A notion of cognitive uncertainty is introduced as an agent's uncertainty about the validity of the results of his own information processing. In order to analyze this notion, a formal model of the agent's information processing is presented. It is shown how cognitive uncertainty may prevent a...

In an interactive model of offshore bidding, two firms located in two different countries bid on a project in a third country under exchange rate uncertainty. Every firm benefits and provides a higher bid when both firms have hedging opportunities. Even if only one bidder has the hedging...

As is widely conjectured, duopolists form a cost-sharing cooperative R&D alliance to develop a product - regardless of the probability of research success is either very high or very low. This study establishes that most low probabilities of research success cannot induce a financially...

In a laboratory experiment, the voluntary provision of public goods is investigated when there is probabilistic uncertainty about the monetary return from production of the public good. After group members make their provision decisions, the return is drawn from an exogenously determined...

In a laboratory experiment, the voluntary provision of public goods is investigated when there is probabilistic uncertainty about the monetary return from production of the public good. After group members make their provision decisions, the return is drawn from an exogenously determined...

In a laboratory experiment, the voluntary provision of public goods is investigated when there is probabilistic uncertainty about the monetary return from production of the public good. After group members make their provision decisions, the return is drawn from an exogenously determined...

A new approach is presented. It is based on a generalization of a breach of a term of contract and on the economic uncertainty principle. Problems, which can be solved, research fields, which can be augmented or created, and fields of applications in practical economy are reviewed. The role of...

The paper discusses the utilization of social complexity studies to enhance our understanding on many social phenomena. The discussions brings the concept of uncertainty in almost everything of social realms and makes some points related to the empirical findings of the power-law distributions...

This paper examines the complexity and "fuzzy logic" actually at play in governance in case studies such as HIH (Australia) and Enron (USA). The rules applying to each sector cannot fully explain events. Non?prescribed factors influencing behaviours affecting the interconnections,...

Two deviations of alternating-offer bargaining behavior from economic theory are observed together, yet have been studied separately. Players who could secure themselves a large surplus share if bargainers were purely self-interested incompletely exploit their advantage. Delay in agreement...