This paper is intended tomodel a decisionmaker as a rational probabilistic decider (RPD) and to investigate its behavior in stationary and symmetric Markov switch environments. RPDs take their decisions based on penalty functions defined by the environment. The quality of decision making depends on a parameter referred to as level of rationality. The dynamic behavior of RPDs is described by an ...

This paper develops a dynamic model of rational behavior under uncertainty, in which the agent maximizes the stream of the future τ-quantile utilities, for τ ∈ (0, 1). That is, the agent has a quantile utility preference instead of the standard expected utility. Quantile preferences have useful advantages, such as robustness and ability to capture heterogeneity. We provide an axiomatization of ...

Behavioral economics is widely recognized as a rising field in economics, one whose discoveries and implications are not yet completed or understood. At the same time, economic theory plays an enormous role in our governmental and legal system. In particular, the Coase Theorem and its implications have affected nearly every area in the field of law and economics. This paper proposes a experimen...

* Correspondence: [email protected] Department of Basic Courses, Hebei Finance University, Baoding 071000, China Abstract This article is concerned with the following rational difference equation yn+1 = (yn + yn-1)/(p + ynyn-1) with the initial conditions; y-1, y0 are arbitrary positive real numbers, and p is positive constant. Locally asymptotical stability and global attractivity of the ...

This study examines the relationships between the herding of various investor groups and trading noise in the Taiwan stock market to determine whether any of the investor groups tend to herd rationally. The study uses a unique and comprehensive data set on intraday transactions and limit order books of the Taiwan Stock Exchange (TWSE). We calculate the high-frequency herding measures and tradin...

Countering the claim that brain determination (or more broadly: causation) undermines legal responsibility, Stephen Morse argued repetitively that penal law is not founded on metaphysical free will but rather the idea that people are, generally, rational agents; causation, determination, or alleged lack of free will are no excusing conditions, unlike lack of rational capacity, compulsion, or co...

Medium-term modeling of electricity market has essential role in generation expansion planning. On the other hand, uncertainties strongly affect modeling and consequently, strategic analysis of generation firms in the medium term. Therefore, models considering these uncertainties are highly required. Among uncertain variables considered in the medium term generation planning, demand and hyd...

s Invited speakers INTUITION, ANALYTIC THINKING, AND THE FEELING OF RIGHTNESS: A METACOGNITIVE REASONING THEORY Valerie Thompson, University of Saskatchewan Amongst educators and psychologists, questions of metacognition have garnered much attention, especially as they pertain to the domains of learning and memory. In this context, it is therefore somewhat surprising that relatively little is k...

The first essay “A Simple Threshold Model of Theft” proposes and estimates a simple threshold model of theft, where all individuals have access to the same distribution of theft opportunities, and what differentiates them is their expectation of the cost of theft. The data support the basic assumptions of the model. The best predictors of theft are variables that are good proxies for patience a...

The ability to learn from user interactions can give systems access to unprecedented amounts of knowledge. This is evident in search engines, recommender systems, and electronic commerce, and it can be the key to solving other knowledge intensive tasks. However, extracting the knowledge conveyed by user interactions is less straightforward than standard machine learning, since it requires learn...