticity for effective rational emotions, 18–20

Autism spectrum disorder

    deficit of oxytocin, 118

    lack of empathy and ToM, 29–30

    smaller amounts of vasopressin, 230

Automatons, 45–50

Autonomous emotions, 4–5

AVPR1a, 230

Babblers (Arabian babbler birds), 100–101, 102

Bach, Johann Sebastian, 162

Bank employees peer effects example, 210–211

Barber, Brad, 182

Bargaining

    leverage, 6

    positions for women within relationships, 158

    as rational choices, xvi

    with tactics of rational emotions, commitment, 8–9

Bargaining theory, 5

Bar-Hillel, Maya, 198–199

“Battle at Kruger” YouTube video, 90–92

Battle between the sexes game, 34

Bayes’s Rule, 183–185, 192

A Beautiful Mind film, 33

Becker, Gary, 152–159

Bees, 67–68, 104, 123–124, 142

Behavioral Insight Team, xi

Behavioral traits

    credibility fostering trust, 62

    genetic components, 106, 231

    helping others, 101

    linked to testosterone, 135

    risk-taking by men, 136

    in trust games, 79–80

Blushing, evolutionary advantages and negative effects, 220–221

Bonuses offered as incentives, 205–209, 213–215

Bornstein, Gary, 89

Brain activity related to emotions

    of auction participants, 227

    as economic decisions are made, 57

    and emotional control, 7

    exhibiting empathy, 28–29

    feelings of regret, 222–223

    reactions to social ostracism and threats of danger, 101

Brekke, Kjell Arne, 177

Britain, 22–23, 70, 223–224

Brizendine, Luann, 139–140

Buffet, Warren, 188

Center for the Study of Rationality, Hebrew University of Jerusalem, xii, xiii, 19, 20, 24, 25

