Incorporating Behavioral Anomalies in Strategic Models

Prospect Theory or Skill Signaling?

Failure is embarrassing. In gambles involving both skill and chance, we show that a strategic desire to avoid appearing unskilled generates behavioral anomalies consistent with prospect theory’s concepts of loss aversion, framing effects, and probability weighting. Based on models from the career concerns literature that formalize early social psychology models of risk taking, the results show ...

Measuring and incorporating attitudes toward risk into mathematical programming models : the case of farmers in kavar district iran

بررسی اثر TOM و اثر نیمه اول و دوم هر ماه بر روی بازدهی و حجم معاملات در بورس اوراق بهادار تهران

Several anomalies have been documented indicating that capital markets do not behave as rational as “modern portfolio theory” states in other words a set of emotional, psychological and irrational behaviors are common in capital markets. Several tests have been conducted to address this issue. A large number of these tests have justified the effect of behavioral factors on securities prices. On...

Price Theory in Economics∗

This paper reviews topics in price theory such as rational choice, Walrasian equilibria, complete and incomplete markets, externalities and nonmarket goods, strategic pricing with complete and incomplete information, and some behavioral anomalies. Contains index.

Who is Strategic?∗

Behavioral game theory models are important in organizing experimental data of strategic decision making. However, are subjects classified as behavioral types more predictable in their choices than unclassified subjects? Alternatively, how many subjects await new behavioral models to describe them? In our experiments, subjects play simple guessing games against random opponents and are subseque...