2008 NeuroPsychoEconomics Conference Proceedings

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NeuroPsychoEconomics

Association for NeuroPsychoEconomics

http://www.neuropsychoeconomics.org

ISSN 1861-8243

2008

NeuroPsychoEconomics

Conference Proceedings

Editors

Martin Reimann

Oliver Schilke

Editorial Board

Tim Ambler

ngo Balderjahn

Antoine Bechara

Eduard Brandstätter

Wolfgang Breuer

Michael Czinkota

Margit Enke

Christian E. Elger

Guillén Fernández

Dieter Frey

Andrea Gröppel-Klein

Gert GutjahrHans-Georg Häusel

Manfred Holler

Scott Huettel

Peter Kenning

Erich Kirchler

Christian Korunka

Camelia Kuhnen

Marco Lehmann-Waffenschmidt

Hagen Lindstädt

George Loewenstein

Andreas Oehler

Peter Politser

Scott Rick

Lutz von RosenstielAldo Rusticini

Gad Saad

Dirk Schiereck

Friedrich Schneider

Heinz Schuler

Baba Shiv

Ale Smidts

Manfred Spitzer

Barbara Stern

Volker Trommsdorff

Bernd Weber

Peter Weinberg

Klaus Wertenbroch

Carolyn YoonPaul J. Zak





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Imprint

Editors

Association for NeuroPsychoEconomics

Martin Reimann | Oliver Schilke

Office in Germany:

Emil-Riedel-Strasse 11

Munich, Germany 80538

Office in the USA:

P.O. Box 20015

Palo Alto, California 94309-0015, USA

Fax: +49 89-92185503

E-Mail: [email protected]

Internet: http://www.neuropsychoeconomics.org

Copyright

All rights of reproduction are reserved. All material published in this proceedings is protected by copyright,

which covers exclusive rights to reproduce and distribute the material. Apart from any fair dealing for the

purposes of research or private study, or criticism or review, this publication may be reproduced, stored or

transmitted, in any form or by any means, only with the prior permission in writing of the publishers. For queries

relating to reproduction rights, please contact [email protected].



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2008 NeuroPsychoEconomics Conference Program

Platzl Hotel – In Munich’s Historic Old Town(Sparkassenstrasse 10, Munich, Germany 80331)

Presentations will be held in English.

October 9, 2008

06:00-07:00 PM: RegistrationLocation: Foyer Platzl-Stube

06:00-07:00 PM: ReceptionLocation: Foyer Platzl-Stube

07:00-10:00 PM: Munich NightlifeMeeting point: Foyer Platzl-StubeLocation: We will dine at the Hofbräuhaus am PlatzlPlatzl 9, Munich, Germany 80331(paid on your own)

October 10, 2008

08:00 AM: RegistrationLocation: Foyer Platzl-Stube

09:00 AM: Welcome note from the editorsLocation: Weiß-Ferdl-Stube

09:30 AM: Key note speech:

Friedrich Schneider, Johannes Kepler University Linz, AustriaThe morals of (not) paying taxes – Economic, institutional and psychological factorsLocation: Weiß-Ferdl-Stube

10:30 AM: Coffee break Foyer Karl-Valentin-Stube

11:00 AM: Competitive paper session I

Track: Consumer Behavior & NeuromarketingTrack chair: Florian Becker, University of MunichLocation: Weiß-Ferdl-Stube

Kuester, HessHow to overcome customers’ adoption barriers

Landwehr, Weber, Herrmann, ElgerCar faces are female – Parallels in the neural activation elicited by human and carfaces

YanivAn economic model of shoplifting

Sattler, SchlieweNegative emotions of older consumers at the point-of-sale



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11:00 AM: Competitive paper session I

Track: Organizational Behavior & Organizational DecisionNeuroscience

Track chair: Bodo Vogt, University of MagdeburgLocation: Michl-Lang-Stube

RiedlOn the insights of cognitive neuroscience for information systems research: Thoughtsand examples

PoechA psychological process model for private equity

AbreuCorporate social responsibility explained by neuroeconomics: The Daena model

Welpe, Spörrle, Grichnik, Audretsch

Cognitions and affect in decision-making

Track: Behavioral Economics & NeuroeconomicsTrack chair: Martin Kocher, University of MunichLocation: Schmid-Wildy-Stube

Thiessen, Lehmann-Waffenschmidt, RothThe (inner) logic of decision making: On the neurobiological foundation of economicdecisions

Heldmann, Morgenstern, Münte, VogtIs brain activity observable that leads to an evaluation of a probability of 0.5 that is

different from 0.5 in binary lottery choices?

Takahashi, Hadzibeganovic, Cannas, Makino, Fukui, KitayamaCultural neuroeconomics of intertemporal choice

Schosser, BöhmDoes structure induce cooperation when working together on the Internet?

