This paper apportions responsability for inefficency in a market for state contingent claims between market makers and traders. We specifically examine the origins of a frequently observed distortion in the market for bets in horseraces- the favorite- longshot bias. Previous studies rationalise...

This paper analyzes variable-population social-evaluation principles in a framework where outcomes are uncertain. In a static model, we provide characterizations of expected-utility versions of Critical-Level Generalized Utilitarian rules.

When "n" individuals satisfy the axioms of subjective expected utility (SEU) theory and these individuals' probabilities or/and utilities are sufficiently diverse, it is impossible to aggregate the individuals' preferences into a (n+1)-preference which is both Paretian and in agreement with SEU...

Behavioural Economics’ milestones, Endowment Effect and Loss Aversion, have been recognized as ‘well documented,’ ‘robust,’ and ‘important’ even by the critics. But well documented, robust, and important what? Are these stylized facts, theoretical constructs, or psychological...

The relationship between breakthrough and incremental innovation remains one of the more important issues in innovation theory and in national innovation policy. Using a comparative historical approach, in this paper, we analyze the rise and fall of Germany as a science and innovation leader of...

In the course of the first 45 years of India’s post Independence development, the focus of scientific activity was changed: from that of a science of raw material extraction, oblivious of any industrial imperative, to a science of material production, aimed at inducing technological awareness...

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Innovation in the services sector has not received much attention in Malaysia though, as the dominant sector, its potential role in the innovation-driven economy as envisioned by the New Economic Model is immense. This paper draws from data sourced from a national-level innovation survey of...