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view. Though models of substantive rationality cannot serve as guidance for decision-making under uncertainty, we can …
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We study optimal selling strategies of a seller who is poorly informed about the buyer’s value for the object. When the maxmin seller only knows that the mean of the distribution of the buyer's valuations belongs to some interval then nature can keep him to payoff zero no matter how much...
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consistent with the rationality criterion. In contrast, Chapters 3, 4 and 5 take a behavioral approach to decisions under … assumptions of expected utility theory and the basic rationality requirement of consistency with first-order stochastic dominance … by a systematic bias instead of a private information advantage. Contradicting the rationality postulate and ruled out …
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