Changing environments, 54–55, 109

Cheating, 127–130, 168

Children

    with demand/withdrawal patterns with parents, 141

    exhibit empathy arising from emotional mirror cells, 28–29

    facial features, personalities, preserved through adulthood, 228–229

    field experiments on monetary incentives, 111–112

    infant-mother empathy from oxytocin, 230

    infants laughing at surprises, 163

    risk taking by male and female youths, 135

    women’s childrearing, from evolutionary perspective, 121, 123, 126–127

Chimpanzees, as research subjects, 28, 52–53

China, 151

Chinese game players, 79–80

Cholent story, 113–114

Clergy, 175

Cognitive/analytical thinking

    compared to speed of emotional responses, 38

    complemented, balanced, by emotions, 237–238

    control of, compared to physical sensations, xx

    and emotional responses of artistic experiences, 161–162

    scientific explanations, 234

    winner’s curse explained, 224–225

Cohen, Raymond, 77–78

Collective emotions

    introduced, 88–89

    among animals, birds, 90–92

    as collectively rational, 97

    created by, influencing, sports teams, 94–96

    needed more by men than women, 95–96

    as rewards for teams, 215

    strengthened by group identification, emergency conditions, 91–94, 196

Collective insults, 96–97

Collectivism versus individualism, 77

College drop-outs, 103

Commitments created by emotions

    introduced, 5

    anger, 219

    as credible, 7–8

    love expressed, 122–123, 126

    and multiple sexual partners, 125–126

    See also Self-commitment

Communes, 101

Competitiveness

    of auction environment, 225

    despised in times of crisis, 86

    gives evolutionary advantages to males, 134

    of Israelis, 80–81

    with overconfidence as advantage, 186

    of women compared to men, 130–134, 144

    of work environments, 214

    See also Academic competitiveness

Conformism

    of decision making in parallel with others, 190

    and desire to reduce regret, 222

    as psychological bias, 193–194

    See also Herd behavior

Conspicuous consumption, 174–175

Continental Airlines, 201–202

Contract theory, 203–204, 209

Convergence theory, 62–63

Cooperation

    between emotional and cognitive mechanisms, 14

    as engine of economic growth, social welfare, 61–62

    in equilibrium with two rational players, 40, 43–44, 50

    in groups motivated by correlated mental states, 89

    increases with oxytocin, 119–120

    signaled by emotions to reach equilibrium, 35–36

    sustained by emotional behavior in repeated games, 48–49

Coricelli, Georgio, 221–222

Corporations

    as bidders, prey to winner’s curse, 223–226

    competitive promotion processes, 132–133

    planning of incentive structures, 112, 201

Correlated mental states, 89

Couples’ matches using joint utility model, 154–157

Credibility fostering trust, 62

Credibility of commitments, 5–8, 122, 219

Cultural variations

    attractiveness, 138

    ethnocentrism study, 73–78

    between geographical areas in Italy, 210–211

    homogeneity vs. heterogeneity of societies, 105

    internal norms within cultures, 74, 76

    in trust across cultures, ethnic origins, 65–67, 69–71, 74, 76–80

    of ultimatum game players, 54

Culture and Conflict in Egyptian-Israeli Relations (Cohen), 77–78

Damasio, Antonio, 22

Darwin, Charles, 220

Dating market, 151, 154–155

Day traders, 135. See also Stock market decision making

Decision making

    assisted by emotions, 4

    based on fear of feeling regret, 222–223

    and definitions of rationality, xv–xvii

    difficulties/mistakes in using probabilistic reasoning, 197–200

    enabled by cooperating emotional/rational mechanisms, 236–238

    as erroneous, influenced by dopamine, 223–224, 227

    overconfidence effects, 182–183

    process described, x–xi

    See also Stock market decision making

Demand/withdrawal behavioral patterns, 140–142

Depression

    magnet treatment near prefrontal cortex, 161

    and memories of pain, xx

    realistic probabilistic assessments, 186–187

Deterrence to noncooperation, 42–43, 106

Development process in teamwork model, 204–209

Dictator game, 20–21, 53, 80

Digestive systems connected to emotional systems, xviii–xix, 118

Diminishing marginal utility, 167–168

Discrimination

    about rewards for generosity by ethnic backgrounds, 66–68, 71–72

    between bonuses offered to employees, 209–210

    against certain DNA profiles, 232

Djani, Mohammed, 77

DNA profiles, 232

Dopamine, 163, 223–224, 227

Dynamic equilibrium concept (Selten), 51–52

Ebstein, Richard, 230–231

Economic behavior

    introduced, xi

    as irrational, perverse, 223

    phenomena explained by market-signaling model, 174

    theoretical research, 63–64

Economic model (Gale-Shapley algorithm), 153–155

Economic system of homogenous Scandinavia, 105–106

El Torero hypothetical restaurant, 191–195

Emotional mechanisms working with rationality, x, 237–238

Emotional mirror cells, 28–29

Emotional power, 14, 92

Emotional responses/reactions

    as causes of winner’s curse, 225

    characteristics of, 38

    combine with cognitive analysis for artistic experiences, 161–162

    effects identified, controlled, by cognitive faculties, 227

    evolutionary advantages, 219–220

    measured by skin conductance, 20–22

    to positive/negative events, influenced cognitively, 167–172

    scientific explanations for behavior, 234

    sustain cooperation in repeated games, 49

Emotional utilities (Becker), 155, 157

Emotions

    as term, xii–xiii

    assist in decision making, 4

    control of, xx, 7, 227

    create credible commitments, 5–7

    difficulty of defining, xviii

    serving material interests, 36–37

    See also Rational emotions

Empathy

    described, 28

    arising from emotional mirror cells, 28–29

    in negotiations, 8

    related to oxytocin, 118–119, 230

    related to ToM capacity, 29–30

Empirical behavioral outcomes, 142–143, 158, 234–236

Empirical research, 11, 25, 63–64, 221

Envelope stuffing peer effects experiment, 211–212

Equilibrium

    with authentic emotional states, 186

    convergence changes in societies, 62–63

    demand/withdrawal and no comment strategies, 141–142

    emotions as signals for coordination, 35

    ensured by Grim Trigger and Tit-for-Tat strategies, 41–44

    Nash’s concept, 33–34, 80

Ericson, Doris, 82

Ericson, Larry, 82

Ethic of reciprocity, 37

Ethical codes and moral considerations

    as collective rewards, 215

    conflated with scientific claims, 231

    Ten Commandments, 106–109

Ethnic origins

    with altruism prevalent in homogenous societies, 104–106

    effects on trust, 65–67, 69–72

Ethnocentrism, 73–78, 85–86

European Union, 69–70

European University Institute (EUI), Florence, Italy, 69–71

Europeans’ trust experiment, 69–72

Evaluation metrics, 213–214

Evolution, theory of, xii

Evolutionary advantages and negative effects of regret, 221–223

Evolutionary advantages of belonging to a group, 88–89, 90. See also Group selection model

