Showing 1 - 10 of 17
term Knightian decision theory. This theory includes a concept of uncertainty aversion, a behavioral property that makes …
Persistent link: https://www.econbiz.de/10005463850
A theory of choice under uncertainty is proposed which removes the completeness assumption from the Anscombe-Aumann formulation of Savage's theory and introduces an inertia assumption. The inertia assumption is that there is such a thing as the status quo and an alternative is accepted only if...
Persistent link: https://www.econbiz.de/10004990797
The theory of choice proposed in "Knightian Decision Theory, Part I" is here applied to intertemporal problems. An … future states and could also ignore unlikely contingencies. A decision maker making such calculations would behave much like …
Persistent link: https://www.econbiz.de/10005762716
Decision theory and game theory are extended to allow for information processing errors. This extended theory is then …
Persistent link: https://www.econbiz.de/10005249171
The aggregation problem in demand analysis and exchange equilibrium is studied by putting restrictions on the shape of the distribution of the agents' characteristics. This is done by exploiting the finite dimensional linear structure induced on demand functions by affine transformations of the...
Persistent link: https://www.econbiz.de/10005463848
This paper extends the axiomatic theory of revealed preference to choices that are generated by the maximization of a strictly concave and strictly monotone function subject to nonlinear constraint sets. I characterize finite sets of observations on choice behavior that are consistent with the...
Persistent link: https://www.econbiz.de/10005249162
Afriat's original method of proof is restored by using the minmax theorem.
Persistent link: https://www.econbiz.de/10011196016
Cognitive dissonance is one of the most influential theories in psychology, and its oldest experiential realization is choice-induced dissonance. In contrast to the economic approach of assuming a person's choices reveal their preferences, psychologists have claimed since 1956 that people alter...
Persistent link: https://www.econbiz.de/10005087405
We prove that the Strong Axiom of Revealed Preference tests the existence of a strictly quasiconcave (in fact, continuous, generically C(infinity), strictly concave, and strictly monotone) utility function generating finitely many demand observations. This sharpens earlier results of Afriat,...
Persistent link: https://www.econbiz.de/10005593374
reframing of the ask amount increases donors and amount donated relative to daily reframing. A second experiment targeted to …
Persistent link: https://www.econbiz.de/10010895643