This paper deals with repeated decision problems which are similar to the task of guessing the color outcomes of five independent spinnings of a roulette wheel, 60% of whose slots are covered in red and 40% in white, where each correct guess yields a prize of 1$.

This note provides an axiomatic derivation of a case-based decision rule. It shows that, if preferences orders over available acts in various contexts satisfy certain consistency requirements, then these orders can be numerically represented by maximizationof a similarity-weighted utility function.

If the allocations of a differential information economy are defined as incentive compatible state -contingent lotteries over consumption goods, competitive equilibrium allocations exist and belong to the (ex-ante incentive) core. Furthermore, any competitive equilibria allocation can be viewed...

The paper argues for the formal investigation of conditions under which that preference reltions are definable in various simple languages. An example of such an investigation is given.

The paper considers a two-Country model of overlapping generations heterogenous economies with intergeneration transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the transitory and long effects of capital markets integration.

"Hyperbolic discount functions are characterized by a relatively high discount rate over short horizons and a relatively low discount rate over long horizon" [Laibson 1997, p. 445]. In this theoretical note, we show that individuals hyperbolically discount marginal utility from money when they...

In many decision scenarios, one has to choose an element from a set S given some reference point e. For the case where S is a subset of the Euclidean space , we axiomatize the choice method that selects the point in S that is closet to e.

The main result of the paper is that policy reversals are more likely floowing realization of extreme and relatively unlikely values of parameters that map policy choice into outcomes. A corollary to this result is that policy reversals occur infrequently.