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The Evolution of Our Preferences: Evidence from Capuchin-Monkey Trading Behavior

Chen, M. Keith; Lakshminarayanan, Venkat; Santos, Laurie - Cowles Foundation for Research in Economics, Yale University - 2005

and risky choices. We show that standard price theory does a remarkably good job of describing capuchin purchasing …

Persistent link: https://www.econbiz.de/10005087355

Randomized Sign Test for Dependent Observations on Discrete Choice under Risk

Bracha, Anat; Gray, Jeremy; Ibragimov, Rustam; Nadler, Boaz - Cowles Foundation for Research in Economics, Yale University - 2005

This paper proposes nonparametric statistical procedures for analyzing discrete choice models of affective decision making. We make two contributions to the literature on behavioral economics. Namely, we propose a procedure for eliciting the existence of a Nash equilibrium in an intrapersonal,...

Persistent link: https://www.econbiz.de/10005087369

Believe and Let Believe: Axiomatic Foundations for Belief Dependent Utility Functionals

Yariv, Leeat - Cowles Foundation for Research in Economics, Yale University - 2001

A large body of experimental data demonstrates that people's beliefs influence their well-being beyond the indirect effect through the actions taken. I present a model that incorporates beliefs into an agent's utility function. The paper provides axiomatic foundations for a special class of...

Persistent link: https://www.econbiz.de/10005593381

Risky Curves: From Unobservable Utility to Observable Opportunity Sets

Friedman, Daniel; Sunder, Shyam - Cowles Foundation for Research in Economics, Yale University - 2011

useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

Persistent link: https://www.econbiz.de/10009251218

Revealed Preferences for Risk and Ambiguity

Brown, Donald J.; Erdman, Chandra; Ling, Kirsten; … - Cowles Foundation for Research in Economics, Yale University - 2010

economic preferences for risk and ambiguity are derived from estimation of a mixed logit model, where the choice probabilities … are functions of two random effects: the proxies for risk-aversion and ambiguity-aversion. Our principal empirical finding … is that we cannot reject the null hypothesis that risk and ambiguity are independent in economic choice under uncertainty …

Persistent link: https://www.econbiz.de/10008692925

Affective Utilities: A Rational Theory of Optimistic Bias in Asset Markets

Bracha, Anat; Brown, Donald J. - Cowles Foundation for Research in Economics, Yale University - 2013

of the bears and the purchases of the bulls are balanced." We propose a descriptive theory of finance explicating Keynes …, defined as the composition of the investor's attitudes for risk and her attitudes for ambiguity. Bulls and bears are defined …

Persistent link: https://www.econbiz.de/10010895651

Breach, Remedies and Dispute Settlement in Trade Agreements

Maggi, Giovanni; Staiger, Robert W. - Cowles Foundation for Research in Economics, Yale University - 2009

We provide a simple but novel model of trade agreements that highlights the role of transaction costs, renegotiation and dispute settlement. The model allows us to characterize the appropriate remedy for breach and whether the agreement should be structured as a system of "property rights" or...

Persistent link: https://www.econbiz.de/10008577752

Fiat Money and the Natural Scale of Government

Shubik, Martin; Smith, Eric - Cowles Foundation for Research in Economics, Yale University - 2005

The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents' economic strategies predictable from knowledge of...

Persistent link: https://www.econbiz.de/10005463905

Does Prison Harden Inmates? A Discontinuity-based Approach

Chen, M. Keith; Shapiro, Jesse M. - Cowles Foundation for Research in Economics, Yale University - 2003

Some two million Americans are currently incarcerated, with roughly six hundred thousand to be released this year. Despite this, little is known about the effects of confinement conditions on the post-release lives of inmates. Focusing on post-release criminal activity, we identify the causal...

Persistent link: https://www.econbiz.de/10005593393

Commodity Money and the Valuation of Trade

Smith, Eric; Shubik, Martin - Cowles Foundation for Research in Economics, Yale University - 2005

In a previous essay we modeled the enforcement of contract, and through it the provision of money and markets, as a production function within the society, the scale of which is optimized endogenously by labor allocation away from primary production of goods. Government and a central bank...

Persistent link: https://www.econbiz.de/10005593614