We develop a multi-agent framework based on probabilistic cellular automata theory to describe off-equilibrium dynamics … on the other players rationality is addressed within our multi-agent framework. We find that, if costs/payoffs act as …

Rationality of early release data is typically tested using linear regressions. Thus, failure to reject the null does … against data rationality for output and prices, but not for money. …

importance of particular forms of definitional change which we call 'definitional breaks', and the rationality of early releases … of economic variables. An important feature of our rationality tests is that they are based solely on the examination of …

This paper investigates the extent to which differences in information costs can explain the equity home bias puzzle … that–if cost functions are convex–the expected size of the equity home bias in terms of differences in invested amounts is … suggests that the information cost explanation accounts only for a small fraction of the observed equity home bias. …

Given any observed demand behavior by means of a demand function, we quantify by how much it departs from rationality … correcting matrix that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative … semidefiniteness). A useful classification of departures from rationality is suggested as a result. Variants, examples, and …

underlying Slutsky matrix norm (SMN) and some popular discrete revealed preference (RP) measures of departures from rationality …, such as the Afriat index. We show that testing rationality in the SMN aproach with finite data is equivalent to testing it … under the RP approach. We propose a way to "summarize" the departures from rationality in a systematic fashion in finite …

theory environments with finite data. We propose a new behavioral axiom, Acyclic Enticement (AE), that requires the …

behavior of the home bias - an initial plateau before 1985, then a decrease until 1994 followed by stabilization on another … home bias until its steady state. In the long run, the home bias remains large due to the interaction of the optimal … explanatory variables, we are able to explain at least 46.8% of the variation of the home bias for 19 developed countries from …