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deviation (in beliefs, utility, or perceived prices) is within e of expected utility theory. The number e can then be used as a … distance to the theory. We apply our methodology to three recent large-scale experiments. Many subjects in those experiments …
Persistent link: https://www.econbiz.de/10012892237
This paper presents novel evidence for the prevalence of deviations from rational behavior in human decision making – and for the corresponding causes and consequences. The analysis is based on move-by-move data from chess tournaments and an identification strategy that compares behavior of...
Persistent link: https://www.econbiz.de/10012831655
We show that ambiguity aversion increases the value of a statistical life as soon as the marginal utility of wealth is higher if alive than dead. The intuition is that ambiguity aversion has a similar effect as an increase in the perceived baseline mortality risk, and thus operates as the "dead...
Persistent link: https://www.econbiz.de/10010264356
We develop a theory of interstate conflict in which the degree of genealogical relatedness between populations has a …
Persistent link: https://www.econbiz.de/10010266016
The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences …-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the ?bounded rationality … a part of the rationality assumption. We conclude with some remarks on handling the problems of ?free will? as well as …
Persistent link: https://www.econbiz.de/10010272873
We ask three questions. First, do election systems differ in how they translate physical attractiveness of candidates into electoral success? Second, do political parties strategically exploit the "beauty premium" when deciding on which candidates to nominate, and, third, do elected MPs use...
Persistent link: https://www.econbiz.de/10012833726
results do not arise from measurement error or nonrandom sample selectivity. They are consistent with econometric theory about …
Persistent link: https://www.econbiz.de/10013323870
Extreme weather events have significant adverse costs for individuals, firms, communities, regional, and national economies. Extreme Event Attribution (EEA), a methodology that examines the degree to which anthropogenic greenhouse gas emissions had changed the occurrence of specific extreme...
Persistent link: https://www.econbiz.de/10014242787
We examine the various senses in which economist use the term “rationality” and then outline some of the commonly drawn …
Persistent link: https://www.econbiz.de/10011794211
consistent in revealing that groups behave closer to the game-theoretical assumption of rationality and selfishness than …
Persistent link: https://www.econbiz.de/10010280824