Showing 1 - 10 of 20
This paper presents new data on entrepreneurs' self-described decision processes when choosing where to locate, based on scripted interviews with business owners. Consideration sets and quantities of information acquisition are surprisingly small, especially among entrepreneurs who are...
Persistent link: https://www.econbiz.de/10010869684
This paper advances the claim that ignoring relevant information is sometimes consistent with good decision making. Although that finding is not new, the argument presented here is. In contrast with bounded rationality models, the decision-making model in this paper presupposes no cognitive...
Persistent link: https://www.econbiz.de/10005753894
This paper advances the claim that ignoring relevant information is sometimes consistent with good decision making. Although that finding is not new, the argument presented here is. In contrast with bounded rationality models, the decision-making model in this paper presupposes no cognitive...
Persistent link: https://www.econbiz.de/10008538915
The emergence of behavioural economics has provided new insights into economic and business phenomena by integrating elements of economic theory and experimental psychology. So far, the behavioural economics research agenda has concentrated on the empirical validity of foundational assumptions,...
Persistent link: https://www.econbiz.de/10008756504
This article describes the emerging subfield known as behavioral economics, which borrows from psychology, empirically tests assumptions used elsewhere in economics, and provides theories that aim to be more realistic and closely tied to experimental and field data. Highlights from the...
Persistent link: https://www.econbiz.de/10008756513
For a research program that counts improved empirical realism among its primary goals, it is surprising that behavioral economics appears indistinguishable from neoclassical economics in its reliance on “as-if” arguments. “As-if” arguments are frequently put forward in behavioral...
Persistent link: https://www.econbiz.de/10008756521
Under the assumption of perfect competition, it is difficult to avoid the conclusion that abandoned properties and long undeveloped neighborhoods remain that way because they are unprofitable. In contrast, this paper introduces a model in which firms systematically overlook neighborhoods with...
Persistent link: https://www.econbiz.de/10008693537
Is it better to apply effort to increase personal consumption, or control what one wants? The model presented here provides a characterization of demand for self control, namely, its responsiveness to price and risk. Unlike most other models of self control, the model does not identify self...
Persistent link: https://www.econbiz.de/10008693565
Kacelnik, Schuck-Paim and Pompilio (this volume, p. 377) show that rationality axioms from economics are neither necessary nor sufficient to guarantee that animal behavior is biologically adaptive. To illustrate that biological adaptiveness does not imply conformity with the consistency axioms...
Persistent link: https://www.econbiz.de/10008693567
Decisions about location choice provide an opportunity to compare the predictions of optimization models, which require exhaustive search through very large choice sets, against the actual decision processes used by entrepreneurs choosing where to allocate investment capital. This paper presents...
Persistent link: https://www.econbiz.de/10008693572