This paper is concerned with the axiomatic foundation of the revealed preference theory. Many well-known results in the literature rest upon the ability to choose over budget sets that contain only 2 or 3 elements. This paper shows that for any given choice function, many of the famous...

This paper contributes to the axiomatization of additive rules for ranking sets of objects under the psychological principle of categorization. Firstly we proceed with the case where the elements in the sets are categorized into at most three groups, namely good (with value 1), neutral (with...

Employers want motivated and productive employees. Are there ways to increase employee motivation without relying solely on monetary incentives, such as pay-for-performance schemes? One tool that has shown promise in recent decades for improving worker performance is setting goals, whether they...

People's desire for fair transactions can play an important role in negotiations, organizations, and markets. In this paper, we show that markets can also shape what people consider to be a fair transaction. We propose a simple and generally-applicable model of path-dependent fairness...

Almost all important decisions in people’s lives entail risky and delayed consequences. Regardless of whether we make choices involving health, wealth, love or education, almost every choice involves costs and benefits that are uncertain and materialize over time. Because risk and delay often...

Social media offer many opportunities for organizations but present, at the same time, many challenges, too. Particular attention must be paid to the new patterns of behavior emerging in organizations. We argue that these patterns derive both from the technical characteristics of the virtual...

We provide an axiomatic approach to a belief formation process in an informational environment characterized by limited, heterogenous and differently precise information. For a list of previously observed cases an agent needs to express her belief by assigning probabilities to possible outcomes....

This paper analyzes how apprenticeship training, i.e., work-based secondary education, affects personality traits compared to full-time school-based vocational or general education. Employing an instrumental variable approach that exploits the regional differences in the relative weight of...

We study deterrence in sequential move conflicts, modeled as a contest. We bias the model in favor of peace by assuming that under complete information deterrence is achieved and peace prevails. We show that under incomplete information about states' types (resolve) the chances of deterrence...

An agent wants to derive her belief over outcomes based on past observations collected in her database (memory). There is well establish evidence in the psychology and marketing literature that agents consistently fail (or choose not) to process all available information. An agent might be...