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remedy for these shortcomings by developing a dynamical model of procedurally rational decision making. The basic idea of the … model is a feedback loop between experienced utility, decision utility, and activities. In applications of the model, I show …
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of needs strengthens economic models, by developing a decision-making framework for well-being assessment and choice …
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management position. However, if non-contractible managerial decision rights give rise to private benefits and preference … misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private … managerial decision rights and performance-based promotions leads to a situation often referred to as the Peter principle …
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-standard preferences, non-standard beliefs, and non-standard decision-making) and the marketing mix instruments (i.e., product, price …
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Sunk costs for R&D are an important determinant of the level of innovation in the economy. In this paper I recover them using a Markov equilibrium framework. The contribution is twofold. First, a model of industry dynamics which accounts for selection into R&D, capital accumulation and...
Persistent link: https://www.econbiz.de/10003904403
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This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search frictions, both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments. The associated holdup problem depends on market...
Persistent link: https://www.econbiz.de/10003875985