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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...
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Given any observed demand behavior by means of a demand function, we quantify by how much it departs from rationality … correcting matrix that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative … semidefiniteness). A useful classification of departures from rationality is suggested as a result. Variants, examples, and …
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Is there a rational component in the decision to commit suicide? Economists have been trying to shed light on this question by studying whether suicide rates are related to contemporaneous conditions. This paper goes one step further: we test whether suicides are linked to forward-looking...
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