Evolutionary advantages of emotional reactions, 219–221

Evolutionary advantages of gender differences, 129, 134, 136, 143–144, 188

Evolutionary advantages of overconfidence, 186

Evolutionary attitudes toward risk, 169–170

Evolutionary definition of rationality, xvii–xviii

Evolutionary models for group structures, 98–100, 109

Extramarital affairs, 128–130

Ezra (uncle of author), 27–30

Facial expressions and features, 22–23, 27, 220, 228–229

Fairness norms

    as culturally determined, 54–55

    as emotions and social norms, xii

    fragile, 56

Falk, Armin, 211–212

Favor debts, 112–114

The Female Brain (Brizendine), 139

Fershtman, Chaim, 110–112

Field experiments compared to lab experiments, 110–111

Films, xx, 33

Finances

    affected by herd behavior, 190, 196

    Bayes’s Rule in decision making, 184

    savings based on self-commitment, 11

Finland, 70, 137–138

Fischer, Joschka, 69

Flood, Merrill M., 178–179

Flute as oldest known musical instrument, 162

fMRI brain imaging

    of auction participants, 227

    of decision making, 57

    of empathy brain activities, 28–29

    of reactions to social ostracism, 101

Fraud, xvi, 235–236

Friend or Foe TV program, 25–26

Fugue in C-Minor musical work (Bach), 162

Fusiform gyrus, 22

Gale, David, 152–155

Game theory

    introduced, xi–xii

    answers questions about contract planning, negotiations, 203

    cooperation in equilibrium with rational players, 40–41

    developing behavioral theories, 234

    emotions as signals for cooperative equilibrium, 35–36

    explaining international conflicts, 42–43

    and understanding ToM, 29–30

    See also Contract theory

Games

    battle between the sexes game, 34

    giving game, 79–80, 230

    played against computer programs, 55

    Prisoner’s Dilemma, 32, 35–36

    repetitive play, 39–40, 55

    taking game, 79–80

    ultimatum game, 29, 51–52, 54–57

Gang members’ collective emotions, 90

Gates, Bill, 103, 168

Gender differences, 125–142, 187–188, 221. See also Evolutionary advantages of gender differences

