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Can Financial Education Extend the Border of Bounded Rationality?
Greenberg, Doron - 2016
When choosing a particular alternative from a number of financial assets, risk is an important feature. According to the classic Capital Assets Pricing Model (CAPM), we would expect to receive a positive correlation between risk and return of financial assets. However, studies show that...
Persistent link: https://www.econbiz.de/10013002413
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Behavioral Macroeconomics via Sparse Dynamic Programming
Gabaix, Xavier - 2015
This paper proposes a tractable way to model boundedly rational dynamic programming. The agent uses an endogenously simplified or "sparse" model of the world and the consequences of his actions, and act according to a behavioral Bellman equation. The framework is applied to some of the canonical...
Persistent link: https://www.econbiz.de/10013010008
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Uncertainty under hyperbolic discounting : the cost of untying your hands
Alcocer, Christian Diego; Ortegón, Julián; Roa, Alejandro - In: Journal of economics, finance & administrative science 24 (2019) 48, pp. 176-193
Purpose The relevance of present consumption bias on personal finance has been confirmed in several studies and has important theoretical and practical implications. It has important, measurable implications when analyzing commitment or self-control, adherence to healthy habits (e.g. exercising...
Persistent link: https://www.econbiz.de/10012128806
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Experimental stock market dynamics : excess bids, directional learning, and adaptive styleinvesting in a call-auction with multiple multiperiod lived assets
Selten, Reinhard; Neugebauer, Tibor - 2018
We study the behavioral dynamics of limit orders in simultaneous experimental call-auction markets with multiple multiperiod lived securities. As analytical decision variable we use excess bids; the number of submitted bids minus the number of offers. The feedback variable is (excess) return....
Persistent link: https://www.econbiz.de/10012233240
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Evolutionary economics and household behavior
Horioka, Charles - In: The Philippine review of economics : a joint … 51 (2014) 2, pp. 67-82
Persistent link: https://www.econbiz.de/10010528438
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Slutsky matrix norms and the size of bounded rationality
Aguiar, Victor H.; Serrano, Roberto - 2014
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 …
Persistent link: https://www.econbiz.de/10010241984
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Assumptions of rationality in political marketing : the case of the republican autopsy
Bendle, Neil T.; Cotte, June - In: Journal of nonprofit & public sector marketing 28 (2016) 1, pp. 66-83
Persistent link: https://www.econbiz.de/10011458067
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Slutsky matrix norms and revealed preference tests of consumer behaviour
Aguiar, Victor H.; Serrano, Roberto - 2015 - This version: January 2015
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 …
Persistent link: https://www.econbiz.de/10010472595
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Evolutionary economics and household behavior
Horioka, Charles - 2014
neoclassical assumption of selfish utility maximization with bounded rationality and satisficing and by incorporating the reaction …
Persistent link: https://www.econbiz.de/10010390070
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Evolutionary economics and household behavior
Horioka, Charles - 2014
neoclassical assumption of selfish utility maximization with bounded rationality and satisficing and by incorporating the reaction …
Persistent link: https://www.econbiz.de/10010390395