University of Cologne

Excellence Center for Social and Economic Behavior  

The Center for Social and Economic Behavior (C-SEB) at the University of Cologne (UoC) brings together Cologne-based researchers from economics, management science, and psychology. Together with internationally renowned scientists from Europe and the USA they investigate the fundamental principles and behavioral mechanisms that affect social and economic behavior.

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Social and economic behavior is shaping almost all aspects of our lives. But it does not only influence the actions of individuals. Behavior, and its underlying motivation and cognition, affects the success of societies, politics, markets, organizations, and individuals. Understanding its determinants, and how it can be ‘managed’, is thus of crucial importance for understanding and addressing major challenges to society and humanity.

The C-SEB aims to develop an empirically based theory of the institutions that define economic incentives and of the conditions that influence information processing in social and economic contexts.Using a behavioral economics and social cognition approach, the center examines how these mechanisms can be designed and manipulated. The C-SEB seeks to build a bridge between laboratory research and real-world contexts in order to contribute to solutions to contemporary challenges in the economy.

Our Aims

Scientific exchange

The C-SEB runs various programs to create a productive research environment and to promote interdisciplinary collaboration among scientists. In order to foster communication across disciplines and research units, the center regularly organizes workshops and conferences with international guests.
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Research funding

The C-SEB provides funding for outstanding individuals and excellent collaborative research projects in the field of behavioral economics and social cognition. There are seven funding lines at the moment that are designed to serve different purposes and target groups.
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Gender equality and junior researcher promotion

The C-SEB is strongly committed to promote gender equality in academia and to advance the careers of junior researchers. The center assists its members with career planning and with reconciling academic and family life.
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Press Releases

Prof. Dr. Axel Ockenfels has been appointed as new member of acatech – the National Academy of Science and Engineering. …

The American economist Richard H. Thaler was awarded this year’s Nobel Memorial Prize in Economic Sciences for his pioneering contributions …

In the recent Handelsblatt Economics Ranking 2017, Professors of the Center for Social and Economic Behavior (C-SEB) have once again …

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In the media

FAZ, 17/11/2017 | Ottmar Edenhofer & Axel Ockenfels

“Der Kohlenstoff bekommt nun einen Preis: In ihren freiwilligen Selbstverpflichtungen im Rahmen des Abkommens von Paris haben 81 Staaten versprochen, eine CO2-Steuer oder einen Emissionshandel einzuführen.[…] Viele Beobachter halten den Emissionshandel für einen umweltpolitischen Erfolg. In der Tat, die politisch festgelegte Obergrenze für Emissionen wurde beispielsweise in der EU eingehalten, ja sie wurde nicht einmal ausgeschöpft.[…] Klimaschutz ist zuallererst ein Problem der internationalen Kooperation; nationale Alleingänge können das Klimaproblem nicht lösen. Deshalb ist es von zentraler Bedeutung, dass die internationale Staatengemeinschaft kooperiert und Kohlenstoffpreise koordiniert.”

Stern, 08/11/2017

“Wer mit Karte zahlt, dem fließt das Geld womöglich leichter durch die Hände: Deutsche und österreichische Forscher haben herausgefunden, dass sich Konsumenten an Zahlungen mit Kredit- oder EC-Karten deutlich schlechter erinnern können als an Zahlungen mit Bargeld. “Eine genaue Erinnerung an vergangene Ausgaben wirkt sich auf die Bereitschaft aus, zukünftige Ausgaben zu tätigen”, sagte einer der Studienautoren, Holger Roschk. Deshalb brauche es neue Designs, um Ausgaben besser zu visualisieren und somit ein gesundes finanzielles Verhalten zu bestärken, so das Fazit.”

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Berger, S., Hatt, H. & Ockenfels, A. 2017.

“Exposure to Hedione Increases Reciprocity in Humans.” Frontiers in Behavioral Neuroscience, 11(97).

Khalmetski, K., Rockenbach, B. & Werner, P. (in press).

“Evasive Lying in Strategic Communication.” Journal of Public Economics.
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Current research issues at C-SEB

Are people selfish and rational?

Individuals often have to decide whether to act compliant to rules or to seek their own advantage. Unethical or unfair actions, such as lying or cheating, can lead to disadvantages for others and affect economic life. Many persons are honest in such situations and waive their personal advantage, which for example could be achieved by lying. Other individuals, however, behave immorally when it benefits them. Whether a person behaves fair or not depends on a variety of social and economic factors, but generally on their personality and biographical experiences.

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Why do markets fail, and how can we repair them?

Markets are places where supply and demand meet according to certain rules. However, errors in market order or irrational behavior of market participants can lead to a malfunction or complete collapse of the distribution of goods in financial, labor, consumer and other markets. Since the effects of such crises can have disastrous consequences, it is important to design markets and other economic institutions on the basis of sound behavior research. In this process incentives for market participants are set in such a way that they achieve their goals and make the market work.

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How to design climate negotiations that work?

During the last 150 years the average global temperature has risen sharply caused by the increased release of greenhouse gases by humans. As global warming carries high risks for the environment and human life, it is important to reduce greenhouse gas emissions. But so far, the countries were not successful in agreeing on a common climate target. To guide the climate negotiations to success, participants must be encouraged to make commitments. One requirement for this is a fair distribution of financial compensations between poor and rich countries through transfer payments. Such compensation can be achieved for example by introducing a global CO2 price that countries can implement through measures suited to their respective situation.

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When do we trust in others?

Trust in the honesty of another person is an essential prerequisite for social and economic interaction. Without trust fair and reliable socializing would be difficult to imagine. The extent to which we trust other people depends on a variety of factors, in particular on our assessment of the situation and how we perceive the other person. People who can look back on common positive experiences or who can identify with the values, goals and needs of their partner, trust each other more than people who do not know each other or who perceive themselves as being different.

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Why do we compare with others?

The knowledge of one’s own abilities is of great importance, not only in sports, but in many areas of work and everyday life. People can assess their performance through comparing themselves to others. Only by interrelating their own abilities and achievements to those of other individuals, their meaning can be determined. It surely can be painful, if somebody is better. But it can also provide us with valuable information about what we can do better and motivate us to make greater efforts.

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How can we resist temptations?

Often, our long-term goals, such as a healthy diet, are in conflict with short-term temptations like a delicious dessert. Whether we manage to resist these temptations depends on a variety of personal and situational factors. Thus, a social environment that encourages steadfastness can be of great help, whereas intoxicants like alcohol make a loss of control more likely. Psychological factors such as strength of will and frustration tolerance play a role as well. The easiest way to resist temptations is to avoid such situations from the outset.

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