Similar Search Results

From full to bounded rationality : the limits of unlimited rationality

Güth, Werner; Kliemt, Hartmut - 2001

choice making. We illustrate why this role is not being fulfilled well by standard models of full rationality and that … theories of bounded rationality are needed not only for better predictions, but also for developing better advice. Our main … point is that one cannot succeed here without studying how theories of bounded rationality causally influence the behavior …

Persistent link: https://www.econbiz.de/10009612562

Co-evolution of preferences and information in simple games of trust

Güth, Werner; Kliemt, Hartmut; Peleg, Bezalel - 1998

In standard rational choice modelling decisions are made according to given information and preferences. In the model presented here the 'information technology' of individual decision makers as well as their preferences evolve in a dynamic process. In this process decisions are made rationally...

Persistent link: https://www.econbiz.de/10009578580

Combining rational choice and evolutionary dynamics : the indirect evolutionary approach

Königstein, Manfred; Müller, Wieland - 1999

that are well known from game theory and evolutionary game theory to solve these games. For illustration we include two …

Persistent link: https://www.econbiz.de/10009580475

Learning to like what you have : explaining the endowment effect

Huck, Steffen; Kirchsteiger, Georg; Oechssler, Joerg - 1997

The endowment effect describes the fact that people demand much more to give up an object than they are willing to spend to acquire it. The existence of this effect has been documented in numerous experiments. We attempt to explain this effect by showing that evolution favors individuals whose...

Persistent link: https://www.econbiz.de/10009657123

Private information, risk aversion, and the evolution of market research

Güth, Sandra; Güth, Werner; Müller, Wieland - 2000

On a homogeneous oligopoly market informed sellers are fully aware of market demand whereas uninformed sellers only know the distribution. We first derive the market results when sellers are risk averse, similarly to Ponssard (1979) who assumed risk neutrality throughout. With the help of these...

Persistent link: https://www.econbiz.de/10009612010

Why firms should care for customers

Königstein, Manfred; Müller, Wieland - 2000

Adopting the indirect evolutionary approach, we show that it might be beneficial for firms on a heterogeneous market not only to care for their profits but also for their respective customers' welfare. -- evolutionary stability ; customer orientation ; heterogenous market ; duopoly

Persistent link: https://www.econbiz.de/10009612021

On the regulation of social norms

Kübler, Dorothea - 2000

A model is developed to understand how norms can be influenced by "norm entrepreneurs", e.g. lawmakers, government agencies, unions etc. Two instruments of influencing the dynamics of normfollowing behavior are analyzed, namely transforming the (monetary) incentives and changing the meaning or...

Persistent link: https://www.econbiz.de/10009583884

Markovian short rates in a forward rate model with a general class of Lévy processes

Küchler, Uwe (contributor) - 2003 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001919022

On Markovian short rates in term structure models driven by jump-diffusion processes

Gapeev, P. V. (contributor); Küchler, U. (contributor) - 2003 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001917033

Financial price fluctuations in a stock market model with many interacting agents

Horst, Ulrich - 2001

We consider a financial market model with a large number of interacting agents. Investors are heterogeneous in their expectations about the future evolution of an asset price process. Their current expectation is based on the previous states of their "neighbors" and on a random signal about the...

Persistent link: https://www.econbiz.de/10009613599