Behavioral Economics Commons^™

A Unified Model Of Adaptive Learning In Normal Form Games, Naoki Funai

Naoki Funai

We investigate an adaptive learning model which nests several existing learning models such as payoff assessment learning, valuation learning, stochastic fictitious play learning, experience-weighted attraction learning and delta learning with indirect payoff information in normal form games. In this paper, we consider adaptive players each of whom (i) assigns payoff assessments to his own actions, (ii) chooses an action which has the highest assessment with some perturbations, and (iii) updates the assessments using observed payoffs, which may include payoffs from unchosen actions, in each period. Utilising the asynchronous stochastic approximation method introduced by Tsitsiklis (1994), we provide conditions under which …

The Problem Of Rationality: Austrian Economics Between Classical Behaviorism And Behavioral Economics (Uncorrected Proof), Mario J. Rizzo

Mario Rizzo

In Part One we establish the rationale and substance of the Robbinsian middle ground – the psychical or mind-dependent character of economics. To accomplish this we explore three post-Wieserian frameworks for Austrian economics: (1) the phenomenological social science of Alfred Schutz; (2) the structure of mind analyzed by Hayek in The Sensory Order; and (3) the later Wittgenstein’s logical analysis of thought. While there are no doubt differences among these approaches we find that they are broadly consistent way of establishing the essential mind-dependency of economics. In Part Two we directly examine the basic issues involved in the characterization of …

A Note On Absolutely Expedient Learning Rules, Carlos Oyarzun

Carlos Oyarzun

I provide a full characterization of the set of absolutely expedient learning rules introduced in Börgers, Morales, and Sarin (2004) [“Expedient and monotone learning rules,” Econometrica, 72, 383–405]. The expected change in the expected payoff can be written as a quadratic form on the vector of relative expected payoffs of the strategies. This permits use of standard linear algebra arguments to provide a characterization in terms of the matrix defining this quadratic form.

Behavioral Economics: Origins, Methodology And “Work Tools”, Daniel A. Monroy

Daniel A Monroy C

This paper has two main objectives: (i) The main objective is to propose a theoretical and methodological delimitation of the Behavioral Economics approach. In this point, the paper argues that such delimitation involves a permanent tension with the hypotheses of rational choice theory of human behavior. (ii) The secondary objective of the paper focuses on the methodology submitted, for this, we present a couple of case studies in order to explain and test such methodology. Furthermore, the case studies will allow us to determinate some work tools of the Behavioral Economics approach.

How Do You Persuade Someone You Do Not Know?, H.C. Yi

Hyun Chang Yi

We examine the potential for communication via cheap talk between an expert and a decision maker whose type (or preferences) is uncertain. The expert privately observes multiple aspects of an issue and persuades the decision maker to choose an action in his favour by informing the decision maker about the issue. The decision maker privately observes her type and chooses an action. The optimal action for the decision maker depends upon her type and the state of the issue. We find that, in one-way cheap talk games where only the expert talks, the expert can always inform the decision maker …

Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz

Justin Schwartz

Why are most capitalist enterprises of any size organized as authoritarian bureaucracies rather than incorporating genuine employee participation that would give the workers real authority? Even firms with employee participation programs leave virtually all decision-making power in the hands of management. The standard answer is that hierarchy is more economically efficient than any sort of genuine participation, so that participatory firms would be less productive and lose out to more traditional competitors. This answer is indefensible. After surveying the history, legal status, and varieties of employee participation, I examine and reject as question-begging the argument that the rarity of genuine …

Learning And Risk Aversion, Carlos Oyarzun, Rajiv Sarin

Carlos Oyarzun

Abstract We study the manner in which learning shapes behavior towards risk when individuals are not assumed to know, or to have beliefs about, probability distributions. In any period, the behavior change induced by learning is assumed to depend on the action chosen and the payoff obtained. We characterize learning processes that, in expected value, increase the probability of choosing the safest (or riskiest) actions and provide sufficient conditions for them to converge, in the long run, to the choices of risk averse (or risk seeking) expected utility maximizers. We provide a learning theoretic motivation for long run risk choices, …

