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be played due to not full rationality of the opponents or their specific not self-interested motivation. However …
Persistent link: https://www.econbiz.de/10011761459
We study the complexity of rationalizing choice behavior. We do so by analyzing two polar cases, and a number of intermediate ones. In our most structured case, that is where choice behavior is defined in universal choice domains and satisfies the quot;weak axiom of revealed preference,quot;...
Persistent link: https://www.econbiz.de/10012729047
An under-appreciated aspect of F.A. Hayek's mature views about rationality is the inter-relation of the “pure logic of … rationality and replaced it with a completely rule-oriented conception of decisionmaking. In fact, however, the analysis in Hayek ….Furthermore, this framework also shows that his fundamental conception of individual rationality is pragmatic, contextual, modifiable …
Persistent link: https://www.econbiz.de/10012904211
We introduce a “reason-based” way of rationalizing an agent's choice behaviour, which explains choices by specifying which properties of the options or choice context the agent cares about (the “motivationally salient properties”) and how he or she cares about these properties (the...
Persistent link: https://www.econbiz.de/10014151378
emotional and cognitive systems in preference consistency (transitivity). Participants were asked to make a set of binary …
Persistent link: https://www.econbiz.de/10014026835
This paper contrasts the modern use of the assumption that rationality guides individual economic behaviour, as … notions of rationality based on the availability of information, ability to reason (cognitive skills), and even morality …. Learning played a major role in individuals achieving what was referred to as complete rationality. I draw on these ideas, and …
Persistent link: https://www.econbiz.de/10013318577
Lab experiments have revealed that animals sometimes outperform human-beings in terms of instrumental rationality. The … current essay argues that constrained maximization tendency with consistency of preferences are perhaps genetically imbibed … behavior of organism, and such examples display a behavior which is a-rational, i.e. not in the ambit of rationality. Examining …
Persistent link: https://www.econbiz.de/10013224646
Persistent link: https://www.econbiz.de/10012199897
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/10011344408
This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs, and how the potential of losing their firms lead them to take higher risks. This study uses an experimental design with 466 entrepreneurs in Cali, Colombia. Results show that...
Persistent link: https://www.econbiz.de/10011985538