Although the priority heuristic (PH) is conceived as a cognitive-process model, some of its critical process assumptions remain to be tested. The PH makes very strong ordinal and quantitative assumptions about the strictly sequential, non-compensatory use of three cues in choices between...

There is a debate in academia and the business world on whether tax payments should be considered part of firms’ social responsibility. Existing literature provides conflicting evidence on the relationship between corporate tax payments and corporate social responsibility (CSR). Borrowing a...

This paper offers a new explanation of value-reducing mergers and stock market driven takeovers by introducing recent research on aspiration levels and individual decision making under risk. If market valuation constitutes an aspiration level for managers, we show that managers may be tempted to...

Over the past few years, there has been a steadily increasing interest on the part of economists in happiness research. This paper argues that reported subjective well-being is a satisfactory empirical approximation to individual utility and endeavors to provide an impression of this new, and...

We present a dynamic model of the interaction between interest groups and policymakers, featuring endogenous interest group formation. We show that complicated dynamic patterns in economic policies may arise once interest group formation is taken into account. <BR><BR>

We report on a two-person bargaining experiment, where both players are represented by groups of three persons each. Both groups negotiate on the division of a given amount. If they do not come to an agreement, they receive a guaranteed payoff which is higher for one group than for the other....