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Two-Stage Boundedly Rational Choice Procedures : Theory and Experimental Evidence
Manzini, Paola; Mariotti, Marco - 2021
We study and test a class of boundedly rational models of decision making which rely on sequential eliminative heuristics. We formalize two sequential decision procedures, both inspired by plausible models popular among several psychologists and marketing scientists. However we follow a standard...
Persistent link: https://www.econbiz.de/10013317410
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Testing Bounded Rationality Against Full Rationality in Job Changing Behavior
Contini, Bruno; Morini, Matteo - 2021
In this paper we question the hypothesis of full rationality in the context of job changing behaviour, via simple … forces of job change are future real wages and expected job quality. Bounded rationality suggests that individuals will … and between cells. Under full rationality the following are to be expected: high inter-cell mobility, large dispersion …
Persistent link: https://www.econbiz.de/10013316720
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A Model of Overconfidence
Weinberg, Bruce A. - 2009
People use information about their ability to choose tasks. If more challenging tasks provide more accurate information about ability, people who care about and who are risk averse over their perception of their own ability will choose tasks that are not sufficiently challenging. Overestimation...
Persistent link: https://www.econbiz.de/10013158056
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Econometric Explorations on Bounded Rationality : The Case of Job Changing Behavior
Contini, Bruno; Morini, Matteo - 2021
In this paper we question the hypothesis of full rationality in the context of job changing behavior, via simple … "rationality" of a positive tradeoff, lead towards the opposite direction of confounding good and bad options. Our explanation for … these findings is that people act on the basis of bounded rationality à la Simon. If our assessment is correct, the …
Persistent link: https://www.econbiz.de/10013317208
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Cognitive Ability, Character Skills, and Learning to Play Equilibrium : A Level-K Analysis
Gill, David - 2014
In this paper we investigate how cognitive ability and character skills influence behavior, success and the evolution of play towards Nash equilibrium in repeated strategic interactions. We study behavior in a p-beauty contest experiment and find striking differences according to cognitive...
Persistent link: https://www.econbiz.de/10013052550
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Incentive Complexity, Bounded Rationality and Effort Provision
Abeler, Johannes; Huffman, David; Raymond, Collin - 2023
rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to …
Persistent link: https://www.econbiz.de/10014347039
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How Darwinian Should an Economy Be?
Saint-Paul, Gilles - 2014
This paper studies aggregate dynamics in a cobweb model where learning takes place through a selection mechanism, by which more successful firms are replicated at a higher rate. The structure of the model allows to characterize analytically the aggregate dynamics, and to compute the effect on...
Persistent link: https://www.econbiz.de/10013042991
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Evolution and the Growth Process : Natural Selection of Entrepreneurial Traits
Galor, Oded - 2012
This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human...
Persistent link: https://www.econbiz.de/10013110853
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To See is to Believe : Common Expectations in Experimental Asset Markets
Cheung, Stephen L. - 2012
We challenge the recent claim that mispricing in the experimental asset markets introduced by Smith, Suchanek, and Williams (1988) is merely an artefact of confusion over declining fundamental value, and can be eliminated through appropriate training. We instead propose that when training is...
Persistent link: https://www.econbiz.de/10013099096
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Rational Students and Resit Exams
Kooreman, Peter - 2012
Resit exams – extra opportunities to do an exam in the same academic year – are widely prevalent in European higher education, but uncommon in the US. I present a simple theoretical model to compare rational student behavior in the case of only one exam opportunity versus the case of two...
Persistent link: https://www.econbiz.de/10013099740