Adaptive Learning In Finitely Repeated Games, Naoki Funai

Naoki Funai

This paper investigates the way in which adaptive players behave in the long-run in finitely repeated games. Each player assigns subjective payoff assessments to his own actions and chooses the action which has the highest assessment at each of his information sets. After receiving payoffs, players update their own assessments of chosen actions using the realized payoffs in an adaptive manner; we consider the updating rules of Watkins and Dayan (1992) and Sarin and Vahid (1999). When players experience random shocks on their assessments, players' behavior strategies converge to a unique agent quantal response equilibrium (McKelvey and Palfrey, 1998) if …

Enfoques Teóricos De Las Reglas Por Defecto En El Derecho De Contratos: Complementariedades, Coincidencias Y Contradicciones, Daniel Monroy

Daniel A Monroy C

El artículo muestra una lectura crítica en lo que respecta a la noción, las funciones y el diseño de las reglas por defecto en el derecho de contratos a partir de tres enfoques teóricos a saber: la perspectiva jurídica tradicional; la visión del Análisis Económico del Derecho (AED) en su versión clásica y; el enfoque del denominado behavioral law and economics (BL&E). El documento destaca con particular atención que en lo correspondiente a la noción y las funciones de las reglas por defecto en el derecho de contratos, existe un alto nivel de coherencia entre la perspectiva jurídica tradicional por …

Mean And Variance Responsive Learning, Carlos Oyarzun, Rajiv Sarin

Carlos Oyarzun

A learning rule is variance-averse if the expected reduced-distribution of payoffs in the next period has a smaller variance than that of the current reduced-distribution, in every set where all the actions provide the same expected payoff. A learning rule is monotonically variance-averse if it is expected to add probability to the set of actions that have the smallest variance in the set, when all the actions have the same expected payoff. A learning rule is monotonically mean-variance-averse if it is expected to add probability to the set of actions that have the highest expected payoff and smallest variance whenever …

The Role Of The Law In The Availability Of Public Transit And Affordable Housing In Atlanta’S West End, Elliott Lipinsky

ELLIOTT LIPINSKY

The Federal Transit Administration (FTA) is a branch of the U.S. Department of Transportation that administers federal funds and provides technical assistance for the support of locally operated public transit systems. MARTA / Atlanta metro area are part of FTA Region IV (the Southeast). FTA would be involved, for instance, in financing the federal grant monies discussed above. But actual regulation of operations (i.e., what MARTA does each day, or what MARTA will plan to do regionally) is more closely regulated by Georgia agencies.

Until recently, the Atlanta metropolitan area had no powerful central agency to coordinate regional transit. The …

Los Modelos De Equilibrio General: La Revisión De Chancelier Y Una Crítica A Debreu Y Mckenzie, Rodrigo Lopez-Pablos

Lopez-Pablos, Rodrigo

A revision on general equilibrium theory from an entropic perspective. JEL CLASSIFICATION: D50, O21, Z19

Preferences For Information And Ambiguity, Jian Li

Jian Li

This paper studies intrinsic preferences for information and the link between intrinsic information attitudes and ambiguity attitudes in settings with subjective uncertainty. We enrich the standard dynamic choice model in two dimensions. First, we introduce a novel choice domain that allows preferences to be indexed by the intermediate information, modeled as partitions of the underlying state space. Second, conditional on a given information partition, we allow preferences over state-contingent outcomes to depart from expected utility axioms. In particular we accommodate ambiguity sensitive preferences. We show that aversion to partial information is equivalent to a property of static preferences called Event …

Multinational Companies And Investments In Sudan: Case Study Of Oil Exploration And Extraction, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The purpose of this paper is to present the role of multinational companies in general then its role in Sudan with particular emphasis on oil exploration and extraction. Chinese companies of multinationalities currently control the newly born oil industry in the country. Needless to say that the dire needs of the government because of its international isolation and sanctions compelled it to be subjected to bellow standards conditions in all economic and environmental aspects. The government accepted the conditions for the past twelve years. However, the secession of Southern Sudan into new country gives better re-negotiations opportunity to the newly …

