assumptions of expected utility theory and the basic rationality requirement of consistency with first-order stochastic dominance … consistent with the rationality criterion. In contrast, Chapters 3, 4 and 5 take a behavioral approach to decisions under … by a systematic bias instead of a private information advantage. Contradicting the rationality postulate and ruled out …

Bayesian rationality is the paradigm of rational behavior in neoclassical economics. A rational agent in an economic …. The paper raises the question of how, when and why this characterization of rationality came to be endorsed by mainstream … subjective expected utility theory in his 1954 classic The Foundations of Statistics. It is the latter's acknowledged fiasco to …

How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality … rationality, with particular emphasis on growing formalization of those departures, which add necessary precision. We also explore … the relationship between bounded rationality and libertarian paternalism, or nudges, and show that some recent objections …