One lottery over a vector outcome space is said to be riskier than another if every risk averse decision-maker prefers the latter to the former. We consider two other criteria for making such comparisons, one of which is a generalization of second-order stochastic dominance. Our main result is...

The focus of this study is on black markets which provide an important segment of the parallel economy. These markets operate in disequilibrium,search and information costs become very important.Trafficking in drugs taken as case, to explore both theoretically and empirically. The problem,...

Prosociality is fundamental to human social life, and, accordingly, much research has attempted to explain human prosocial behavior. Capraro and Rand (Judgment and Decision Making, 13, 99-111, 2018) recently provided experimental evidence that prosociality in anonymous, one-shot interactions...

Methods of statistical physics have proven valuable for studying the evolution of cooperation in social dilemma games. However, recent empirical research shows that cooperative behavior in social dilemmas is only one kind of a more general class of behavior, namely moral behavior, which includes...

In the Ultimatum Game (UG) one player, named “proposer”, has to decide how to allocate a certain amount of money between herself and a “responder”. If the offer is greater than or equal to the responder’s minimum acceptable offer (MAO), then the money is split as proposed, otherwise,...

Lies can have profoundly negative consequences for individuals, groups, and even for societies. Understanding how lying evolves and when it proliferates is therefore of significant importance for our personal and societal well-being. To that effect, we here study the sender-receiver game in...

The basic axioms or formal conditions of decision theory, especially the ordering condition put on preferences and the axioms underlying the expected utility (EU) formula, are subject to a number of counter-examples, some of which can be endowed with normative value and thus fall within the...

Stochastic independence (SI) has a complex status in probability theory. It is not part of the definition of a probability measure, but it is nonetheless an essential property for the mathematical development of this theory, hence a property that any theory on the foundations of probability...

In this article, the author presents a model of distributional properties of returns on financial instruments tied to ETFs via high-frequency statistical arbitrage. As the author's model shows, the securities subject to an ETF arbitrage exhibit a well-defined behavior, largely dependent on the...

We consider the indifference valuation of an uncertain monetary payoff from the perspective of an uncertainty averse decision maker. We study how the indifference valuation depends on the decision maker’s attitudes toward uncertainty. We obtain a characterization of comparative uncertainty...