A descriptive model of boundedly rational adoption behavior of consumers is developed. This model is based on prospect theory proposed by Kahneman and Tversky and on the discrepancy model, an adaptive learning model, often used in social psychology. It is shown that a normative model of rational...

We study environments where a production process is jointly shared by a finite group of agents. The social decision involves the determination of input contribution and output distribution. We define a competitive solution when there is decreasing returns-to-scale and show that it leads to a...