01:00 PM: Lunch(included in conference fee)Location: Platzl-Stube

02:30 PM: Award speech and best paper award ceremony:

Judy Zaichkowsky, Simon Fraser University, Vancouver, British ColumbiaUsing fMRI versus the personal involvement inventory to measure involvement: Ideasfor consumer researchLocation: Weiß-Ferdl-Stube

03:30 PM: Coffee break Foyer Karl-Valentin-Stube



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04:00 PM: Competitive paper session II

Track: Consumer Behavior & NeuromarketingTrack chair: Florian Becker, University of MunichLocation: Weiß-Ferdl-Stube

Rumpel, Schäfer, KnuthFast moving consumer goods (FMCG) activate cortical reward areas

Koller, BrennerNeuroscientific methods in applied market research: Status quo and future scenarios

Limon, Reimann, OrthHolistic face types and consumer brand impressions across cultures

Track: Organizational Behavior & Organizational DecisionNeuroscience

Track chair: Bodo Vogt, University of Magdeburg

Location: Michl-Lang-Stube

Michl, Welpe, Spörrle, PicotAppraisal and affect in entrepreneurial decision-making

Laureiro-Martínez, ZolloThe neuroscientific foundations of the exploration-exploitation managerial dilemma

SterzingAre entrepreneurs’ risk attitude and insolvency related?

Bodmer, VaughanApproaches to preventing crises in family-controlled small enterprises

Track: Behavioral Economics & NeuroeconomicsTrack chair: Martin Kocher, University of MunichLocation: Schmid-Wildy-Stube

Ramsøy, SkovIndividual biological differences and models of value-based decision making

Steffen, Jansma, RockstrohBrain evoked potentials reflect how other people’s emotions influence decisionmaking

DilmaghaniAugmented replicator equation and socioeconomic dynamics

Saad, Stanton, Lee, Senior, ButlerEvolutionary neurobusiness

06:00 PM: Good bye note from the editorsLocation: Weiß-Ferdl-Stube

06:15 PM: End



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Contents

Kuester, HessHow to overcome customers’ adoption barriers....……………………………………………............................ 11

Landwehr, Weber, Herrmann, ElgerCar faces are female – Parallels in the neural activation elicited by human and car faces………………............ 12

YanivAn economic model of shoplifting....…………………………………….……………………............................ 13

Sattler, SchlieweNegative emotions of older consumers at the point-of-sale...…………………………………............................ 14

RiedlOn the insights of cognitive neuroscience for information systems research: Thoughts and examples................ 15

Poech

A psychological process model for private equity…….………………………………………............................ 16

AbreuCorporate social responsibility explained by neuroeconomics: The Daena model…………............................... 17

Welpe, Spörrle, Grichnik, AudretschCognitions and affect in decision-making……......……………………………………………............................ 18

Thiessen, Lehmann-Waffenschmidt, RothThe (inner) logic of decision making: On the neurobiological foundation of economic decisions....................... 19

Heldmann, Morgenstern, Münte, VogtIs brain activity observable that leads to an evaluation of a probability of 0.5 that is different from 0.5

in binary lottery choices?....................................................................................................................................... 20

Takahashi, Hadzibeganovic, Cannas, Makino, Fukui, KitayamaCultural neuroeconomics of intertemporal choice.……………………………………………............................ 21

Schosser, BöhmDoes structure induce cooperation when working together on the Internet?......................................................... 22

Rumpel, Schäfer, KnuthFast moving consumer goods (FMCG) activate cortical reward areas………………..………............................ 23

Koller, BrennerNeuroscientific methods in applied market research: Status quo and future scenarios…………......................... 24

Limon, Reimann, OrthHolistic face types and consumer brand impressions across cultures…………………………............................ 25

Michl, Welpe, Spörrle, PicotAppraisal and affect in entrepreneurial decision-making………………..……………………............................ 26

Laureiro-Martínez, ZolloThe neuroscientific foundations of the exploration-exploitation managerial dilemma………............................. 27



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SterzingAre entrepreneurs’ risk attitude and insolvency related?...……………………………………............................ 28

Bodmer, VaughanApproaches to preventing crises in family-controlled small enterprises……………...………............................ 29

Ramsøy, SkovIndividual biological differences and models of value-based decision making………….……............................ 30

Steffen, Jansma, RockstrohBrain evoked potentials reflect how other people’s emotions influence decision making……............................ 31

DilmaghaniAugmented replicator equation and socioeconomic dynamics..………………………………............................ 32

Saad, Stanton, Lee, Senior, Butler

Evolutionary neurobusiness....……………………………………………........................................................... 33



11

How to overcome customers’ adoption barriers

Sabine Kuester, Silke C. Hess*

Abstract

This study investigates how marketing of new products can effectively prevent innovation resistance and

enhance adoption intention by reducing customers’ perceived adoption barriers. Experimental data show that

mental simulation reduces usage barriers, benefit comparison lowers value barriers, brand signaling decreases

risk barriers, and categorization cues help to overcome cognitive barriers. Additionally, barrier instruments are

more effective for radical innovations; though, this effect is U-shaped for the categorization cue. Moreover, the

effect of the categorization cue is larger for experts when evaluating radical innovations. However, when

evaluating incremental innovations, this effect is smaller, since experts are more competent to categorize

congruent information within their field of expertise. Furthermore, a moderating effect of customers’ need for

cognition is observed, in such a way that that the effectiveness of the instruments benefit comparison and

categorization cue requires the willingness to engage in cognitive processes. On basis of the empirical results,

implications for innovation management are derived.

