In an exchange economy with no aggregate uncertainty, and Bayesian agents, Pareto optimal allocations provide full insurance if and only if the agents have a common prior. It is hard to explain why there is relatively so little betting taking place. One is led to ask, when are full insurance...

This paper reports on part of an investigation designed to determine if Australian consumers expend upon non-durable goods and services in an optimizing or satisficing manner. In doing so, our analysis finds empirical evidence to support the recently developed Post Keynesian model of consumer...

This note is an invitation to academic economists to broaden the way in which we presant and interpret the household's optimization problem to out students in Microeconomics course. It suggests that while maximizing utility subject to a budget constraint is mathematically equivalent to...