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In this paper we study learning procedures when counterfactuals (payo s of not-chosen actions) are not observed. The decision maker reasons in two steps: First, she updates her propensities for each action after every payo experience, where propensity is de ned as how much she prefers each...

We analyze committees of voters who take a decision between two options as a two stage process. In a discussion stage, voters share non verifiable information about a private signal concerning what is the best option. In a voting stage, votes are cast and one of the options is implemented. We...

The costs associated with unhealthy food consumption are not only paid by those suffering from overweight but by all members of society in terms of higher costs for social security systems. With this in mind, we study the effectiveness of a tax, a subsidy and cash incentives in reducing...

Probability matching occurs when an action is chosen with a frequency equivalent to the probability of that action being the best choice. This sub-optimal behavior has been reported repeatedly by psychologist and experimental economist. We provide an evolutionary foundation for this phenomenon...

We study the speed at which technologies are adopted depending on how the market power is shared between the firms that sell technologies and the firms that buy them. Our results suggest that, because of a double marginalization problem, adoption is fastest when either sellers or buyers hold all...

Probability matching occurs when an action is chosen with a frequency equivalent to the probability of that action being the best choice. This sub-optimal behavior has been reported repeatedly by psychologists and experimental economists. We provide an evolutionary foundation for this phenomenon...