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How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality approach in economics do not hold? Do human beings optimize, or can they? Several decades of research have shown that people possess a toolkit of heuristics to make decisions under...
Persistent link: https://www.econbiz.de/10011926917
-report “what they think is the morally right thing to do” does not only increase pro-sociality in the choice immediately after, but …
Persistent link: https://www.econbiz.de/10012900728
The purpose of this study is to explore the link between imagine-self perspective-taking and rational self-interested behavior in experimental normal-form games. Drawing on the concept of sympathy developed by Adam Smith and further literature on perspective taking in games, we hypothesize that...
Persistent link: https://www.econbiz.de/10011761459
Economic analysis has had a powerful influence on legal theory and policymaking. Based on the premise that people are rational maximizers of their own utility, economic analysis has a fairly successful record in correctly predicting human behavior in all spheres of life. This success is...
Persistent link: https://www.econbiz.de/10012899515
compromise effect refers to the tendency of individuals to choose an intermediate option in a choice set, while the attraction … effect refers to the tendency to choose an option that dominates some other options in the choice set. This paper argues that … both effects may result from an individual's attempt to overcome the difficulty of making a choice in the absence of a …
Persistent link: https://www.econbiz.de/10011599458
We introduce and study the problem of manipulation of choice behavior. In a class of two-stage models of decision … framework, which overlaps with two existing models of choice under cognitive constraints, we provide a complete answer to this … question. -- attention ; choice function ; revealed preference ; satisficing ; threshold …
Persistent link: https://www.econbiz.de/10009312203
Economic experiments conducted in laboratories employing an induced-values methodology can report on allocative efficiencies observed. This methodology is limited by requiring the experimenter to know subjects' motivations, an impossibility in field experiments. Allocative efficiency implies a...
Persistent link: https://www.econbiz.de/10009314483
decision making, in which the primitive objects of choice are syntactic programs. We show that if the DM's preference relation … on objects of choice satisfies appropriate axioms, then we can find states, outcomes, and an embedding of the programs …
Persistent link: https://www.econbiz.de/10009733830
We use quantifiers and selection functions to generalize the classical economic approach to choice. Our framework …
Persistent link: https://www.econbiz.de/10011490505
An evolutionary perspective on economic behavior has to account for the influences that the human genetic endowment has on the choices the agents make. Likely to have been fixed in times of fierce selection pressure, this endowment is presumably adapted to the living conditions of early humans....
Persistent link: https://www.econbiz.de/10008758980