A descriptive model of boundedly rational adoption behavior of consumers is developed. This model is based on prospect theory proposed by Kahneman and Tversky and on the discrepancy model, an adaptive learning model, often used in social psychology. It is shown that a normative model of rational...

Since the classic work of Feyerabend and Kuhn, the role of social factors in the scientific enterprise has been a major concern in the philosophy and history of science. In particular, the presence of social factors such as the desire for prestige or pressures to conform to accepted ideas, have...

Today's top financial-risk professionals have come to rely on ever-more sophisticated mathematics in their attempts to come to grips with financial risk. But this excessive reliance on quantitative precision is misleading--and it puts us all at risk. This is the case that Riccardo Rebonato makes...