* Sabine Kuester, Department of Marketing, University of Mannheim, Tel.: +49 621-1812379, E-Mail: [email protected]

mannheim.de. Silke C. Hess, Department of Marketing, University of Mannheim, Tel.: +49 621-1813269, E-Mail:

[email protected].



12

Car faces are female:

Parallels in the neural activation elicited by human and

car faces

Jan R. Landwehr, Bernd Weber, Andreas Herrmann, Christian E. Elger*

Abstract

Car designers and critics often refer to car fronts as faces, thus, interpreting the lights as eyes and the grille as

nose/mouth. Perceiving nonhuman objects as human is called anthropomorphizing and behavioral studies

indicate that fostering this tendency in products leads to several desirable responses on the customer's side. So

far, studies on this topic lack process measures in order to prove this to be the underlying mechanism leaving

room for several other explanations. An fMRI study comparing the processing of female, male and car faces

indicates that the general pattern of activation overlaps remarkably between human and car faces and the

activation of the reward circuit is similar for female and car faces. This result points to the potential of applying

laws of beauty established in the domain of human faces to car designs to increase their liking.

* Jan R. Landwehr, Center for Business Metrics, University of St. Gallen, Tel.: +41 71-2242129, E-Mail:

[email protected]. Bernd Weber, Department of NeuroCognition, Life&Brain, University of Bonn, Tel.: +49 228-

6885262, E-Mail: [email protected]. Andreas Herrmann, Center for Business Metrics, University of St. Gallen,

Tel.: +41 71-2242130, E-Mail: [email protected]. Christian E. Elger, Department of Epileptology, University

of Bonn, Tel.: +49 228-28715727, E-Mail: [email protected].



13

An economic model of shoplifting

Gideon Yaniv*

Abstract

Shoplifting is a major crime problem costing American retailers more than $10 billion per year. Traditionally,

shoplifting has been a research subject of psychologists and criminologists, who have mainly investigated the

characteristics and motivations of shoplifters. Also, because studies indicate that a significant proportion of

consumers steal from shops, there has been interest in viewing shoplifting as a method of consumer product

acquisition rather than as a criminal act. Surprisingly, despite the evolvement of an extensive theoretical

literature on the economics of some major economic crimes, shoplifting has failed to attract economists’

attention. The present paper applies the economic toolbox to this problem, developing a principal-agent type

model of shoplifting and shoplifting control. The model addresses the customer’s decision of whether to shoplift

or not as well as the store’s profit-maximizing price and monitoring intensity. If caught shoplifting, the consumer

not only pays for the good but also suffers public shame and embarrassment. The paper challenges the

conventional wisdom that shoplifting losses call for higher prices, showing that a rational economic response to

increased shoplifting and/or higher monitoring costs involves a reduction in prices.

* Gideon Yaniv, Department of Economics, COM Academic Studies, Tel.: +972 2-5660496, E-Mail: [email protected].



14

Negative emotions of older consumers at the point-of-sale

Britta Sattler, Jana Schliewe*

Abstract

In this paper we present an extension of the behaviour model of environmental psychology proposed byMehrabian and Russell, that relates age determinants to negative emotions in buying situations. The notion of

emotion in this work is based on the theory introduced by Lazarus. The adapation of the general behaviour

model to the specific environment of the point of sale as well as to the age-related personality properties shows

which negative emotions can occur at the point of sale and how they can affect the buying situation.

Furthermore, it illustrates that many alterations in advanced age increase negative emotions at the point of sale.

By combining the dimensions of aging with the dimensions of the point of sale we provide a contribution to the

identification of the essential reasons for negative emotions of senior consumers. In this way, this paper helps to

improve the understanding of the origins of negative emotions of one of the most important target groups and

formst he foundation for further research.

* Britta Sattler, Department of Marketing, Technical University of Ilmenau, Tel.: +49 3677-694069, E-Mail:

[email protected]. Jana Schliewe, Department of Marketing, Technical University of Ilmenau, Tel.: +49 3677-

694038, E-Mail: [email protected].



15

On the insights of cognitive neuroscience forinformation systems research:

Thoughts and examples

René Riedl*

Abstract

The article analyzes, if and how cognitive neuroscience may contribute to scientific progress in

Wirtschaftsinformatik. Relevant research results are presented and their importance for Wirtschaftsinformatik is

discussed. We argue that the application of neuroscience methods and the consideration of findings of cognitive

neuroscience enrich the research program of Wirtschaftsinformatik. Finally, we present a conclusion and

prospects for cognitive neuroscience.

* René Riedl, Institute for Information Engineering, Johannes Kepler University Linz, Tel.: +43 732-246 9454, E-Mail:

[email protected].