African Economic Blocs And Trade: Case Study Of Comesa And Sudan, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

Comprehensively, Economic Trade Partnerships and Blocs are important to a member country. However, with the continuing global financial distresses it is useful to evaluate them to maximize possible benefit. The question of joining, continue membership with the Comesa is vital to the Sudanese economy that presently stands in a very decisive time. The Common Market for Eastern and Southern Africa is a free trade area with nineteen member states stretching from Libya to Zimbabwe. COMESA formed in December 1994, replacing a Preferential Trade Area which had existed since 1981. Nine of the member states formed a free trade area in …

Economic Papers Online, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

Those are economic papers online on the pages of Econpaper by Issam AW Mohamed

Review Of The Role Of Agriculture In Sudan Economy, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The calamities of Sudan expand on daily basis. The secession of Southern Sudan has deprived the country of 25% of it total area, 24% of population, over 80% of its oil income. Moreover, it has separated with 75% of it vegetation cover and 30% of potential arable land. In addition, Sudan stands to tolerate at least 25% of its water resources. Economic situation precarious with the Darfur rebellions, the inception of Southern Kordofan's region civil strive and the inflamed complaints in its Blue Nile region. That resulted besides deprivation of oil revenues and other potentials to increased cost of national …

Effects Of The Humanitarian Aid, Internal Displacement On The Social Impacts In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The study presented here reviews activities of NGOs in Sudan by surveying and studying the activities of Save the Children of United Kingdom. Activities of NGOs in Sudan were always a controversial issue that resulted in the expulsion of many in 2009. There were also precedents of such expulsions in previous and following years. The paper discusses humanitarian work in Sudan, positive and negative sides. The case study's activities of the Save the Children efforts in Jebel Aulia Internally Displaced People, specially their efforts in education were investigated. It is concluded that introduce invaluable help in educational field, building classes …

Global Financial Crisis And Effects On The Agricultural Sector Of Sudan, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The severe impacts of the global financial crisis had effects on all world. However, in Sudan scientists and researchers were greatly shocked because of the governmental camouflaging on their real effects on the economy. Minister of National Economy and Finance denied the effects on the Sudanese economy. The governor of the Sudan Central bank did the same with emphasis from both that everything are quite and normal and that Sudan can absorb all shocks on its economic performance. Truly, they ave eaten their words in the following months and confessed the partial effects on the Sudanese economy. Moreover, after they …

Thieves Or Doctors, Armed Civil Conflicts In Darfur And Impacts On Education In Refugees Camps, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The study presented here depends on a field survey of refugees' camps in war strived Darfur region. The data are genuine from people and children. The expelling of NGOs from the region was a moral shock to the whole world, but in Darfur, it was a humanitarian catastrophe affecting the population. In this paper, I surveyed and analyzed data on what I consider the most important factor which are children and establish education as the base of the arguments introduced here. A case study is introduced which is Attash refugees or displaced camp were produced. Data were collected by field …

The Crisis Of A Nation (1), Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

This is the first part of a book I started writing in the year 2008 under the title of Sad Triology: The Crisis of a Nation. I name this chapter the Delirium as it represents the political response to what happens in the country due to the international outrage and pressures to Darfur Crisis. This part is narrating pressures on Sudan's Inqaz regime, specially after the Darfur region crisis and civil wars, the rage of the international society and responses, the impacts of the International Instututions including the ICC and the hunt for justice. All those qualitative variables had responses …

Wto-Doha Multilateral Trade Negotiations And Agriculture, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The Doha Development Round or Doha Development Agenda (DDA) is the current trade-negotiation round of the World Trade Organization (WTO), which launched in November 2001. With the start of this round, non-trade concerns (NTCs) were explicitly renowned and integrated into the negotiation process. Generally, multi-functionality proponents attempt to resist agricultural trade liberalization by giving high support to protect their domestic producers. These are net food importing countries, some small countries with highly protected agricultural sector and large trade deficits in some main outputs and unfavourable agro-climatic conditions. The opponents of the multi-functionality argument all claim to recognize the legitimacy of …