Gene survival, 100

Generosity

    exhibited with oxytocin, 119

    expectations of reciprocity, 77, 80, 101, 110

    genetic basis of, 230

    of Middle Eastern game players, 65–67

    of Palestinian game players, 77, 80

    satisfaction reduced by repaying favor debts, 112–114

    in times of crisis, 86

    in trust games, 65–67, 70, 75

    See also Altruism

Genetic compatibility using Gale-Shapley algorithm, 153–154

Genetic profiles, 230–232

Genetic variation, 145–148

German Science Foundation, 73

German-Israeli-Palestinian trust experiments, 73–78

Germany

    Baader-Meinhof Red Army faction, 12

    in WWII, 14–17, 19, 87–88, 94

Gershon, Michael, 118

Giving game, 79–80, 230

Gneezy, Uri, 65–66, 110–112, 131, 185, 204

Go Forward plan, 202

Golden rule of ethics, 37

Grim Trigger strategy, 41–44

Group behavior. See Herd behavior

Group cohesion

    cooperation motivated by correlated mental states, 89

    created, preserved, by collective emotions, 88

    created by religions, 106–109

Group evolution models, 98–100, 109

Group experiments, 89–90, 191–200

Group selection model

    explains evolutionary survival of altruism, 106

    with social cohesion benefiting groups, 106–109

    societies as individuals question, 99–100

Gruber, Dr. (Hans Winter’s Nazi teacher), 14–17

Güth, Werner, 51–52

Haifa University, 65–66

Handicap principle

    introduced, 102–103

    explains risk-taking by males, 136

    as genetic-level evolutionary explanation of altruism, 106

    with humbleness as signal for strength, 176–177

    increases attractiveness of males to females, 124

    related to market signaling, 174

Hans (author’s father), 14–17, 88

Hart, Einav, 24–25, 119

Harvard University, 130

Hearst, Patricia, 12–13

Hearst, William Randolph, 12

Hearst syndrome, 13

Hebrew University of Jerusalem, xii, 9, 74, 130

Hellman, Ziv, xiii

Herd behavior

    appears to result from rational thinking (restaurant model), 191–194

    diverse varieties arising from collective emotions, 196–197

    due to mistaken information processing, 190

    examples of difficult probabilistic reasoning, 197–200

    induced by urn with colored balls experiment, 194–195

Heuristic reasoning, 200

Hezbollah-Israeli war in Lebanon (2006), 82

Hitler, Adolf, 15–17, 87–88

Homogeneity of societies, 55, 104–106, 190

Homosexuality, 140, 142–143

Honor your father and your mother (5th commandment), 108

Humility, 175–177

Humor, 163, 164

Ichino, Andrea, 210–212

Illouz, Eva, 151–152

Incentive hormone. See Dopamine

Incentive reversal paradox, 204–210

Incentives

    Continental’s Go Forward initiative, 202

    for distinguishing emotional states, 24–25

    increase when bonuses are offered with discrimination, 209–210

    rewarding successful teamwork, 214

    to women for agreeing to compete, 134

    in workplaces leading to increased production, profits, 201, 205–210

    See also Monetary incentives; Social incentives

Incest as evolutionary genetic liability, 146–147

India, 149–151

Individualism versus collectivism, 77

Infidelity, 127–130

Insults

    collective vs. personal, 96–97

    emotional and rational reactions to, 46–47

    memories of, xx

    in negotiations, 8–9

    in Prisoner’s Dilemma game, 36, 37

    in ultimatum game, 53, 56–57

Intellectual talents signaled to market, 173–174

Interactive decisions, xii, 32

International disputes, 5–6, 42–43

Irrational emotions, 43, 221–227

Israeli justice system probability experiment, 198–200

Israeli mobile telephone spectrum auction, 225–226

Israeli national gas storage company, 225

Israeli-Palestinian conflict, 10, 42, 77–78

Israelis

    dissonance between solidarity and individualism, 81–82, 86

    individualistic behavior in trust games, 77

    and study of ethnocentrism using trust games, 73–80

Italy, 28, 70, 210–211

Iwo Jima, 180

Japan, 54, 93–94, 178–179, 182

Jealousy, 127

Jerusalem Summer School for Economics, 178

Joint utility model (Becker), 154–157

Joy, 167

Kagel, John, 169–170

Kahneman, Daniel, xi, 121, 198

Kalay, Avner, 25–26

Keefer, Philip, 61

Kidney transplants, 153–154

Kin selection model, 99–101, 142

King, Larry, 138

Knack, Stephen, 61

Knez, Marc, 201–202

Knife drawn when insulted example, 46–47

Königsberg, Germany, 14–17

Kosher food rules, 109

Lazar, Walter. See Walter (Uncle Walter Lazar)

