This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its …

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 …

learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …

with disdain for work. We propose an economic theory of preference formation where both the divergence of attitudes across … social classes and the ensuing reversal of economic fortunes are equilibrium outcomes. In our theory, parents shape their …

considerations moves behavior toward traditional economic rationality in UG, PD, and DG. Despite entering the study with higher …