We present and experimentally test a theoretical model of majority threshold determination as a function of voters’ risk preferences. The experimental results confirm the theoretical prediction of a positive correlation between the voter's risk aversion and the corresponding preferred majority...

According to a common opinion in economic literature, the National Income Test provides a necessary condition for potential Pareto dominance. This paper demonstrates that this statement is true in pure-exchange economies, but, in general, false in production economies.

The notion of rationality is examined with respect to its use in economics. Three kinds of rationality are distinguished. First, economics is qualified as rational when its nomological-deductive content is taken into account. Second, agents and actions are qualified as rational if a theory of...

Non free-disposal equilibrium is examined mainly using the notion of weak equilibrium (i.e., consumers' budget constraints are equalities by definition). The existence of a competitive equilibrium and its Pareto-optimality are investigated both for a pure-exchange economy and for a production...

Decisions, Games and Markets is designed to stimulate new developments in decision theory, game theory and general equilibrium theory, as well as in their applications to economics. The book is divided into three parts - Decision Theory, Game Theory, and the Theory of Markets. Though its...