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Rationality is not consistency
Caliari, Daniele - 2023
We challenge the standard definition of economic rationality as consistency by making use of a novel distinction … evidence raises doubts about the choice of language that equates consistency with rationality in economics. … between axioms of decision theory: consistency and preference axioms. We argue that this distinction has been overlooked by …
Persistent link: https://www.econbiz.de/10014323610
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On rational choice and the representation of decision problems
Oliva, Paulo; Zahn, Philipp - In: Games 12 (2021) 4, pp. 1-21
In economic theory, an agent chooses from available alternatives-modeled as a set. In decisions in the field or in the lab, however, agents do not have access to the set of alternatives at once. Instead, alternatives are represented by the outside world in a structured way. Online search results...
Persistent link: https://www.econbiz.de/10012698098
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Imagine-self perspective-taking and rational self-interested behavior in a simple experimental normal-form game
Karbowski, Adam; Ramsza, Michał - 2017
be played due to not full rationality of the opponents or their specific not self-interested motivation. However …
Persistent link: https://www.econbiz.de/10011761459
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Reciprocity in dynamic employment relationships
Fahn, Matthias - 2020
This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how “direct” performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over...
Persistent link: https://www.econbiz.de/10012241077
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Anger and strategic behavior: a level-k analysis
Castagnetti, Alessandro; Proto, Eugenio - 2020
Anger is an important driver in shaping economic activities, particularly in instances that involve strategic interactions between individuals. Here we test whether anger impairs the capacity to think strategically, and we analyze the implications of our result on bargaining and cooperation...
Persistent link: https://www.econbiz.de/10012287037
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The reciprocity in dynamic employment relationships
Fahn, Matthias - 2020
This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how "direct" performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over the...
Persistent link: https://www.econbiz.de/10012254054
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Cooperation and Coordination in Cultures with Age-Based Social Hierarchies
Chao, Matthew; Shin, Euncheol - 2022
Hierarchy plays an integral role in organizational structure and practices, as well as in society more generally. In Confucian-influenced cultures, and especially in South Korea, social hierarchies are often based on age, and age dynamics can therefore influence social decision-making and...
Persistent link: https://www.econbiz.de/10014030466
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Cheap Talk with the Bayesian Truth Serum
Lee, Jae Joon - 2023
Biased responses in survey studies could seriously harm and mislead our economic decision-making. To mitigate survey response bias, we suggest an alternative way of combining two existing strategies, cheap talk and the Bayesian Truth Serum (BTS). In our three proof-of-concept experiments, we...
Persistent link: https://www.econbiz.de/10014343660
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Rationally Misplaced Confidence
Lemoine, Derek - 2019
I show that persistent underconfidence and overconfidence each arise from the combination of Bayesian learning about one's own abilities and rationally choosing to exert more effort when more confident. If an agent believes that greater effort reliably improves outcomes, then the agent learns...
Persistent link: https://www.econbiz.de/10012899806
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The Survival Value of Assuming Others to Be Rational
Stennek, Johan - 2000
I study the evolution of rationality, using an indirect evolutionary approach, in which nature selects a decision …-making procedure, and the procedure chooses actions in matching-games. The main result is that in order for (knowledge of) rationality …
Persistent link: https://www.econbiz.de/10014150983