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Money and exchange : folktales and reality

Fayazmanesh, Sasan - 2006

Whether a theoretical system is realistic or not has been a concern in economics, particularly in monetary theory, over … the past century. Following John R. Hicks' proposal that a realistic monetary theory could be constructed along an … basic theories of monetary analysis. Concentrating primarily on certain fundamental building blocks it covers: the theory …

Persistent link: https://www.econbiz.de/10012627049

A general analysis of boundedly rational learning in social networks

Mueller-Frank, Manuel; Neri, Claudia - In: Theoretical economics : TE ; an open access journal in … 16 (2021) 1, pp. 317-357

We analyze boundedly rational learning in social networks within binary action environments. We establish how learning outcomes depend on the environment (i.e., informational structure, utility function), the axioms imposed on the updating behavior, and the network structure. In particular, we...

Persistent link: https://www.econbiz.de/10012415665

Equilibrium contracts and boundedly rational expectations

Schumacher, Heiner; Thysen, Heidi Christina - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 1, pp. 371-414

We study a principal‐agent framework in which the agent forms beliefs about the principal's project based on a misspecified subjective model. She fits this model to the objective probability distribution to predict output under alternative actions. Misspecifications in the subjective model may...

Persistent link: https://www.econbiz.de/10012806946

Bundlers' dilemmas in financial markets with sampling investors

Bianchi, Milo; Jehiel, Philippe - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 2, pp. 545-582

We study banks' incentive to pool assets of heterogeneous quality when investors evaluate pools by extrapolating from limited sampling. Pooling assets of heterogeneous quality induces dispersion in investors' valuations without affecting their average. Prices are determined by market clearing...

Persistent link: https://www.econbiz.de/10012308449

On the complexity of forming mental models

Kendall, Chad; Oprea, Ryan - In: Quantitative economics : QE ; journal of the … 15 (2024) 1, pp. 175-211

We experimentally study how people form predictive models of simple data generating processes (DGPs), by showing subjects data sets and asking them to predict future outputs. We find that subjects: (i) often fail to predict in this task, indicating a failure to form a model, (ii) often cannot...

Persistent link: https://www.econbiz.de/10014496993

Financial overconfidence and high-cost borrowing : the moderating effect of mobile payments

Chawla, Isha; Mokhtari, Manouchehr - In: FinTech 4 (2025) 1, pp. 1-18

Inadequate financial literacy and overconfidence in financial knowledge, coupled with the use of mobile payments (MPs), may contribute to harmful financial behaviors. While the relationship between financial knowledge confidence and financial behaviors is well documented, there is limited...

Persistent link: https://www.econbiz.de/10015332198

Fake news and asset price dynamics

Mignot, Sarah; Pellizzari, Paolo; Westerhoff, Frank H. - In: Jahrbücher für Nationalökonomie und Statistik 244 (2024) 4, pp. 351-379

We explore the impact of fake news on asset price dynamics within the asset-pricing model of Brock and Hommes (Brock, W. A., and C. H. Hommes. 1998. "Heterogeneous Beliefs and Routes to Chaos in a Simple Asset Pricing Model." Journal of Economic Dynamics and Control 22 (8): 1235-74). By...

Persistent link: https://www.econbiz.de/10015326021

Explaining financial crises : a cyclical approach

Radke, Marc Peter - 2005

expectation formation scheme which combines the rational expectations hypothesis with Keynes’ Beauty Contest Theory. …

Persistent link: https://www.econbiz.de/10011927429

Rationality concepts in environmental valuation

Frör, Oliver - 2007

Survey based valuation techniques like the Contingent Valuation Method (CVM) rely particularly on the premise of respondents' rationality when answering willingness to pay (WTP) questions. Results of CVM surveys have repeatedly put this fundamental assumption into question. This study adopts a...

Persistent link: https://www.econbiz.de/10011927450

Constrained versus unconstrained rational inattention

Azrieli, Yaron - In: Games 12 (2021) 1/3, pp. 1-22

The rational inattention literature is split between two versions of the model: in one, mutual information of states and signals are bounded by a hard constraint, while, in the other, it appears as an additive term in the decision maker's utility function. The resulting constrained and...

Persistent link: https://www.econbiz.de/10012432524