This paper presents an experiment that is designed to be more effective than previous studies at reproducing in the laboratory the affective experiences of risk-taking, such as hope, fear, thrill, pain of loss, regret, disappointment or elation. The use of dynamic choice problems involving...

This paper defines the concept of a justifiable strategy, that of a justification theory (which shows strategies to be justifiable) and that of a complete justification theory (which for every strategy shows whether it is justifiable or not). An impossibility result is proved, showing that there...

The common ratio effect is a well-attested violation of expected utility theory. This paper uses four principles of dynamic choice to characterize alternative theoretical strategies for explaining the effect. It reports an experiment which tests these principles and, by implication, several...

A two period, general equilibrium, model is analyzed in which agents foresee how the second period outcome is determined by the investment decisions which they make in the first period. These decisions concern the acquisition of human and physical capital. The paper considers the impact of a...

The paper investigates the claim of Gylfason and Lindbeck (1994) that a stagflationary bias arises from the interaction between monetary policymaking and wage-setting if, among other things, the government and unions share a concern for inflation. It uses a game theoretic model of this...

This paper considers the normative status of the independence and ordering principles of expected utility theory. Preferences are defined in terms of choice and the two principles derived from restrictions on choice in sequential decision problems. The results extend and clarify important...

The effects of corporatism on inflation and output are analyzed in a model of a game between a government and a union. This model allows consideration of aspects of corporatism other than centralization of wage bargaining and permits monetary policy to be endogenized. Corporatist attitudes on...