16

A psychological process model for private equity

Angela Poech*

Abstract

Investors in public capital markets usually show systematically anomalies in their behaviour such as that their

behaviour is divergent to what theory (expected utility hypothesis) would predict. Therefore the question

arouses: Do such anomalies also exist in private capital markets? There is a body of literature which gives reason

to assume that in private equity investing there is also room for similar biases in the field of information

processing and decision making. The research question aims 1) at the underlying theories which serve as a basis

for explaining the observed effects in behaviour and 2) on the development of a behavioural model for private

equity to define which phase corresponds with which behavioural effect. Two empirical studies (survey, case

study) – have been conducted demonstrating that the success of private equity transactions is strongly influenced

by behavioural elements. Based on this result a multi-phase model has been developed that establishes the

relationship between these psychological factors and the different phases of the investment process. This

‘dynamic model for private equity’ can serve as a starting point for further research as it enables researchers to

analyse advantageous or disadvantageous conditions of private equity investments and eventually to connect it

with performance measures..

* Angela Poech, Department of Business Administration, University of Applied Sciences Munich, Tel.: +49 89-12652758,

E-Mail: [email protected].



17

Corporate social responsibility explained byneuroeconomics:

The Daena model

Jose L. Abreu*

Abstract

A neural model to explain Corporate Social Responsibility (CSR) is proposed. The model proposes that CSR is

created by social interactions and reciprocity that trigger cooperation and competition in the organizations (first

stage) which in turn through collective empathy and altruism, also inside the firm (second stage), motivate CSR

activities (third stage). Outside the company, CSR motivates in the stakeholders trust and social preferences,

possibly by means of a rewarding mechanism (fourth stage). It is interesting to observe that the proposed model

acts as a neural cycle in which the fourth stage “connects” with first stage. It means that trust and social

preferences in stakeholders (fourth stage) through reciprocity promotes cooperation with the organization (first

stage). The proposed model produced the following concept of CSR: “The process of cooperation andcompetition through which social interactions produce empathic and altruistic behaviors involving affective

response, cognitive capacity, emotion regulation, trust, social preferences and reciprocity”.

* Jose L. Abreu, Department of Business, Universidad Autonoma de Nuevo Leon, Tel.:+ 52 81-83555567, E-Mail:

[email protected].



18

Cognitions and affect in decision-making

Isabell M. Welpe, Matthias Spörrle, Dietmar Grichnik, David B.Audretsch*

Abstract

This paper examines emotion as antecedents of entrepreneurial opportunity evaluation and exploitation while

simultaneously including specific cognitive appraisal dimensions and situational characteristics of the given

opportunity. We obtained data using a questionnaire experiment with a 3 (probability of success: high vs. low vs.

uncertain) x 2 (profit in case of success: high vs. low) fully crossed between subjects design. Based on 138

participants, the results of this study indicate that both probability of success and profit separately influence the

evaluation and exploitation of entrepreneurial opportunities. The results also indicate direct positive effects for

cognitive primary appraisal and negative for fear on opportunity evaluation and exploitation. Furthermore,

moderation analyses indicate that the predictive power of evaluation on exploitation decreases with increasing

levels of fear and increases with increasing levels of joviality. Specifically, fear does not only directly decrease

the probability of entrepreneurial exploitation (as a main effect) but also reduces the positive influence of

entrepreneurial evaluation on entrepreneurial exploitation. We provide detailed discussion of the results in the

conclusion of the paper.

* Isabell M. Welpe, Entrepreneurship, Growth and Public Policy Group, Max Planck Institute of Economics, Tel.: +49 173-

3867398, E-Mail: [email protected]. Matthias Spörrle, Department of Psychology, Ludwig-Maximilians-University,

Tel.: +49 89-21805672, E-Mail: [email protected]. Dietmar Grichnik, Department of Entrepreneurship,

Otto Beisheim School of Management, Tel.: +49 261-6509260, E-Mail: [email protected]. David B. Audretsch,

Entrepreneurship, Growth and Public Policy Group, Max Planck Institute of Economics, Tel.: +49 3641-686700, E-Mail:

[email protected].



19

The (inner) logic of decision making:

On the neurobiological foundation of economic

decisions

Friedrich Thiessen, Marco Lehmann-Waffenschmidt, Gerhard Roth*

Abstract

The evolution of the human brain and its functional processes are characterized by an intelligent way of dealing

with restrictions. This has led to specialized perception and decision making mechanisms saving energy by

simplifying and routinizing cognitive processes. Furthermore, rules of thumb are employed on the basis of the

personal stock of experiences. The limited capacity of the human brain has consequences for the economic

behaviour of subjects. Consequently, phenomena such as satisficing, prosocial behaviour, principal-agent

conflicts etc. can be derived from neurobiological conditions. Up to now the literature has hardly dealt with the

question of how to describe the processes in the brain on the basis of insights from neurobiology so that

conclusions on the level of economic aggregate variables are possible. The aim of the contribution is to bridgethis gap providing a stylized model of decision processes in the human brain.

* Friedrich Thiessen, Department of Finance and Banking, Technical University of Chemnitz, Tel.: +49 371-53126190,

E-Mail: [email protected]. Marco Lehmann-Waffenschmidt, Department of Managerial Economics,

Technical University of Dresden, Tel.: +49 351-46336098, E-Mail: [email protected]. Gerhard Roth,

Brain Research Institute, University of Bremen, Tel.: +49 421-2183692, E-Mail: [email protected].



20

Is brain activity observable that leads to anevaluation of a probability of 0.5 that is different

from 0.5 in binary lottery choices?

