Empirical findings of the behaviour of small firms in several countries and of large firms in two countries, indicate that risk taking by some businesses differs from that indicated by the Prospect Theory. Enterprises headed by entrepreneurs are more risk-taking/risk-neutral in the area of...

Animal Spirits (2009) is a timely and widely appreciated work focusing on the need to incorporate behavioral factors in macroeconomic analysis that draws on a famous reference of John Maynard Keynes. Nonetheless, it has a number of limitations. Those in several chapters are noted. Most...

The explanation of bounded rationality in terms of satisficing has been received with skepticism, but Simon's claim that satisficing reflects aspirations and their adaptation could help resolve the matter, particularly taking account of the amplifications introduced by Selten to include...

This article by Herbert Simon provided one of the leading alternatives to the traditional model of rational profit-maximizing behavior, bringing to the forefront of academic attention several of the key issues on which behavioral economics would eventually focus. Introduction by Lindsay...