This paper shows in a model of an economy with goods, labour, bond and money market where prices and wages are fixed but the interest rate is flexible that even in a Keynesian unemployment state an increase in government expenditure will not necessarily increase employment, if production takes...

This paper provides a review of theories of hierarchies in organizations where the rationale for hierarchical organization derives from agents' limited capacities for acquiring and communicating information. In these circumstances, hierarchical organization of agents may serve to reduce the...

This paper applies a proposal of M. Machina (1989) for updating nonexpected utility preferences to D. Schmeidler's (1989) nonadditive probability model. The authors discover that the updated preferences may not themselves satisfy Schmeidler's axioms. Despite this, the updates of uncertainty...