Inattention is a central, unifying theme for much of behavioral economics. It permeates such disparate fields as microeconomics, macroeconomics, finance, public economics, and industrial organization. It enables us to think in a rather consistent way about behavioral biases, speculate about their origins, and trace out their implications for market outcomes. This survey first discusses the most...

PRELIMINARY AND INCOMPLETE, PLEASE DO NOT CITE WITHOUT PERMISSION. We develop and estimate an empirical model of the U.S. banking sector using a new data set covering the largest U.S. banks over the period 2002-2013. Our model incorporates insured depositors and run-prone uninsured depositors who have rich preferences over differentiated banks. Banks compete for deposits in the spirit of Matute...

This article defines and analyzes a ‘‘sparse max’’ operator, which is a less than fully attentive and rational version of the traditional max operator. The agent builds (as economists do) a simplified model of the world which is sparse, considering only the variables of first-order importance. His stylized model and his resulting choices both derive from constrained optimization. Still, the spa...

The Austrian school is best known for its microeconomics and, in particular, for its role in the marginalist revolution. In the early 1870s, Carl Menger, along with French economist Léon Walras and English economist William Stanley Jevons, reoriented value theory by calling attention to the marginal unit of a good as key to our understanding the determination of the good’s market price. With ma...

It is very difficult to choose the best job among many vacation jobs based on our subjective judgments. This article tried solve this problem by combining mathematics and microeconomics. On premise of personal conditions requirements, an analysis model was developed set two objective functions maximum net income additional satisfaction, While constraint condition given as well .The for finding ...

The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent.

In this paper, an existing methodology (Bagajewicz, 2007) for the development of consumer products is applied to winemaking. We use a price demand model that incorporates product quality and allows the determination of the most profitable product, which is not always the best product from the consumer’s perspectivea well known fact. The parameters of the model are however, uncertain, especially...

The microeconomics principles course focuses on competitive markets far more than any other market structure. This paper considers the possible reasons. We suggest that this focus might be because: (1) competition is descriptive of many important real world markets (2) competition is viewed as a useful approximation to a wide array of real world markets that are not strictly competitive; (3) co...

This paper investigates the microeconomics of diversification, based on a two-period model of an owner-managed firm facing uncertainty. The analysis utilizes a general statecontingent representation of uncertainty and learning. Economies of diversification are defined based on a certainty equivalent, which has three components: expected profit, the risk premium (measuring the cost of risk avers...

We present the family of Excess Payoff Dynamics for normal-form games, where growth a strategy depends only on its current proportion and excess payoff, i.e., payoff advantage over average population payoff. Requiring dependence own natural sign-preserving condition, class essentially reduces to aggregate monotonic dynamics, functional generalization Replicator Dynamics. However, also include d...