Estimation models describe well collective decisions among three options

Estimation models describe well collective decisions among three options.

Context-dependent decisions among options varying in a single dimension.

Contrary to theories of rational choice, adding alternatives to a choice set can change the choices made by both humans and animals. This is usually done by adding an inferior decoy to a choice set of two favoured options that are characterized on two distinct dimensions. We presented wild, free-living rufous hummingbirds (Selasphorus rufus) with choices between two or three options that varied...

Deliberating Collective Decisions

We present a dynamic model of sequential information acquisition by a heterogeneous committee. At each date agents decide whether to vote to adopt one of two alternatives or continue to collect more information. The process stops when a qualified majority vote for an alternative. Three main insights emerge from our analysis and match an array of stylized facts on committee decision making. Firs...

Costly Verification in Collective Decisions∗

We study how a principal should optimally choose between implementing a new policy and maintaining the status quo when the information relevant for the decision is privately held by agents. Agents are strategic in revealing their information, but the principal can verify an agent’s information at a given cost. We exclude monetary transfers. When is it worthwhile for the principal to incur the c...

Real options and demographic decisions

The theory of real options is used to incorporate the influence of uncertainty on demographic decision-making. The decision to have children is formulated as an investment using portfolio theory. The timing of the decision to have a child is modelled as a real options decision, with uncertainty affecting a woman’s ability to exercise the doption to waitT in order to delay or space births. An in...