Investments into Education

Topics: Capital, Education, Capital accumulation Pages: 271 (50564 words) Published: March 10, 2015
Essays in Behavioral Economics

Alexander Sebald

ISBN: 978-90-5278-752-7
Copyright: Alexander Sebald, 2008

Essays in Behavioral Economics


ter verkrijging van de graad van doctor
aan de Universiteit Maastricht,
op gezag van de Rector Magnificus,
prof. mr. G.P.M.F. Mols
volgens het besluit van het College van Decanen,
in het openbaar te verdedigen op
donderdag 25 september 2008 om 12.00 uur


Alexander Christopher Sebald




Prof. Dr. Georg Kirchsteiger
Prof. Dr. Arno Riedl

Dr. Markus Walzl

Prof. Dr. Jean-Jacques Herings (voorzitter)
Prof. Dr. Mathias Dewatripont
Prof. Dr. Victor Ginsburgh
Dr. Ronald Peeters

To my parents

Table of Contents
1. Acknowledgments

p. 9

2. Introduction

p. 13

3. Investments into Education - Doing as the parents did

p. 17

4. Procedural Concerns and Reciprocity

p. 49

5. Procedural Concerns in Psychological Games

p. 87

6. How (too much) self-esteem facilitates contracts
with subjective evaluations

p. 125

7. Short Curriculum Vitae

p. 153

Writing a doctoral thesis is never an endeavor that one accomplishes by oneself. Discussions with supervisors, co-authors, friends and family are as (if not more) important as the own contribution. Therefore, I would like to thank those that have been close to me in all those years and have accompanied me on this adventure. First, I would like to express my deep gratitude to Georg who supported me from the first minute that I fearlessly walked into his office. The fact that his door was always open, he read and re-read every single paper that I worked on and he loves coffee as much as I do gave me an invaluable sense of security. Thanks a lot also to my other supervisors and co-authors Arno, Markus, Martin, Charles and Gani. Our discussions were / are immensely important to me and I honestly hope that we will continue our inspiring collaboration. Third, I would like to thank the ’Bruxelles-Gang’ for the wonderful time that we spend together at ECARES. When I arrived in 2004, you made it incredibly easy for me to integrate and feel at ease in the new environment. I will always remember our football matches on the corridor that helped to briefly relax from seemingly irresolvable problems. In particular, I would like to thank Paolo with whom I have spend an amazing amount of invaluable time in the last few years. I learned a lot from your well thought-out opinions and your incredible knowledge about Jazz!

Even though further away, also Martin, Clivia, Anna, Andre, Simone, Andrea, Nils, Julia, Verena and many others were tremendously important to me in all this time. Our discussions have always helped me a lot to question myself and what I was doing. Honestly, I had never imagined that it would be so difficult for me to talk about my work, my research projects and ideas using ’normal’ words that are also comprehensible to people less familiar with the literature. I thank you for your patience in all those situations in which I got lost in my own explanations. In particular, I would like to thank Andre and Simone with whom I share deep and confiding friendships that started in Maastricht. Andre, I am truly glad that we met between the supermarket shelfs of the Edah in 1997 and have been able to cultivate our friendship ever since. Simone, I very much hope that we always manage to live in the same city from time to time.

Furthermore, I would like to thank my parents and my sister who always greatly supported me. Without your help and trust I would not have been able to accomplish this thesis.


Last but not least, I would like to thank my girlfriend Sophia who had the strength and endurance to continuously overcome the distance between Cologne and Bruxelles. I am unbelievably happy to have you and am looking forward to our new life in Copenhagen.


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