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Carsten K.W. De Dreu and Jörg Gross

This chapter integrates personality psychology with the empirical investigation of economic preferences and choice. We begin with a classic question in psychology: when and how can we identify behavior as emanating from stable personality differences, from situational pressures, or some combination? Next, we review the psychometric methods used in personality psychology, with an emphasis on personality variables captured in the Big Five theory of personality and the biobehavioral approach/avoidance system that have been robustly shown to systematically influence economic decision making. We finally examine how the methodology of personality psychology can be applied in the realm of economic preferences and its measurement.