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Cognitive constraints, contraction consistency, and the satisficing criterion

Tyson, Christopher J. - 2007

A theory of decision making is proposed that offers an axiomatic basis for the notion of satisficing postulated by … Herbert Simon. The theory relaxes the standard assumption that the decision maker always fully perceives his preferences among … be equivalent to abandoning the contraction consistency axiom of classical choice theory. …

Persistent link: https://www.econbiz.de/10010284092

Reason-based choice correspondences

Lombardi, Michele - 2007

A reason-based choice correspondence rationalizes choice behaviour in terms of a two-stage choice procedure. Given a feasible set S, the individual eliminates from it all of the dominated alternatives according to her fixed (not necessarily complete) strict preference relation, in the first...

Persistent link: https://www.econbiz.de/10010284113

On the role of non-equilibrium focal points as coordination devices

Bosch-Domènech, Antoni; Vriend, Nicolaas J. - 2008

Considering a pure coordination game with a large number of equivalent equilibria, we argue, first, that a focal point that is itself not a Nash equilibrium and is Pareto dominated by all Nash equilibria, may attract the players' choices. Second, we argue that such a non-equilibrium focal point...

Persistent link: https://www.econbiz.de/10010284116

Determining the stationarity properties of individual series in panel datasets

Kapetanios, George - 2003

An attractive feature of panel unit root tests is the ability to exploit coefficient homogeneity under the null hypothesis of a unit root for all series in order to obtain a more powerful test of the unit root hypothesis. However, under the alternative hypothesis of heterogeneous panel unit root...

Persistent link: https://www.econbiz.de/10010284119

Determining the poolability of individual series in panel datasets

Kapetanios, George - 2003

Panel datasets have been increasingly used in economics to analyse complex economic phenomena. One of the attractions of panel datasets is the ability to use an extended dataset to obtain information about parameters of interest which are assumed to have common values across panel units....

Persistent link: https://www.econbiz.de/10010284125

Consumer choice and revealed bounded rationality

Manzini, Paola; Mariotti, Marco - 2006

We study two boundedly rational procedures in consumer behavior. We show that these procedures can be detected by conditions on observable demand data of the same type as standard revealed preference axioms. This provides the basis for a non-parametric analysis of boundedly rational consumer...

Persistent link: https://www.econbiz.de/10010284127

Tests of utility independence when health varies over time

Spencer, Anne; Robinson, Angela - 2007

In the conventional QALY model, people's preferences are assumed to satisfy utility independence. When health varies over time, utility independence implies that the value attached to a health state is independent of the health state that arise before or after it. In this paper we set out to...

Persistent link: https://www.econbiz.de/10010284128

On the behavior of proposers in ultimatum games

Brenner, Thomas; Vriend, Nicolaas J. - 2003

We demonstrate that one should not expect convergence of the proposals to the subgame perfect Nash equilibrium offer in standard ultimatum games. First, imposing strict experimental control of the behavior of the receiving players and focusing on the behavior of the proposers, we show...

Persistent link: https://www.econbiz.de/10010284129

Do asymmetric and nonlinear adjustments explain the forward premium anomaly?

Baillie, Richard T.; Kilic, Rehim - 2005

methodology is motivated by some recent economic theory literature on transactions costs, the limits to speculation and hysteresis …

Persistent link: https://www.econbiz.de/10010284140

Management of a capital stock by Strotz's naive planner

Tyson, Christopher J. - 2007

characterizations leave the discounting function essentially unrestricted, the theory can accommodate, in particular, decision makers …

Persistent link: https://www.econbiz.de/10010284143