Part I Vernon L. Smith’s Speeches
Public Speech: “Markets, Capital Markets and Globalization”
Vernon L. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Keynote Speech: “Foundations of Experimental Economics,
Economic Design and Applications”
Vernon L. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Part II The Past and Future of Economic Experiments
Behavioral Decision Making at 50: Achievements, Prospects,
and Challenges
Robin M. Hogarth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
On the Weighting of Rare Events and the Economics of Small
Decisions
Ido Erev . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Trust, Fear, Reciprocity, and Altruism: Theory and
Experiment
James C. Cox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
What Have We Learned From Experimental Finance?
Shyam Sunder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Cheating in Markets: A Methodological Exploration
Daniel Friedman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Design Science: A Prelude
Tatsuyoshi Saijo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Part III Non Game-Theoretic Individual Decision Making
Separation of Intertemporal Substitution and Time Preference
Rate From Risk Aversion: Experimental Analysis With
Reward Designs
Ryoko Wada, Sobei H. Oda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Signal Qualities, Order of Decisions, and Informational
Cascades: Experimental Evidences
Sunichiro Sasaki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
WTP and WTA for Expressway Services
Metin Senbil, Ryuichi Kitamura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Judgement in Small Decision-Making Problems
Takemi Fujikawa, Sobei H. Oda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Part IV Game-Theoretic Individual Decision Making
The Effect of Inter-group Competition in the Prisoner’s
Dilemma Game
Yoshio Iida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
The Mixed Effect of Voluntary Revelation: Evidence from
Threshold Public Goods Game Experiments
Yasuyo Hamaguchi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Trust and Reciprocity in Intergroup Relations: Differing
Perspectives and Behaviors
Fei Song . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Frames and Games
Jordi Brandts, Christiane Schwieren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Combinatorial Auction Bandwidth Trading: An Experimental
Study
Charis Kaskiris, Rajul Jain, Ram Rajagopal, Pravin Varaiya . . . . . . . . . . 181
A Note on Peer Enforcement by Selective Exclusion: An
Extended Abstract
Jana Vyrastekova, Daan van Soest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Part V Performance of the System

Recycling of Durable Goods: Modeling and Experiments
Nariaki Nishino, Hiroki Nakayama, Sobei H. Oda, Kanji Ueda . . . . . . . . 195
Decision Making in Artifactual Systems With Bounded
Rationality
Tomomi Kito, Nobutada Fujii, Kanji Ueda . . . . . . . . . . . . . . . . . . . . . . . . . 201
A Study on Virtual Market for Pareto Optimal Mediation in
Economic Society
Toshiya Kaihara, Susumu Fujii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Empirical Tests of Exchange Rate Theory
Eric O’N. Fisher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Charting the Market: Fundamental and Chartist Strategies
in a Participatory Stock Market Experiment
L′aszl′o Guly′as, Bal′azs Adamcsek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Part VI Between the System and Individual Behaviour
Audit Credibility and the Audit Fees: A Theory and an
Experimental Investigation
Tatsuhiko Kato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
When Firms Contest in Markets: An Experiment
Utteeyo Dasgupta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
How to Use Private Information in a Multi-person Zero-sum
Game
Hiroyasu Yoneda, Gen Masumoto, Sobei H. Oda . . . . . . . . . . . . . . . . . . . . 239
A Price Competition Experiment Between Middlemen:
Linear Function Case
Kazuhito Ogawa, Kouhei Iyori, Sobei H. Oda . . . . . . . . . . . . . . . . . . . . . . 245
Does the Level of Information Matter for Traders? On the
Usefulness of Information in Experimental Asset Markets
Juergen Huber, Michael Kirchler, Matthias Sutter . . . . . . . . . . . . . . . . . . . 251
A Laboratory Comparison of Arbitration Mechanisms: FOA
and AFOA
Cary Deck, Amy Farmer, Dao-Zhi Zeng . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257