The canonical model in economics considers people to be rational and self-regarding. However, much evidence challenges this view, raising the question of when “Economic Man” dominates the outcome of social interactions, and when bounded rationality or other-regarding preferences dominate....

Marketing is an applied science that tries to explain and influence how firms and consumers actually behave in markets. Marketing models are usually applications of economic theories. These theories are general and produce precise predictions, but they rely on strong assumptions of rationality...

Most learning models assume players are adaptive (i.e., they respond only to their own previous experience and ignore others' payoff information) and behavior is not sensitive to the way in which players are matched. Empirical evidence suggests otherwise. In this paper, we extend our adaptive...

Genes can affect behaviour towards risks through at least two distinct neurocomputational mechanisms: they may affect the value assigned to different risky options, or they may affect the way in which the brain adjudicates between options based on their value. We combined methods from...

Management literature focuses on two modes of coordination: formal and informal structures. Informal structure grants significant discretion to individual actions. Yet two impediments are related to such flexibility, those created by opportunism and those created by convergent expectations....

Many alternative theories have been proposed to explain violations of expected utility (EU) theory observed in experiments. Several recent studies test some of these alternative theories against each other. Formal tests used to judge the theories usually count the number of responses consistent...

Over time, members of organizations develop entitlements-preferences about how they wish to be treated and beliefs about how they should be treated. The formation of entitlements is an important subject for strategy researchers because employees resist changes that violate their perceived...

The standard approach to modeling intertemporal consumption is to assume that consumers are solving a dynamic optimization problem. Under realistic descriptions of utility and uncertainty—stochastic income and habit formation-- these intertemporal problems are very difficult to solve....

Game theory is usually difficult to test precisely in the field because predictions typically depend sensitively on features that are not controlled or observed. We conduct one such test using field data from the Swedish lowest unique positive integer (LUPI) game. In the LUPI game, players pick...