Selfish utilitarianism, neo-classical economics, the directive of short-term income maximization, and the decision tool of cost-benefit analysis fail to protect our species from the significant risks of too much consumption, pollution, or population. For a longer-term survival, humanity needs to...

The paper lists salient characteristics of the certainty theory of consumer choice and discusses the import of prominent empirical analyses of the theory. All of them reject the theory's empirical relevance which suggests that the theory is unfit to analyze consumer choice in an uncertain world....

This paper suggests that personal trust is best understood is a discursively constructed social relation that arises when interaction between people is governed by the norm of reciprocity (according to which one good turn deserves another and that people should treat others as they themselves...

In contrast with the "missing micro-foundations" argument against Keynes's macroeconomics, the paper argues that it is the present state of microeconomics that needs more solid "Keynesian foundations". It is in particular Keynes's understanding of investors' behaviour that can be fruitfully...

In contrast with the "missing micro-foundations" argument against Keynes’s macro­economics, the paper argues that it is the present state of microeconomics that needs more solid "Keynesian foundations". It is in particular Keynes’s understanding of investors’ behaviour that can be...

In soccer penalty kicks, goalkeepers choose their action before they can clearly observe the kick direction. An analysis of 286 penalty kicks in top leagues and championships worldwide shows that given the probability distribution of kick direction, the optimal strategy for goalkeepers is to...

The aim of the article is to study the relation between product innovation and its associated risk, particularly in the Brazilian manufacturing industry in the period of 1995-2005. A statistical model is developed based on the study realized by Bromiley (1991), seeking to identify whether...

In economics, the prevailing framework to explain preferences under uncerta- inty is the Expected Utility theory. Despite its widespread use, the Expected Utility theory is not free from problems. Experimental and empirical works shows that, in real life, the choices of individuals among risky...

We model a decision maker who anticipates being tempted but is also uncertain about what is normatively best. Our model is an extended version of Gul and Pesendorfer's (2001) with three time periods: in the ex ante period, the agent chooses a set of menus; in the interim period, she chooses a...

Precautionary saving typically refers to the additional investment in a risk free asset when exogenous labor income is risky versus certain. When risky income results endogenously from the investment in a risky asset, the meaning and characterization of precautionary saving change and far less...