Lazear, Edward, 132–133

Lipschitz, Ofer, 228–229

Liquid Trust, 120

Lotteries, 167–168, 179–181

Love

    creates commitment toward mates, 122–123

    increases children’s chances for survival, 123, 126

    as result of decisions, rational considerations, 149–152

    and self-interest of Becker’s joint utility model, 157–158

Maggi, Giovanni, 210–211

Market of favors, 69–70

Market signaling model, 173–177

Marketing efforts in company teamwork model, 204–209

Marriage market models, 152–159

Mas, A., 212–213

Material benefits

    and definitions of rationality, xvi, xix

    served by emotions, 36–37

    shown by Becker’s joint utility model, 155–158

Matsuoka, Yoshi Seijo, 93–94

Max Planck Institute, Germany, 52, 194, 208

“Meat Gets the Worst Out of You” paper (Stapel), 235

Medical interns, 153–154, 198

Mehl, Matthew, 139–140

Meir, Golda, 177

Memories

    elicited by actors, 8

    of emotions deeper than physical sensations, xix–xx

    of facial features, 229

    stressing positive events, 185

Men

    clichés about differences with women, 125–142

    genetic survival after age 50, 126–127

    on partners’ sexual infidelities, cheating, 127–129

    regrets of terminally ill patients, 221

    risk-taking correlations, 135–137

    in trust game studying ethnic origins, 66

    update probabilities about self-assessments, 187

Mental states, identification of, 23–30, 89

Meshulam, Meir, 18, 20

Messianic cults, 175

Mice, 124

Middle Eastern game players, 65–67

Mirror cells in the brain, 28–29

Mobile telephone spectrum auctions, 223, 225–226

Monetary incentives

    bonuses in software company model, 205–209, 213–215

    can reduce work motivation, 111–112, 203–204

    as collective in Go Forward initiative, 202–204

    compared to team-based incentives, 213

    effects on predictions, 24–25

    vs. mental compensation, 111–112

    roles of peer effects, 210

Monkeys, research on empathy, 28

Moral imperatives, 106, 214–215

Moretti, E., 212–213

Morgenstern, Oskar, 169

Motivation, decreasing with monetary incentives, 111–112, 203–204

Music inducing emotional states, 10, 160–164

Mutations

    ensure group adaptations and changes, 109

    of group selection model, 106

    in model of evolution, 98–99

Nash, John, 33

Nash equilibrium, 33–37, 79–80

National Bureau of Economic Research in United States, 105

Nature Neuroscience journal, 197–198

Nature versus nurture debate, 231

Nazis, 15–17, 19, 87–88, 94, 97

Negative events, emotional responses to, 167–172

Negotiations

    on arranged marriages and dowries, 149–150

    avoidance preferred by women, 132

    break down from ethnocentrism, 77–78

    imaginary use of oxytocin to reach agreement, 120

    with tactics of rational emotions, commitment, 8–9

Neuroeconomics, 57

New York Times newspaper, 223–224

Niederle, Muriel, 132, 185, 187

Nobel Prizes in economics

    commitment studies, 5

    contributions to game theory, xi, 51–52

    cooperation through game-theory analysis, 33, 42–43

    human behavioral economics, xi, 152, 198

    market signaling, 173

    Nash equilibrium, 33

Noncooperation

    punished in Grim Trigger and Tit-for-Tat strategies, 41–44

    of rational and selfish individuals, 32, 39–40, 51–52

Norway, 104–105, 176–177

Obsessive altruists, 104

Odean, Terry, 182

Oil companies’ bids on drilling rights, 224

Online auctions, 223–227

Optimism and overoptimism

    compared to depressive realism, 187

    encouraged by overconfidence, 186

    support convergence theory, 62

Organ donors and recipients, 153–154, 158

Ostentatious behavior, 175–176

Osterman, Paul, 203

Overconfidence

    disappears with conformism, 190, 192

    effects, 181–183

    with self-assessments, 185–188

Oxytocin, 117–120, 230

Pakistani couples, 141

Palestinians

    expectations of reciprocity for generosity, 77, 80

    importance placed on collectivism not individualism, 77

    and Israeli-Palestinian conflict, 10, 42, 77–78

    and study of ethnocentrism using trust game, 73–78

Parkinson’s disease, 223

Peacocks, 102–103

Peer effects, 196–197, 210–213

Perry, Motty, 147–149

Personality traits

    connected to genetic profiles, 230, 232

    genetic sources for identical twins, 231

    preserved from childhood to adulthood, 229

Physical/physiological sensations, xviii–xx

Pilots in WWII bombing mission research, 179–181

Poker games, 26–30

Politics (Aristotle), 219

Predictions of choices or offers in games, 24–25, 30, 53, 74–75, 135

Prefrontal cortex, 7, 161

Prisoner’s Dilemma game

    introduced, 31–33

