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Full-Text Articles in Behavioral Economics
Behavioral Economics: Origins, Methodology And “Work Tools”, Daniel A. Monroy
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.
Modelling Biased Judgement With Weighted Updating, Jesse A. Zinn
Modelling Biased Judgement With Weighted Updating, Jesse A. Zinn
Jesse A Zinn
The weighted updating model is a generalization of Bayesian updating that allows for biased beliefs by weighting the functions that constitute Bayes’ rule with real exponents. This paper shows that weighting a distribution affects the information entropy of the resulting distribution, suggesting that weighted updating can model biases in which individuals mistake the information content of data. The paper augments the base model in two ways, allowing it to account for additional biases. The first expansion involves discrimination between data. The second allows the weights to vary over time. The paper also presents a set of sufficient conditions for the …