According to the recognition heuristic, people infer that an object they recognize has a higher value on a criterion of interest than an object they do not recognize. This model has been analyzed mathematically and conditions for the less-is-more effect -- where recognizing fewer objects...

A large fraction of bank's assets and debts in developing countries are usually denominated in foreign currencies (e.g. US dollars, euros). Therefore, fluctuations of the exchange rate is likely to affect their financial wealth. The equity-asset ratio is a usual measure of bank's financial...

According to the recognition heuristic, people infer that an object they recognize has a higher value on a criterion of interest than an object they do not recognize. This model has been analyzed and conditions for the less-is-more effect- where recognizing fewer objects increases inferential...

The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in mathematical challenges: simple extensions and...