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In a model of evolution driven by conflict between societies more powerful states have an advantage. When the influence of outsiders is small we show that this results in a tendency to hegemony. In a simple example in which institutions differ in their "exclusiveness" we find that these...
Persistent link: https://www.econbiz.de/10010950707
Harstad and Selten’s article in this forum performs a valuable service by highlighting the dominance of optimization-based models over boundedly rational models in modern microeconomics, and questioning whether optimization-based models are a better way forward than boundedly rational...
Persistent link: https://www.econbiz.de/10011129964
This paper studies the evolution of peoplesʼ models of how other people think – their theories of mind. This is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k times iterated best response to the uniform distribution. It is found that,...
Persistent link: https://www.econbiz.de/10011049877
For choice with deterministic consequences, the standard rationality hypothesis is ordinality, i.e., maximization of a … weak preference ordering. For choice under risk (resp. uncertainty), preferences are assumed to be represented by the … objectively (resp. subjectively) expected value of a von Neumann-Morgenstern utility function. For choice under risk, this implies …
Persistent link: https://www.econbiz.de/10014025530
This paper highlights a previously unnoticed property of commonly-used discrete choice models, which is that they …
Persistent link: https://www.econbiz.de/10013442105
Persistent link: https://www.econbiz.de/10012102359
We test the effectiveness of self-help peer groups as a commitment device for precautionary savings, through two randomized field experiments among 2,687 microentrepreneurs in Chile. The first experiment finds that self-help peer groups are a powerful tool to increase savings (the number of...
Persistent link: https://www.econbiz.de/10010821682
The paper suggests that casting the choice problem in terms of alternative time-consuming activities can foster the …. The first part emphasizes how mainstream, utility-based choice theory has eradicated "time" from the analysis, in contrast …
Persistent link: https://www.econbiz.de/10011200301
We propose an abstract method of systematically assigning a “rational” ranking to non-rationalizable choice data. Our … main idea is that any method of ascribing welfare to an individual as a function of choice is subjective, and depends on … an individual welfare functional as a mapping from stochastic choice functions into weak orders. A stochastic choice …
Persistent link: https://www.econbiz.de/10011043036
The paper suggests that casting the choice problem in terms of alternative time-consuming activities can foster the …. The first part emphasizes how mainstream, utility-based choice theory has eradicated "time" from the analysis, in contrast …
Persistent link: https://www.econbiz.de/10010485641