Marcus Heldmann, Ralf Morgenstern, Thomas Münte, Bodo Vogt*

Abstract

This paper focuses on the problem of probability weighing in the evaluation of lotteries. According to Prospect

Theory a probability of 0.5 has a weight of smaller than 0.5. We conduct an EEG experiment in which we

compare the results of the evaluation of binary lotteries by certainty equivalents with the results of the bisection

method. The bisection methods gives the amount of money that corresponds to the midpoint of the utilities of the

two payoffs in a binary lottery as it has been shown previously. In this method probabilities are not evaluated.

We analyze the EEG data focused on whether a probability is evaluated or not. Our data show differences

between the two methods connected with the attention towards sure monetary payoffs, but they do not show

brain activity connected with a devaluation of the probability of 0.5.

* Marcus Heldmann, Deparment of Neuropsychology, Otto-von-Guericke-University Magdeburg, Tel.: +49 391-6718469,

E-Mail: [email protected]. Ralf Morgenstern, Institute for Empirical Econometrics, Otto-von-

Guericke-University Magdeburg, Tel.: +49 391-6711204, E-Mail: [email protected]. Thomas

Münte, Deparment of Neuropsychology, Otto-von-Guericke-University Magdeburg, Tel.: +49 391-6718475, E-Mail:

[email protected]. Bodo Vogt, Institute for Empirical Econometrics, Otto-von-Guericke-University

Magdeburg, Tel.: +49 391-6718426, E-Mail: [email protected].



21

Cultural neuroeconomics of intertemporal choice

Taiki Takahashi, Tarik Hadzibeganovic, Sergio A. Cannas, TakakiMakino, Hiroki Fukui, Shinobu Kitayama*

Abstract

According to theories of cultural neuroscience, Westerners and Easterners may have distinct styles of cognition

(e.g., different allocation of attention). Previous research has shown that Westerners and Easterners tend to

utilize analytical and holistic cognitive styles, respectively. On the other hand, little is known regarding the

cultural differences in neuroeconomic behavior. For instance, economic decisions may be affected by cultural

differences in neurocomputational processing underlying attention; however, this area of neuroeconomics has

been largely understudied. In the present paper, we attempt to bridge this gap by considering the links between

the theory of cultural neuroscience and neuroeconomic theory of the role of attention in intertemporal choice.

We predict that (i) Westerners are more impulsive and inconsistent in intertemporal choice in comparison to

Easterners, and (ii) Westerners more steeply discount delayed monetary losses than Easterners. We examine

these predictions by utilizing a novel temporal discounting model based on Tsallis’ statistics (i.e. a q-exponential

model). Our preliminary analysis of temporal discounting of gains and losses by Americans and Japanese

confirmed the predictions from the cultural neuroeconomic theory. Future study directions, employing

computational modeling via neural networks, are outlined and discussed.

* Taiki Takahashi, Department of Behavioral Science, Hokkaido University, Tel.: +81 11-7063057, E-Mail:

[email protected]. Tarik Hadzibeganovic, Department of Psychology, University of Graz, Tel.: +43 660-

5247343, E-Mail: [email protected]. Sergio A. Cannas, Facultad de Matemática, Universidad Nacional de

Córdoba, Tel.: +54 351-4334051, E-Mail: [email protected]. Takaki Makino, Department of Frontier Science

and Science Integration, The University of Tokyo, Tel.: +81 3-58031697, E-Mail: [email protected].

Hiroki Fukui, Department of Forensic Psychiatry, National Center of Neurology and Psychiatry. Shinobu Kitayama,

Department of Psychology, University of Michigan, Tel.: +1 734-6476786, E-Mail: [email protected].



22

Does structure induce cooperation when workingtogether on the Internet?

Stephan Schosser, Klemens Böhm*

Abstract

The problem of establishing cooperation and avoiding free riding in anonymous environments has attractedresearch interest during the last few years. Solutions for this problem are central in online scenarios. Here,

interactions are often between strangers and one-shot. Up to now, the most important mechanisms to solve this

problem are feedback and punishment. Yet, system designers of internet applications can define how individuals

in such systems interact. In this paper, we propose the new concept of indirect partner-partner interaction, which

makes use of this system property. Here, a sequence of partner-partner relationships is used to establish

cooperation among strangers. I.e., we establish interaction via a structure. To test the impact of structure on

cooperativeness of the participants, we analyze so called structured peer-to-peer systems. Behavioural economics

help us to explore stability, efficiency, strategies used and the levels of cooperation in such systems. Cooperation

in such systems is as high as in systems with punishment, but does not lead to the decrease of efficiency

observed there. Participants resort to cooperation even in the presence of free riders. Aside that feedback does

not improve cooperation. Countermeasures against strategic use of feedback need not be taken. We show, that

not only psychological factors, but system structure can enhance cooperation.

* Stephan Schosser, Department of Computer Science, University of Karlsruhe (TH), Tel.: +49 721-6083968, E-Mail:

[email protected]. Klemens Böhm, Department of Computer Science, University of Karlsruhe (TH), Tel.:

+49 721-6083968, E-Mail: [email protected].