Empowerment, Corruption And Economic Chaos In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In a country on the eve of losing one third of its land, 80% of potential natural resources and 75% of external exports value, economic future seems gloomy. Many opinions were given for economic solutions after the Southern Sudan secession. However, that does not support a theoretical framework that those are the only reasons for the expected economic collapse. Our theory here is that such collapse already happened because of economic mismanagement, corruption and hoarding initiated by the calls for empowerment and carried out by the regime's members. Such acts extended to the banks, economic institutions and randomized privatization. The …

Analysis Of Hiv/Aids Incidents In Sudan With Reference To Khartoum State, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The present paper introduces results of an analysis conducted on data collected from Khartoum state for the yea 2009. It aims to apply statistical models for the HIV/AIDS data in Khartoum state centers of testing blood and counseling. AIDS is recognized as an emerging disease only in the early 1980s, AIDS has rapidly established itself throughout the world, and is likely to endure and persist well into the 21s century. AIDS has evolved from a mysterious illness to a global pandemic which has infected tens of millions less than 20 years. The importance of the study is to emphasize that …

Pillars Of Demise: Empowerment And Corruption, Economic Chaos And Political Disintegration In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In a country on the eve of losing one third of its land, 80% of potential natural resources and 75% of external exports value, economic future seems gloomy. Many opinions were given for economic solutions after the Southern Sudan secession. However, that does not support a theoretical framework that those are the only reasons for the expected economic collapse. Our theory here is that such collapse already happened because of economic mismanagement, corruption and hoarding initiated by the calls for empowerment and carried out by the regime's members. Such acts extended to the banks, economic institutions and randomized privatization. The …

Review Of Somalia, Greed, Colonization And Socioeconomic Impacts, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In a country that lost all feasible authorities for over twenty years economic future seems gloomy. No feasible economic solutions are seen. The paper review auspices of the Somalian tragedy and retort history of its last dictatorship, Siad Barri, the following civil conflict and the process of the present total war, everyone against everyone. Socioeconomic impacts are discussed along with the education situation and state human capital there.

Economics Of Water Use For Commodity Production In Scarcity Arid Regions: Kutum, Darfur, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The paper investigates water use in a rural village in semi-arid of Darfur region. Water use is viewed from the perspective of four production sectors: agriculture, rural industry, trade and services as well as domestic: drinking, cooking and sanitary uses. Water for these uses may be from three sources: rain water, surface water, and groundwater. This study focuses on groundwater. Results of a detailed survey indicate that groundwater use is dominated by agricultural activities including irrigated vegetables and grains, tree crops, and animal rearing. A ratio of water use to income generated is used as a measure of water intensity …

Impacts Of The Political Regime On The High Education System Of Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In totalitarian systems, especially that of dogmatic nature, education is often targeted to be devoted for the preparations of young generations and dedicating them to the regimes' structure and principles. However, such method negatively influences the educational system and renders the efficient inputs to students. The results can be manifested in deterioration of knowledge, human capital development and the future performance per se.

An Overview Of Economic Patterns Of Partnerships Between Developing And Rich Countries With Special Reference To Usa And Sudan, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The current paper presents unique approach to economic analysis where the theoretical framework applied here postulates that relationships between rogue countries, such as Korea, Syria, Iran and Sudan necessarily are potential parts for an economically mutual and viably profitable partnership. The paper reviews such relationships, especially between African and European countries like Lume and kotono. I first present a review of existing trade and economic partnerships. Next, I discuss economic relationships between developed and developing countries. It is revealed that in some instances, the predatory nature of those agreements and partnerships are manifested which atrophy the basic potentials of the …

Poverty Alleviation, Banks' Structures And Islamic Financing In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The continuous regressions in the per capita income of the Sudanese people have triggered many suggestions to ameliorate their productive capabilities. One of them was the facilitations in financing programs through official channels. However, there are many structural impediments that inhibit those programs. One of the financial programs was the Small or miniature financing in addition to the establishment to specialized Banks as the Family Bank. The current paper discusses issues of financing in Sudan as part of programs initiated to improve income per capita. Islamic and regular financing systems are analyzed in order to explain existing impediments. Then Family …