Behaviour in Context

2018 ◽  
Author(s):  
Gordon L. Clark
Keyword(s):  
Collective Action ◽  
Adverse Effects ◽  
Bounded Rationality ◽  
Diffusion Of Innovation ◽  
Economic Geography ◽  
Loss Aversion ◽  
Home Bias ◽  
Rational Agent ◽  
Microeconomic Theory ◽  
Common Problems

The behavioural revolution has profoundly affected how we conceptualize behaviour. The rational agent of standard microeconomic theory has been found wanting and, in its place, new formulations have been presented which take seriously human traits like myopia and loss aversion. Here it is argued that the behavioural revolution offers a way of understanding common problems in economic geography, such as co-location, clusters of innovation, the diffusion of innovation, and home bias. It is noted that earlier versions of behaviouralism stressed bounded rationality but underestimated the far-reaching consequences of the behavioural revolution. To explain the significance of these developments for understanding the intersection between cognition and context, we look closely at behaviour in time and space. The implications of behaviouralism for institutions are briefly considered, emphasizing the role that collective action in or through institutions can play in ameliorating the adverse effects of behavioural biases and anomalies.

Intertemporal Bounded Rationality as Consideration Sets with Contraction Consistency

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Dean Spears
Keyword(s):  
Bounded Rationality ◽  
Decision Maker ◽  
Intertemporal Choice ◽  
Rational Agent ◽  
Consideration Sets ◽  
Model Choice ◽  
Rational Decision ◽  
Choice Sets

How would a boundedly rational agent react to a larger menu? I model choice from an unobservable, subjective consideration subset. Consideration sets satisfy Sen’s property alpha: larger objective choice sets can generate smaller consideration sets. The contribution of this paper is a representation of choice among menus: choice sets are only as valuable as the best item in their subjective subsets, so larger sets can be worse. Unlike people facing temptation, a boundedly rational decision maker can strictly prefer both of two choice sets to their union. This model of intertemporal choice reflects how an agent who satisfies Weak WARP would choose, if sophisticated about her bounded rationality.

Theorizing Fiscal Policy Coordination

2019 ◽  
pp. 26-44 ◽  
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Fiscal Policy ◽  
Collective Action ◽  
Free Riding ◽  
Policy Coordination ◽  
Common Interest ◽  
Eu Membership ◽  
Common Problems ◽  
Research Questions ◽  
Cooperative Solutions ◽  
Fiscal Policy Coordination

Fiscal policy coordination is marred by a classic collective action problem; it pays to be egoistical. Member states have an incentive to under- or over-stimulate their economies (what this chapter terms growth and stability free riding), despite a common interest in coordinated policies. Building on Mancur Olson’s premise on collective action failure, the chapter develops three research questions that guide the empirical investigation. These relate to the group latency of EU membership, the evidence for collective action, and finally the provision of incentives to keep free riding at bay. The theme running through this chapter is that the interdependence of EU economies requires cooperative solutions to common problems.

Die Psychologie begrenzt rationaler Wirtschaftspolitik: Das Beispiel des Reformstaus

2001 ◽  
Vol 50 (1) ◽  
Author(s):  
Friedrich Heinemann
Keyword(s):  
Economic Policy ◽  
Bounded Rationality ◽  
Loss Aversion ◽  
Explanatory Power ◽  
Status Quo ◽  
Psychological Perspective ◽  
Full Information ◽  
Policy Options ◽  
Full Rationality ◽  
Rational Reasoning

AbstractMainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for limited rationality is given, since voters lack incentives for rational reasoning concerning their voting decision. The explanatory power of limited rationality is demonstrated for the example of reform resistance. Status quo preferences, endowment effects and loss aversion are typical deviations from full rationality and explain resistance against beneficial reforms even if there is full information and no uncertainty. From this psychological perspective, a major precondition for the implementation of reforms is the loss of status quo as an available option. Test runs of policy options may also be helpful for overcoming psychological reform resistance.

A Model of Complex Contracts

2020 ◽  
Vol 110 (5) ◽  
pp. 1243-1273
Author(s):  
Alexander M. Jakobsen
Keyword(s):  
Mechanism Design ◽  
Bounded Rationality ◽  
Design Problem ◽  
Rational Agent ◽  
Limited Information ◽  
Optimal Contracts ◽  
Belief States

I study a mechanism design problem involving a principal and a single, boundedly rational agent. The agent transitions among belief states by combining current beliefs with up to K pieces of information at a time. By expressing a mechanism as a complex contract—a collection of clauses, each providing limited information about the mechanism—the principal manipulates the agent into believing truthful reporting is optimal. I show that such bounded rationality expands the set of implementable functions and that optimal contracts are robust not only to variation in K, but to several plausible variations on the agent’s cognitive procedure. (JEL D82, D86)

scholarly journals Was adam smith an economic geographer?