23

Fast moving consumer goods (FMCG) activate corticalreward areas

Franziska Rumpel, Michael Schäfer, Michael Knuth*

Abstract

Strong brands, which are successful over a long time period already provide positive associations by mentioningtheir brand names. Aim of this study was to analyse the impact of strong and weak chocolate brands on

consumer assessments for chocolate brands. Therefore we applied a questionnaire, an association test, conjoint

measurement and an experiment with functional magnet resonance imaging (fmri). The as-sumption that

individual strong brands show activations in the ventral striatum (putamen), a crucial part of the cortical reward

circuitry, was confirmed. The results show, that strong brands have among higher mar-ket shares, emotional and

associative linkages in consumer brains.

* Franziska Rumpel, Department of Marketing, Otto-von-Güricke-University Magdeburg, Tel.: +49 391-6718313, E-Mail:

[email protected]. Michael Schäfer, Department of Neurology II, Otto - von- Güricke University Magdeburg,

Tel.: +49 391-6713435, E-Mail: [email protected]. Michael Knuth, Department of Social

Psychology, Otto-

von-

Güricke University Magdeburg, Tel.: +49 391-6718470, E-Mail: [email protected].



24

Neuroscientific methods in applied market research:

Status quo and future scenarios

Monika Koller, Gerhard Brenner*

Abstract

During the past decade, marketing research has recognized the potential of applying neuroscientific methods. As

the advantages of these techniques applied in both fundamental as well as practical marketing research are quite

obvious from a scientific point of view, this is not necessarily the case from a practitioner's perspective. The

present article is about first empirical results of a qualitative study addressing the issue of how companies

evaluate the 'neuromarketing-approach' and how it could develop in the near future.

* Monika Koller, Institute for Marketing Management, Vienna University of Economics and Business Administration, Tel.:

+43 1-313365330, E-Mail: [email protected]. Gerhard Brenner, Institute for Marketing Management, Vienna

University of Economics and Business Administration, Tel.: +43 1-313364609, E-Mail: [email protected].



25

Holistic face types and consumer brand impressionsacross cultures

Yonca Limon, Martin Reimann, Ulrich R. Orth*

Abstract

This paper aims to provide empirical support for holistic face types rooted in unique combinations of facialfeatures. Results should indicate associations between face types and generic brand impressions. These should be

distinctive, highlighting the holistic face types that firms should consider for achieving specific responses.

Neuroscientific methods will be applied to assess the match between faces and brands. Differences and

similarities across cultures should support cross-cultural or even global faces.

* Yonca Limon, Deparment of Marketing, Christian-Albrechts-University Kiel, Tel.: +49 431-8801413, E-Mail:

[email protected]. Martin Reimann, Department of Psychology, Stanford University, Tel.: +1 (650) 723-7431,

E-Mail: [email protected]. Ulrich R. Orth, Deparment of Marketing, Christian-Albrechts-University Kiel, Tel.: +49

431-8804416, E-Mail: [email protected].



26

Appraisal and affect in entrepreneurial decision-making

Theresa Michl, Isabell Welpe, Matthias Spörrle, Arnold Picot*

Abstract

This study is concerned with the influence of cognitive appraisals and emotions on the pre-entrepreneurialdecision-making process within three different samples: entrepreneurs, students, employees. It is investigated,

whether primary appraisal, secondary appraisal, and entrepreneurial evaluation mediate the relationship between

perceived situational characteristics of an entrepreneurial opportunity and the likelihood of exploiting it.

Furthermore, a moderating effect of emotions on the relation between the evaluation of an entrepreneurial

situation and the likelihood of exploiting it is examined for all three groups. Overall results of our experimental

scenario study reveal that cognitions substantially mediate the association between characteristics of the

entrepreneurial situation and individual exploitation tendencies and that the association between evaluation and

exploitation is moderated by emotions. Moreover, we found that entrepreneurs, students, and employees to some

extent differ in their mediating appraisals as well as in their moderating emotions. This indicates that these three

groups might differ in their basal psychological processes based on previous entrepreneurial experience shaping

their neural units of information processing.

* Theresa Michl, Institute for Information, Organization and Management, Ludwig-Maximilians-University Munich, Tel.:

+49 178-1981516, E-Mail: [email protected]. Isabell Welpe, Entrepreneurship, Growth and Public Policy

Group, Max Planck Institute of Economics, Tel.: +49 173-3867398, E-Mail: [email protected]. Matthias Spörrle,

Department of Psychology, Ludwig-Maximilians-University, Tel.: +49 89-21805672, E-Mail: [email protected]

muenchen.de. Arnold Picot, Institute for Information, Organization and Management, Ludwig-Maximilians-University

Munich, Tel.: +49 89-21802252, E-Mail: [email protected].



27

The neuroscientific foundations of the exploration-exploitation managerial dilemma

Daniella Laureiro-Martínez, Maurizio Zollo*

Abstract

This paper proposes one way to bridge findings from neurology to uncover the microfoundations of an importantmanagerial dilemma: the organizational ability to continuously do exploration and exploitation. We propose that

the origins of this ability lie in some key individuals’ cognitive flexibility. We develop a theoretical framework

that aims at uncovering the mechanisms behind the individual and the organizational ability to successfully

balance the exploration-exploitation tradeoff. Testable hypotheses and some of the key challenges that

researchers may face when implementing research bridging management and neurosciences are presented. We

also derive some managerial implications and conclusions.

