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A major theme in behavioral economics focuses on experimental evidence that individuals learn from the choice problems they face and consequently violate the consistency requirements of revealed preference theory. Despite the experimental evidence, the testable implications of such contextual...
Persistent link: https://www.econbiz.de/10013001525
The paper proposes a choice-theoretic de nition of an unforeseen event and a model of behavior that accommodates such events. The analysis presumes an individual who is aware of their unawareness, which explains why all un- foreseen events in this paper are non-null. Relative to existing work,...
Persistent link: https://www.econbiz.de/10012936595
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