    emotions create cooperative equilibrium, 35–37

    repetitive play, 39–40

    strategies for repeated games, 40–41

    variations, 89

Probabilities

    coin sampling, 183–184

    mistakes in calculations for decision making, 197–200

    realistic assessments by depressed people, 186–187

    reasonable doubt experiment, 198–200

    See also Updating probabilities

Proceedings of the National Academy of Sciences of the USA, 142–143

Professional success, 138–139

Proof beyond reasonable doubt experiment, 198–200

Quigley, Laura Lee, 127

Ragavan, 150

Rational behavior and rational mechanisms

    analyzed in repeated games, 39–40, 49–50

    compared to emotional behavior, xix

    cooperating with emotions enables wise decisions, 237–238

Rational emotions

    introduced, xi

    collective, 94

    and distinction between autonomous and social emotions, 5

    driven by rule rationality, 57

    enable reading signals for cooperative equilibrium, 35–36

    enable reading signals of fairness, 54–55

    felt during life-changing crises, 221

    as protection, 17

Rationality

    defined, xv–xvi

    act rationality and rule rationality (Aumann), 56–57, 67, 197

    appears to lead to herd behavior, 190–194

    with assumed self-interest, 65, 79, 203

    as slow compared to emotional mechanisms, 4

Reciprocity

    emotional need for, 37

    emphasized by societies, xviii, 80, 101

    mathematical model, 37

    as nonmonetary, 80

    and pure-giving notion, 104

Recognition of others’ emotional states

    correct identification (by poker players), 26–30

    distinguishing between authentic and faked states, 22, 24–25, 30

    leads to efficacy of rational emotions, 18

    reduced by oxytocin, 119–120

Regret, advantages and negative effects, 221–223

Religions

    claims regarding homosexuality, 142

    and collective emotions, 92

    create social cohesion benefiting groups, 106–109

    cults’ flamboyance, 175–176

    moral principles of aiding others, 100

    and prices paid for infidelity, 129

Remember the Sabbath day (4th commandment), 107

Repeated games, 33, 39–40

Reproduction

    asymmetries between men and women, 124–125, 144

    and bias toward overconfidence, 186

    enables genetic diversity, protection against viruses, 145–148

    incentivizing, 107

    sexual vs. asexual, 147

    threesome, 148

Restaurants in Malaga as herd behavior model, 190–193

Reunions, 228–230

Rewards. See Incentives; Monetary incentives; Social incentives

Risk aversion as rational trait, 169–171

Risk-taking, 134–137, 169

Ro’i (author’s nephew), 103–104

Roman Empire, 6

Rosen, Sherwin, 132–133

Roth, Alvin, 153–154

Rubik’s Cube, 162

Rule rationality, 56–57, 67, 197

Russia, 175

Rustichini, Aldo, 110–112, 131, 185, 204

Ruth’s story of being welcomed into strangers’ house, 82–86

Sacerdote, Bruce, 197

Sadness

    as autonomous emotion, 4

    empathy studies, 28–29

    outweighs joy, 168–169, 172

Salvador’s hypothetical restaurant, 191–193

Sami of northern Scandinavia, 137–138

Schelling, Thomas, 5, 33

Science journal, 139–140

Second World War, 80, 94, 178–181

Selection/natural selection

    influences evolution of individuals and societies, 98–99

    operating at group level, 104

    and reproduction, 146

    and risk-taking, 136–137

    See also Group selection model; Kin selection model

Self-commitment, 10–11

Self-confidence

    in choices made from herd behavior, 196

    of men compared to women, 187–188

    raises market value in social interactions, 186

    signaled by arrogance, 177

    and subjective assessment of selves, 185

    See also Overconfidence

Self-interest

    among nationalities, cultures, 80–82

    assumptions for teams’ behavior, 203

    as basis for joint utility model, 154, 157

    interacts with emotions in work environments, 210

    in non-crisis times, 86

    superseded by emotions, 68

Selten, Reinhard, 51–52, 73

Serotonin, xviii–xix

Sexuality and sexual behavior

    clichés about gender differences, homosexuality, 125–143

    of humans distinguished from animals, 121–122

    reproductive asymmetries between men and women, 124–125

    sperm competition, 123–124

Shapley, Lloyd, 152–155

Shares, buying and selling. See Stock market decision making

Simester, Duncan, 201–202

Social behavior

    explained by market-signaling model, 174–175

    influenced by oxytocin, 118

    speed and automatic nature of, 38

Social emotions, 4–5

Social environments, 219–220

Social incentives, 210, 212

Social ostracism, 101, 106, 129

Social structures, 98–100, 123