* Daniella Laureiro-Martínez, Department of Management, Bocconi University, Tel.: +39 3296004437, E-Mail:

[email protected]. Maurizio Zollo, Department of Management, Bocconi University, Tel.: +39 3663365013, E-Mail:

[email protected].



28

Are entrepreneurs’ risk attitude and insolvencyrelated?

Heike Sterzing*

Abstract

Beside the objective characteristics of start-ups which are part of their business plans like financial planningother soft factors like risk attitudes or overconfidence of entrepreneurs seem to be important for the success of

the start-up. The credit-risk evaluation of a start-up is an important topic of banks since improvements in the

evaluation can clearly improve the performance of the creditor. Soft factors like risk profiles of debtors seem to

have a non negligible impact on this evaluation. Although the importance of these factors is known it is difficult

to measure and operationalize them. As a consequence they are very often neglected resulting in an increase of

the avoidable risk. In this paper we analyze risk characteristics of insolvent entrepreneurs to figure out whether

they had an impact on the success of the former companies of the insolvent entrepreneurs. We use questionnaires

and interviews with insolvent entrepreneurs who were the head of medium sized businesses to determine their

special personal characteristics. As a result of this empirical study we observe some factors in which these

persons are different from other persons regarding risk loving behavior for losses and loss aversion.

* Heike Sterzing, Institute for Empirical Econometrics, Otto-von-Guericke-University Magdeburg, Tel.: +49 391 6718427,

E-Mail: [email protected].



29

Approaches to preventing crises in family-controlledsmall enterprises

Ulrich Bodmer, David R. Vaughan*

Abstract

With their limited resources family-controlled small enterprises are especially vulnerable to the catastrophicconsequences of crisis events. As crises are psychological processes they cannot be handled by economic

analyses alone, because various biases may influence decision making. An entrepreneur’s decision making might

be improved, however, if perceptions of the enterprise’s situation held by the family, and other stakeholders,

were to be taken into consideration at an early stage of the crisis process. This paper presents, as a proposal, a

proc-ess model, and a management tool based on quantitative and qualitative data, to evaluate the perceptions of

the different stakeholders of the (in)stability of an enterprise in order to prevent the emergence of crisis events.

* Ulrich Bodmer, Center of Life and Food Sciences Weihenstephan, Technical University of Munich, Tel.: +49 8161-

713415, E-Mail: [email protected]. David R. Vaughan, Chair of Tourism Economics, Bournemouth University -

Talbot Campus, Tel.: +44 1202-965173, E-Mail: [email protected].



30

Individual biological differences and models of value-based decision making

Thomas Z. Ramsøy, Martin Skov*

Abstract

Neuroeconomics is the scientific, multidisciplinary study of value-based decision making. Recent advances inmethods and findings in cognitive neuroscience have gained attention and influence on our understanding of the

basic mechanisms of behaviour. With the advent of two new paradigms in cognitive neuroscience – imaging

genetics and the cognitive neuroscience of ageing – the focus of brain-behaviour research is turning towards the

study of normal variation and individual differences. As such, insights from these approaches hold the promise

to provide a more detailed account of value-based decision making. In addition, this understanding may provide

the means to induce short-term and reversible alterations in decision behaviours. In this paper, we present and

discuss these insights and how they may inform the neuroeconomic study of decision making.

* Thomas Z. Ramsøy, Center for Marketing Communications, Copenhagen Business School, Tel.: +45 2181-1945, E-Mail:

[email protected]. Martin Skov, Danish Research Centre for MR, Copenhagen University Hospital Hvidovre, Tel.: +45

3632-3329, E-Mail: [email protected].



31

Brain evoked potentials reflect how other people’semotions influence decision making

Astrid C. Steffen, Bernadette M. Jansma, Brigitte Rockstroh*

Abstract

In rational models of decision making emotion is thought to have no or negative influences on deciding. Thepresent psychophysiological study examined the influence of different emotional primes (angry, happy) on

different purchase decisions, while the EEG was recorded. In a within-subject design, participants had to make

Go-/NoGo-decisions on whether or not to rent an apartment because of price or light. On two thirds of the 1152

trials in total, emotional primes preceded the target. Response cer-tainty was measured by reaction times (RT)

and event-related potentials (NoGo-Go-peak amplitude) at 200 ms (N200). Primes generally acceler-ated

responses (RT) across affective prime conditions. Affective valence of primes influenced N200-amplitude,

which was larger following posi-tive faces regardless of purchase condition. Price-based decisions were made

faster and elicited larger N200 than brightness-based decisions. Results support a cognitive-tuning-model of

decision making rather than a rational choice model, with the N200 proving a sensitive measure for the interplay

of cognitive and affective aspects in decision making..

* Astrid C. Steffen, Department of Clinical Psychology & Clinical Neuropsychology, University of Konstanz, Tel.: +49

7531-883301, E-Mail: [email protected]. Bernadette M. Jansma, Department of Cognitive Neuroscience,

Maastricht University, Tel.: +31 43-3881934, E-Mail: [email protected]. Brigitte Rockstroh, Department

of Clinical Psychology & Clinical Neuropsychology, University of Konstanz, Tel.: +49 7531-882085, E-Mail:

[email protected].





