2,309 research outputs found
Decision-Making: A Neuroeconomic Perspective
This article introduces and discusses from a philosophical point of view the nascent field of neuroeconomics, which is the study of neural mechanisms involved in decision-making and their economic significance. Following a survey of the ways in which decision-making is usually construed in philosophy, economics and psychology, I review many important findings in neuroeconomics to show that they suggest a revised picture of decision-making and ourselves as choosing agents. Finally, I outline a neuroeconomic account of irrationality
Efficiency, Monotonicity and Rationality in Public Goods Economies
In economies with public goods, we provide a necessary and sufficient condition
for the existence of cost monotonic selections from the set of Pareto optimal
and individualIy ratiollal allocations. Such selections exist if and only if the
preCerences of the agents satisfy what we call the equal ordering property. This
requirement is very restrictive in the context of more than one public good. However, whenever it holds any such mechanism must choose an egalitarian equivalent allocation
Decision-Making: A Neuroeconomic Perspective
This article introduces and discusses from a philosophical point of view the nascent field of neuroeconomics, which is the study of neural mechanisms involved in decision-making and their economic significance. Following a survey of the ways in which decision-making is usually construed in philosophy, economics and psychology, I review many important findings in neuroeconomics to show that they suggest a revised picture of decision-making and ourselves as choosing agents. Finally, I outline a neuroeconomic account of irrationality.neuroeconomics; decision-making; rationality; ultimatum; philosophy; psychology
Keynesian Theory and the AD-AS Framework: A Reconsideration
Contrary to what has been argued by a number of critics, the AD-AS framework is both internally consistent and in conformity with Keynes’s own analysis. Moreover, the eclectic approach to behavioral foundations allows models in this tradition to take into account aggregation problems as well as evidence from behavioral economics. Unencumbered by the straightjacket of optimizing microfoundations, the approach can provide a useful starting point for the analysis of dynamic macroeconomic interactions. In developing this analysis, the AD-AS approach can draw on insights from the Post Keynesian, neo-Marxian and structuralist traditions, as well as from the burgeoning literature on behavioral economics. JEL Categories: E12, O11, B22, B41, B50AS-AD, Keynes, New Keynesian theory, microeconomic foundations
Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust
This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.Trust; Bounded rationality; Value systems; Behavioral decision-making;
Tax Compliance as a Wicked System
This Article proposes a new typology and framework for tax compliance systems. Traditionally-competing approaches such as deterrence theory, behaviorist theory, and game theoretic models taken together suggest that tax compliance is perhaps a new type of system—a “wicked system”—that is only partially comprehensible by understanding the traditional theories alone. If correct, previously competing theories become simply different limiting cases of the same underlying “wicked system.” The Article concludes with a discussion of the framework’s limitations and presents initial solutions and challenges for future work
Negotiating Socially Optimal Allocations of Resources
A multiagent system may be thought of as an artificial society of autonomous
software agents and we can apply concepts borrowed from welfare economics and
social choice theory to assess the social welfare of such an agent society. In
this paper, we study an abstract negotiation framework where agents can agree
on multilateral deals to exchange bundles of indivisible resources. We then
analyse how these deals affect social welfare for different instances of the
basic framework and different interpretations of the concept of social welfare
itself. In particular, we show how certain classes of deals are both sufficient
and necessary to guarantee that a socially optimal allocation of resources will
be reached eventually
Adaptive microfoundations for emergent macroeconomics
In this paper we present the basics of a research program aimed at providing microfoundations to macroeconomic theory on the basis of computational agentbased adaptive descriptions of individual behavior. To exemplify our proposal, a simple prototype model of decentralized multi-market transactions is offered. We show that a very simple agent-based computational laboratory can challenge more structured dynamic stochastic general equilibrium models in mimicking comovements over the business cycle.Microfoundations of macroeconomics, Agent-based economics, Adaptive behavior
Cooperative game theory and its application to natural, environmental, and water resource issues : 2. application to natural and environmental resources
This paper provides a review of various applications of cooperative game theory (CGT) to issues of natural and environmental resources. With an increase in the level of competition over environmental and natural resources, the incidents of disputes have been at the center of allocation agreements. The paper reviews the cases of common pool resources such as fisheries and forests, and cases of environmental pollution such as acid rain, flow, and stock pollution. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce environmental and natural resources is possible under a variety of physical conditions and institutional arrangements. CGT applications to international fishery disputes are especially useful in that they have been making headway in policy-related agreements among states and regions of the world. Forest applications are more local in nature, but of great relevance in solving disputes among communities and various levels of governments.Environmental Economics&Policies,Fisheries&Aquaculture,Common Property Resource Development,Economic Theory&Research,Ecosystems and Natural Habitats
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