Software company model of teamwork, 204–210

Solidarity in times of crisis, 81–82, 86, 100

Souls, 233

Spence, Michael, 173–174

Sperm competition, 123–124

Split or Steal TV program, 23–26, 36, 119

Spock, Mr. (character in Star Trek), ix-x, 237

Spontaneous emotions, 8, 38, 151

Sports fan clubs, 94–96

Sports tournaments compared to corporate promotions, 132–133

Stanford University, 3, 132, 153

Stapel, Diederik, 235–236

Star Trek TV series, ix–x, 237

Starlings, 102–104

Start-up companies, 103, 174, 229

Stock market decision making

    as context for herd behavior, 194–196

    overconfidence effects, 182–183

    rational decision making, xvi

    risk-taking by traders, 135

Stockholm syndrome, 12–17

Suicide, xviii, 68, 180

Summers, Larry, 130

Sunstein, Cass R., xi

Supermarket checkout counter workers example, 212–213

Surprised baby video, 163–164

Surprises, emotional reactions to, 163–164

Suspiciousness, 119–120, 127

Sweden, 12, 42, 70, 105, 138

Symbionese Liberation Army (SLA), 12–13

Taking game, 79–80

Talkativeness of men and women, 139–140

Tamir, Maya, 9

Tauman, Yair, 102–103

Teamwork in workplaces

    harmed by bonuses, 213–214

    psychological, social, elements to peer effects, 210–213

    rewarded, as efficient incentive system, 202–204, 214

Teamwork model illustrating incentive reversal paradox, 204–210

Tel Aviv University, 65–66

Ten Commandments, 107–108

Testosterone levels, 134–135, 139

Thaler, Richard H., xi

The Theory of Games and Economic Behavior (von Neumann and Morgenstern), 169

“A Theory of Marriage” articles (Becker), 152

Theory of Mind (ToM), 29–30

Threats

    as bases for deterrence, 43

    enabled by anger, 7, 122

    lead to solidarity within groups, 86, 88, 93–94

Threesome sexual reproduction, 147–148

Tilburg University, the Netherlands, 235

Tit-for-Tat strategy, 41, 43

ToM. See Theory of Mind

Transplant market, 153–154, 158

Trust and trustworthiness

    as engine of cooperation, 61

    experiment on northern and southern Europeans, 69–71

    governed by emotional rules, 67

    internal norms within cultures, 74, 76

Trust games

    described, 64–68

    experiment in European context, 70–71

    German-Israeli-Palestinian experiment, 73–77

    with oxytocin administered, 119

    showing human need to belong to group, 88

    and slight deficiencies in ToM, mild autism, 29

    two-way giving and taking versions, 78–79

Tversky, Amos, 198

Twins, comparisons of behaviors, 230–231

UCLA, 140, 193–195

Ultimatum game

    in changing environments, 54–57

    described, 51–52

    and slight deficiencies in ToM, mild autism, 29

University of California, x, 182

University of Cambridge, 135

University of Chicago, 95, 132, 157

University of Oslo, Norway, 104–105, 177

University of Oxford, 150

University of Pittsburgh, 82, 132

University of Southern California, 222

Updating probabilities

    about self-assessments, 187

    and confidence/overconfidence, 192

    strengthen, weaken, beliefs about events, 183–185

Urns with gold and copper coins example, 183–184

Urns with red and black balls experiment, 194–195

US Army Air Force, 179

US Marines, 167–168, 178–179, 180

Utility compensations as rational, xvi–xvii. See also Joint utility model

Utility functions, 168–169

Utility transfers (Becker model), 155, 158–159

Vacation in Malaga example, 44–45, 49–50

Vasopressin, 230

Vesterlund, Lise, 132, 187

Viruses, 145–149

Von Neumann, John, 169

Walter (Uncle Walter Lazar), 87–88, 97

Ware, Bonnie, 221

Welfare as rational compensation, xvi–xvii

Whitty, Monica T., 127

William’s syndrome, 118

Winner’s curse, 223–227

Women

    and Becker’s utility model, 158

    as caring mothers, 126–127

    clichés about differences with men, 125–142

    and demand/withdrawal behavioral patterns, 140

    need collective emotions less than men, 95–96

    on partners’ emotional, sexual, infidelities, 127–129

    regrets of terminally ill patients, 221

    reproductive asymmetries with men, 124–125

    as risk takers compared men, 135–136

    self-confidence, self-assessments, compared to men, 187–188

    in trust game studying ethnic origins, 66

Workplaces

    geographical cultural gaps, work

    ethics, 210

    incentive structures, 201–202

    peer effects examples, experiments, 197, 210–213

    promotion competition, 132–133, 214

    weak evaluation metrics, 213–214

World Rock Paper Scissors Society, 27

Yisrael, Shlomo, 119

YouTube videos, 24, 90–92, 163–164

Zahavi, Amotz, 102, 136, 173

Zamir, Shmuel, 54–55

Zuckerberg, Mark, 103