In a less widely known contribution, Béla Martos (1966, Hungarian Academy of Sciences) introduced a generalized notion of concavity that is closely related to what is nowadays known as r-concavity in the operations research literature, and that is identical to what is nowadays known as...

Economists have traditionally treated preferences as exogenously given. Preferences are assumed to be influenced by neither beliefs nor the constraints people face. As a consequence, changes in behaviour are explained exclusively in terms of changes in the set of feasible alternatives. Here we...

In economics there is presently an almost revolutionary development. The direct measurement of subjective welfare challenges traditional economics, inspires it, and opens new avenues for scientific research. The approaches and possibilities of an economic analysis of happiness are shown and...

People not only care about outcomes, they also value the procedures which lead to the outcomes. Procedural utility is a potentially important source of human well-being. This paper aims at introducing the concept of procedural utility into economics, and argues that it should be incorporated...

Research on happiness has produced valuable insights into the sources of subjective well-being that are of importance to economics. A major finding from this literature is that people exhibit a 'baseline' level of happiness that shows persistent strength over time. Here we explore the extent to...

Economics and psychology are both sciences of human behaviour. This paper gives a survey of their interaction. First, the changing relationship between the two sciences is discussed: while economics was once imperialistic, it has become a science inspired by psychological insights. In order to...

The Motivation Crowding Effect suggests that external intervention via monetary incentives punishments may undermine, and under different identifiable conditions strengthen, intrinsic motivation. As of today, the theoretical possibility of motivation crowding has been the main subject of...

Recent monetary models with explicit microfoundations are made tractable by assuming that agents have access to centralized markets after one round of decentralized trade. Given quasi-linear preferences, this makes the distribution of money degenerate which keeps the models simple but precludes...

Moderne Ökonomie und Sozialpsychologie beschäftigen sich beide mit der Erklärung menschlichen Verhaltens. Dieser Artikel gibt eine Übersicht über die Interaktion zwischen den beiden Wissenschaften. Zum einen werden einige grundlegende Aspekte dieser Beziehung diskutiert; zum anderen werden...

In many business transactions, in labor-management relations, in international conflicts, and welfare state reforms bargainers seem to hold strong entitlements that shape negotiations. Despite their importance, the role of entitlements in negotiations has not received much attention. We fill the...