This paper models a near-rational agent who chooses from a set of feasible alternatives, subject to a cost function for precise decision-making. Unlike previous papers in the "control costs" tradition, here the cost of decisions is explicitly interpreted in terms of time. That is, by choosing...

Since business activities are generally subject to uncertainties, dealing with risk is essential. Principals are generally assumed to maximize their expected value and therefore act in a risk-neutral manner by diversifying their portfolio. Agents, however, often deviate from maximizing their...

The problem of ex ante choice between conflict situations is studied in an axiomatic model where individuals know the available surplus but are ignorant of the exact bargaining procedure. Furthermore, allowing for side-payments in a single good, a bargaining solution that is immune to ordinal...