33

Evolutionary neurobusiness

Gad Saad, Angela A. Stanton, Nick Lee, Carl Senior, Michael J. Butler*

Abstract

Numerous scientific disciplines suffer from a common epistemological ailment. They tend to generate

impressive bodies of empirical knowledge that are otherwise disjointed. The key force that shapes this reality is

the lack of organizing meta-frameworks that are capable of otherwise creating a consilient body of core

knowledge. In the current paper, we seek to demonstrate the synthetic value of evolutionary theory across a wide

range of neuro-business disciplines including neuroeconomics, neuromarketing, neuroentrepreneurship, and

organizational neuroscience. Neuroscientists operating at the junction of the brain sciences and a wide range of

business disciplines stand to benefit in recognizing that the minds of Homo consumericus, Homo corporaticus,

and Homo economicus have been forged by Darwinian forces that have shaped all living organisms. A complete

and accurate understanding of most neuro-business phenomena requires that these be tackled at both the

proximate (i.e., how something operates) and ultimate (its adaptive function) levels.

* Gad Saad, John Molson School of Business, Concordia University, Tel.: +1 514-8482424, E-Mail:

[email protected]. Angela A. Stanton, Entrepreneurship, Growth and Public Policy Group, Max Planck

Institute for Economics, Tel.: +49 3641-686700, E-Mail: [email protected]. Nick Lee, Marketing Group, Aston

Business School, Tel.: +44 121-2043152, E-Mail: [email protected]. Carl Senior, Department of Psychology, Aston

University, Tel.: +44 121-2044068, E-Mail: [email protected]. Michael J. Butler, Work & Organisational Psychology

Group, Aston Business School, Tel.: + 44 121-2043053, E-Mail: [email protected].





35

2009 Call for papers

Please be invited to submit a paper to the 2009 NeuroPsychoEconomics Conference in Bonn, Germany. Theconference will he held from October 5-6, 2009 at the LIFE&BRAIN Center Bonn (Sigmund-Freud-Strasse 25,Bonn, Germany 53127). The deadline for submissions is August 1, 2009.

The conference theme of 2009 is:

“Creating and Sharing Advanced Knowledge

in Neuroeconomics, Neuromarketing, and Neurofinance”

Manuscripts should combine concepts from neuroscience and/or psychology with problems of business andeconomics. Topics may include (but are not restricted to):

• Application of concepts and methods from neuroscience and/or psychology in solving business and economicsproblems (e.g., marketing, behavioral finance, organization science, management, and decision science)

• Analysis of interpersonal behavior (e.g., relationships between customer-supplier, supervisor-subordinate,and/or investor-firm) with the means of neuroscience and/or psychology

• Discussion of ethical and legal issues at the interface of psychology, neuroscience, and business andeconomics research

• Evaluation of the state of the field of research in neuroeconomics

• Presentation of state-of-the-art techniques for solving neuroeconomic problems

Empirical as well as conceptual manuscripts are welcome.

Manuscripts can be written in English or German. The conference language will be English.

Manuscripts submitted for the conference must not be published elsewhere at the time of the conference.

Submission process

• Please see http://www.neuropsychoeconomics.org for submission instructions.

• Manuscripts for the 2009 NeuroPsychoEconomics Conference must be submitted by August 1, 2009 to

[email protected].• Manuscripts passing the double-blind review process will be accepted for presentation at the conference.

Manuscript submissions must be accompanied by a cover letter that indicates the intention to publish thepaper, if accepted, either in its entirety in the “ Journal of Neuroscience, Psychology, and Economics” (ISSN1937-321X) for English submissions, in the journal “ NeuroPsychoEconomics” (ISSN 1861-4523) for Germansubmissions, or in abstract form (English only) in the “ NeuroPsychoEconomics Conference Proceedings”(ISSN 1861-8243).

• The manuscript must conform to the author guidelines. Please see http://www.jnpe.org orhttp://www.neuropsychoeconomics.org.

• In submitting manuscripts, the authors affirm that, if accepted, at least one author will register for the 2009NeuroPsychoEconomics Conference and appear at the conference to present the paper.



36

Membership & mailing list

Membership

You can become a member of the Association for NeuroPsychoEconomics online at http://www.jnpe.org or

http://www.neuropsychoeconomics.org.

Membership includes a subscription to either the peer-reviewed scientific English “ Journal of Neuroscience,

Psychology, and Economics” or the peer-reviewed scientific German journal “ NeuroPsychoEconomics”, adiscount in conference fees, and special announcements.

Mailing list

In order to subscribe to the NeuroPsychoEconomics mailing list, please send an e-mail [email protected] with Subscribe in the subject field.

You will receive up-to-date information on topics at the interface of economics, management, psychology, and

neuroscience through the official NeuroPsychoEconomics mailing list. The list will also cover information aboutconferences and publications from those fields.

You will also have the possibility to send own information through the list.

Please refrain from SPAM.

In order to unsubscribe, please send an e-mail to [email protected] with Remove in thesubject line.



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2008 NeuroPsychoEconomics Conference Proceedings