GeoJournal ◽  
2021 ◽  
Author(s):  
Stefanos Ioannou ◽  
Dariusz Wójcik
Keyword(s):  
Economic Geography ◽  
Adam Smith ◽  
Home Bias ◽  
Division Of Labour ◽  
Physical Geography ◽  
Invisible Hand ◽  
Financial Centre ◽  
Financial Geography ◽  
Wealth Of Nations

AbstractEconomic geographers typically associate Adam Smith with the pin factory, the division of labour, and the ‘invisible hand’ of the market. We show that a closer reading of The Wealth of Nations reveals a much richer and broader range of ideas, which we illustrate by focusing on six themes: methodology, the role of physical geography and land in development, urban scale, institutions, commercial centres, and financial geography. On commercial centres, for example, Smith offers a vivid elaboration of what causes a ‘home bias’ in international trade. Similarly, in a largely neglected part of the book, Smith offers a thorough set of reflections as to what turned Amsterdam into the leading financial centre of Europe during the seventeenth century and eighteenth centuries. Overall, we argue that in all these themes and across them, Smith offers insights valuable to contemporary economic geography, making the Wealth of Nations worthy a place in an anthology of the discipline.

scholarly journals PEDIATRIC PROBLEMS OF HIV INFECTION AND SOLUTIONS IN SAINT PETERSBURG

2019 ◽  
Vol 11 (1) ◽  
pp. 31-37 ◽  
Author(s):  
E. B. Yastrebova ◽  
A. V. Samarina ◽  
E. K. Fertyh ◽  
L. V. Gutova
Keyword(s):  
Adverse Effects ◽  
Hiv Infection ◽  
Prevention And Control ◽  
Statistical Processing ◽  
Perinatal Period ◽  
Law Enforcement Agencies ◽  
Department Of State ◽  
Problems And Solutions ◽  
Common Problems ◽  
And Control

Survey objective: analysis of transmission routes of HIV infection, its course and treatment in children with the aim of determining the common problems and solutions. Materials and methods. Observation of 388 HIV-infected children at the age from month to 17 years was held for the purpose of analysis of common problems on the basis of Motherhood and Childhood Department of State Budgetary Healthcare Institution «St. Petersburg Center on Prevention and Control of AIDS and Infectious Diseases». Statistical processing of data was carried out using Statistica for Windows software (v. 8.0). Survey results. It was found that 363 of children were infected with HIV during perinatal period (93,6%), 23% (5,9%) were infected during childbirth and 2 children — through injected drugs (0,5%). Of the 16 children with perinatally acquired AIDS diagnosed in 2017, breastfeeding was reported in 6 (37,5%) cases that evaluates HIV-screening of sexual partners of pregnant women. 378 (97,4%) of children take ART when clinically, immunologically and virologically indicate. Of this number, first line ART regimen is used in 130 children (34,4%). 199 (80,2%) switched to second-line ART regimen due to adverse effects, 49 (19,8%) after virological failure. Prevailing adverse effects such as dyslipidemia (40,8%), polyneuropathy (22,6%) and anemia (12,6%) were a reason for switching to alternative regimen with combined medications. Presently, it is a great problem that parents or foster parents of a child — HIV-dissidents refuse of children care and treatment that led to lethal outcome in 18 cases. In light of this, pediatricians of Centers on Prevention and Control of AIDS have to protect children’s rights for health by making request and applications to the guardianship authorities, courts, prosecutors, law enforcement agencies. 57 appeals to these authorities have been made in total.

scholarly journals Modeling Group Behavior to Study Innovation Diffusion Based on Cognition and Network: An Analysis for Garbage Classification System in Shanghai, China

2019 ◽  
Vol 16 (18) ◽  
pp. 3349
Author(s):  
Junjun Zheng ◽  
Mingyuan Xu ◽  
Ming Cai ◽  
Zhichao Wang ◽  
Mingmiao Yang
Keyword(s):  
Cognitive Ability ◽  
Bounded Rationality ◽  
Innovation Diffusion ◽  
Diffusion Of Innovation ◽  
Classification System ◽  
Group Structure ◽  
Real Life ◽  
Group Behavior ◽  
Practical Significance ◽  
True Value

In real life, garbage has caused great pollution to the environment. A garbage classification system is an effective way to manage this issue, and is an innovation in Shanghai, China. Innovation diffusion is the topic of this paper. This study uses a mathematical statistics method to formulate individual bounded rationality, and uses the specific graph structure of a scale-free network to characterize group structure. Then, a model of group behavior is constructed and the simulation experiment is run on the Python platform. The results show that: (1) In the case of general cognitive ability and high value innovation, most individuals in the group will accept the innovation in the process of innovation dissemination in a garbage classification system after several rounds of the game; (2) it is more helpful to improve the cognitive ability of individuals and the true value of innovation for the diffusion of innovation; and (3) the larger a group, the greater the scope of innovation diffusion and the more time is needed. It is helpful to expand the scope and reduce the time of innovation diffusion by increasing connections among individuals. The innovation of this study is the characterization of individual bounded rationality, which has a certain theoretical value. Meanwhile, the research results of this paper have important practical significance for the promotion of garbage classification, which can be used to popularize the concept of garbage classification.

Sign in / Sign up

Export Citation Format

Share Document