Showing 1 - 10 of 144
The authors study the lack of necessity of the transitivity property when representing preference relations. Avoiding transitivity hypothesis, this work offers a vision about the modeling of consumer preference relations which are different from the classic one used in economics pedagogy. The...
Persistent link: https://www.econbiz.de/10013123896
There is much debate as to why economics students display more self-interested behavior than other students: whether homo economicus self-select into economics or students are instead “indoctrinated” by economics learning, and whether these effects impact on preferences or beliefs about...
Persistent link: https://www.econbiz.de/10013238389
Persistent link: https://www.econbiz.de/10001739597
Limits on consumer attention give firms incentives to manipulate prospective buyers’ allocation of attention. This paper models such attention manipulation and shows that it limits the ability of disclosure regulation to improve consumer welfare. Competitive information supply, from firms...
Persistent link: https://www.econbiz.de/10014040536
How far can we go in weakening the assumptions of the general equilibrium model? Existence of equilibrium, structural stability and finiteness of equilibria of regular economies, genericity of regular economies and an index formula for the equilibria of regular economies have been known not to...
Persistent link: https://www.econbiz.de/10014204262
This note presents an algorithm that extends a binary choice model to choice among multiple alternatives. Both neoclassical microeconomic theory and Luce choice model are consistent with the proposed algorithm. The algorithm is compatible with several empirical findings (asymmetric dominance and...
Persistent link: https://www.econbiz.de/10014204360
This paper focuses on two main issues. First, we find that, on average, households' discount rates decline. This implies dynamically inconsistent preferences. Second, we calculate an indicator of the degree of dynamic inconsistency that may help us to understand how households overcome their...
Persistent link: https://www.econbiz.de/10014214933
A large experimental and empirical literature on asymmetric dominance and attraction effects shows that the probability that an alternative is chosen can increase if additional alternatives become available. Hence context matters and choices and, therefore, market shares can not be accurately...
Persistent link: https://www.econbiz.de/10014225382
The theory of revealed preferences offers an elegant way to test the neoclassical model of utility maximization subject to a linear budget constraint. In many settings, however, the set of available consumption bundles does not take the form of a linear budget set. In this paper, we adjust the...
Persistent link: https://www.econbiz.de/10014158237
We study a dynamic model of self-control where the history of one's decisions has influence on subsequent decision making. In our model effort and guilt are negative emotions produced by previous decisions to either resist or yield to temptation, respectively. When recalled, these emotions...
Persistent link: https://www.econbiz.de/10014165321