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We study how other-regarding behavior extends to environments with uncertain income and conditional commitments. Should fundraisers ask a banker to donate "if he earns a bonus" or wait and ask after the bonus is known? Standard EU theory predicts these are equivalent; loss-aversion and signaling...
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We study how other-regarding behavior extends to environments with uncertain income and conditional commitments. Should fundraisers ask a banker to donate "if he earns a bonus" or wait and ask after the bonus is known? Standard EU theory predicts these are equivalent; loss-aversion and signaling...
Persistent link: https://www.econbiz.de/10011346238
Persistent link: https://www.econbiz.de/10012199565
Standard economic models explain decision-making under risk as a methodical utility maximization process. Developments in cognitive psychology and neuroeconomics show the volatility of such conceptualization highlighting human bounded rationality and discussing the role of decision makers'...
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