Investors systematically deviate from rationality when making financial decisions, yet the mechanisms responsible for these deviations have not been identified. Using event-related fMRI, we examined whether anticipatory neural activity would predict optimal and suboptimal choices in a financial...

An important question about social norms is whether they are created to increase welfare; I address it by examining the characteristics of tipped and non-tipped occupations. Tipping prevalence is negatively correlated with worker’s income and consumer’s monitoring ability and positively with...

Reference: Challenge, January/February, 1979

Economists often perceive the “ideological beliefs“ held by political actors as obstacles to rational policy-making. In contrast, it is argued that ideologies have characteristics that appear desirable in policy- making in that they allow political actors to credibly commit themselves to...

This article presents a formalization of knowledge based on a connectionist model of a firm's structure. Transaction costs are not ignored, but integrated with the knowledge-based approach. A numerical example on the canonical comparison of "Japanese" versus "American" organizational structures...

Shafer's evidence theory is a branch of the mathematics of uncertain reasoning that allows for novel possibilities to be conceived by a decision-maker. Many of its findings exhibit striking similarities with an alternative decision theory purported by Shackle in the 1950s, before expected...

Investment decision-making is modeled by means of a Kohonen neural net, where neurons represent firms. This is done in order to model investments in novel fields of economic activity, that according to this model are carried out when firms recognize the emergence of a new technological pattern....

We conduct experiments of a cheap-talk game with incomplete information in which one sender type has an incentive to misrepresent her type. Although that Sender type mostly lies in the experiments, the Receiver tends to believe the Sender's messages. This confirms ``truth bias'' reported in...

Laboratory subjects repeatedly played one of two variations of a simple two-person zero-sum game of ``hide and seek.'' Three puzzling departures from the prescriptions of equilibrium theory are found in the data: an asymmetry related to the player's role in the game; an asymmetry across the game...