This paper develops a model of individual adjustment subject to mistakes. In this case when mistakes are assumed i.i.d., this process produces a probability distribution of agents decision whose evolution is determined by Fokker-Planck equation. This distribution converges to the unique,...

We study a class of boundedly rational choice functions, namely two-stage choosers, which operate as follows. The decision maker uses two criteria in two stages to make a choice. First she shortlists the top-2 alternatives, i.e. two ?nalists, according to one criterion. Next, she chooses the...

This paper estimates the causal e ect of perceived job insecurity - i.e. the fear of involuntary job loss - on health in a sample of 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries where...

Classical deÖnitions of complementarity are based on cross price elasticities, and so they do not apply, for example, when goods are free. This context includes many relevant cases such as online newspapers and public attractions. We look for a complementarity notion that does not rely on price...

We characterize the following choice procedure. The decision maker is endowed with a preference and a similarity - a reflexive binary relation over alternatives. In any choice problem she includes in her choice set all options that are similar to her most preferred feasible alternative. Hence an...

Students are very interested in lecture examples and class exercises involving data connected to the maiden voyage and the sinking of the liner Titanic. Information on the passengers and their fate can be used to explore relationships between various tests for differences in survival rates...

In this paper we report the findings of an evaluation of the influence of collaborative problem-solving (CPS hereafter) on student attitudes and learning in economics tutorials.

In answer to the long-standing question, what kinds of knowledge and skills should economics majors master, Lee Hansen has advocated a proficiencies approach. According to this approach, the teaching and learning of economics undergraduates should be based on the attainment of (six) specified...