Showing 1 - 10 of 16
Persistent link: https://www.econbiz.de/10005409201
In this paper I present conditions, not involving common knowledge of rationality, that lead to (correlated) rationalizability. The basic observation is that, if the actual world belongs to a set of states where the set Z of action profiles is played, everyone is rational and it is mutual...
Persistent link: https://www.econbiz.de/10005413813
When evaluating the rationality of a player in a game one has to examine counterfactuals such as "what would happen if the player were to do what he does not do?" In this paper I develop a model of a normal form game where counterfactuals of this sort are evaluated as in the philosophical...
Persistent link: https://www.econbiz.de/10005458937
The distribution of firms' growth and firms' sizes is a topic under intense scrutiny. In this paper we show that a thermodynamic model based on the Maximum Entropy Principle, with dynamical prior information, can be constructed that adequately describes the dynamics and distribution of firms'...
Persistent link: https://www.econbiz.de/10011268665
This paper provides a solution to Proebsting’s Paradox, an argument that appears to show that the investment rule known as the Kelly criterion can lead a decision maker to invest a higher fraction of his wealth the more unfavorable the odds he faces are and, as a consequence, risk an...
Persistent link: https://www.econbiz.de/10010785381
Can a heterodox economist find arguments in favor of Central Bank independence? Economists currently favor arguments in favor of Central Bank independence based on Barro-Gordon (1983 a,b), a very ‘orthodox' model. Consequently, those who view the economic orthodoxy with suspicion tend to...
Persistent link: https://www.econbiz.de/10011039065
In 2010 the UNDP unveiled a new methodology for the calculation of the Human Development Index (HDI). In this paper I investigate the normative and practical properties of this change vis a vis the original formulation of the HDI in 1990. The main conceptual innovation of the new index can be...
Persistent link: https://www.econbiz.de/10010998917
The Handbook illuminates complex facets of the economic and social provisioning process across the globe. The contributors – academics, policy analysts and practitioners from wide-ranging areas of expertise – discuss the methodological approaches to, and analytical tools for,...
Persistent link: https://www.econbiz.de/10011173850
I examine the work of POLANYI [1957] to extract from it hypotheses related to the emergence and operation of the capitalist system. I adapt models from the literature on complex adaptive systems and evolutionary game theory to build a fictitious society in which I "test" those hypotheses. The...
Persistent link: https://www.econbiz.de/10005582010
In the present paper I introduce the revelation principle of bounded rationality. The principle states that any behavior that a model of bounded rationality exhibits can be implemented as the choice of an agent with preferences and beliefs consistent with Savage-Bayesian rationality. The...
Persistent link: https://www.econbiz.de/10005739903