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disciplines, viz., groups, norms and sanctions. Secondly, it must be couched in a language familiar to the economics profession … to support the procurement of the group’s collective good and submits to a system of norms and to the corresponding self …In Part I, we argue that Economics must outgrow the narrow confines of Neo-Classical Economics to embrace ‘sociality …
Persistent link: https://www.econbiz.de/10011481673
A decision maker (DM) makes choices from different sets of alternatives. The DM is initially fully ignorant of the payoff associated to each alternative, and learns these payoffs only after a large number of choices have been made. We show that, in the presence of an outside option once payoffs...
Persistent link: https://www.econbiz.de/10011348262
. Firstly, the ratio commuting costs per mile over demand land for rent is found constant between income groups, which is … away. This leads to an overlapping of the different income groups unlike the utility functions models that often predict …
Persistent link: https://www.econbiz.de/10011400559
This paper analyzes a boundedly rational decision maker who is uncertain about his preference and faces the following trade-off: adding a good to the choice set has a positive option value but increases the complexity of the choice problem. The increased complexity is modeled as a reduction of...
Persistent link: https://www.econbiz.de/10010322636
In this paper we analyze a consumer choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. We make use of the fact that...
Persistent link: https://www.econbiz.de/10010329457
Why do we love stories? That this is not an idle question is shown by the fact that we spend an enormous amount of time in our lives following stories: telling and listening to them; reading them; watching them on television or in films or on stage. Despite their recurrent similarity and even...
Persistent link: https://www.econbiz.de/10010368322
We explore effects of simultaneous price changes for the demand of a group of goods, which we refer to as a compound commodity. Specifically, we consider unit and proportional cost components (e. g., taxes, transportation costs, etc.) imposed on the compound commodity. We find that there is a...
Persistent link: https://www.econbiz.de/10011555502
Motivated by the literature on ``choice overload'', we study a boundedly rational agent whose choice behavior admits a \textit{monotone threshold representation}: There is an underlying rational benchmark, corresponding to maximization of a utility function $v$, from which the agent's choices...
Persistent link: https://www.econbiz.de/10011599584
Empirical evidence suggests that choices are affected by the amount of time available to the decision maker. Time pressure or a cooling-off period (mandatory delay of choice) changes how choices are determined. Yet, few models are able to account for the role of available time on decisions. This...
Persistent link: https://www.econbiz.de/10011651973
Behavioral economics characterizes decision-makers using psychologically-informed models. Cognitive science produces psychologically-informed models. Why don't these disciplines talk more? Here, the author presents several arguments for why cognitive science should inform behavioral economics -...
Persistent link: https://www.econbiz.de/10011984439