We challenge the standard definition of economic rationality as consistency by making use of a novel distinction between axioms of decision theory: consistency and preference axioms. We argue that this distinction has been overlooked by the literature and, as a result, evidence that consistency...

Artificial Intelligence (AI) scientists are challenged to create intelligent, autonomous agents that can make rational decisions. In this challenge, they confront two questions: what decision theory to follow and how to implement it in AI systems. This paper provides answers to these questions...

On taking the intermediate value theorem (IVT) and its converse as a point of departure, this paper connects the intermediate value property (IVP) to the continuity postulate typically assumed in mathematical economics, and to the solvability axiom typically assumed in mathematical psychology....

Recent studies on decision analytics frequently refer to the topic of behavioral decision making (BDM), which focuses on behavioral components of decision analytics. This paper provides a critical review of literature for re-examining the relations between BDM and classical decision theories in...

Artificial Intelligence (AI) scientists are challenged to create intelligent, autonomous agents that can make rational decisions. In this challenge, they confront two questions: what decision theory to follow and how to implement it in AI systems. This paper provides answers to these questions...

We analyze consumer demand behavior using Dynamic Random Utility Model (DRUM). Under DRUM, a consumer draws a utility function from a stochastic utility process in each period and maximizes this utility subject to her budget constraint. DRUM allows unrestricted time correlation and cross-section...

Bayesian decisions are observationally identical to decisions with judgment. Decisions with judgment test whether a judgmental decision is optimal and, in case of rejection, move to the closest boundary of the confidence interval, for a given confidence level. The resulting decisions condition...

Neuroentrepreneurial management sciences have allied incongruent fields of management and psychology. Leeway of this field complements interface between entrepreneurial business and brain sciences. Neuroentrepreneurial discoveries posture challenge to usual management viewpoint. The foundation...

We consider a standard one-agent decision-making problem under risk and we address the following question: under what conditions is utility maximization equivalent to 'risk' minimization, where the measure of risk used by the decision-maker is a conservative coherent risk measure?

We blend the institutional and social identity theories to explain why foreign companies may endure a differentiated treatment compared to domestic ones. We extend the "liability of foreignness" (LOF) reasoning to the moral domain. Using a survey experiment in Algeria and France, we examine...

Extreme weather events pose an economic threat to farms. The risk management behaviour against such events is often studied using prospect theory as a framework, but empirically deriving corresponding parameters in the field involving farmers is challenging. To address this issue, we compare...

We study informational dissociations between decisions and decision confidence. We explore the consequences of a dual-system model: the decision system and confidence system have distinct goals, but share access to a source of noisy and costly information about a decision-relevant variable. The...

The application of MCDA (Multi-Criteria Decision Analysis) methods spans a wide variety of modern decision situations. These are associated with conflicting DM (Decision-Maker) opinions and values, differing criteria importance, and contrasting performance of the solution alternatives. The DMs...

Decision making is as old as Civilization with Economics being the fulcrum. In a way, undisputedly, economic decision making represents the evolution and revolution of Economics as an accepted extension of Science. Economic decision-making is critical in the sense that a correct tactic needs to...

The paper uses the matching probabilities method to elicit ambiguity perceptions and attitudes to ambiguity in three strategic interactions, a contest, a coordination game, and a Rock-Paper-Scissors game, and a standard Ellsberg setup. We find remarkable stability of attitudes to ambiguity...

Complex and important policy decisions are often made with advice from a committee of experts, where experts first convene and discuss, before finalizing their collective decision with a vote. We show that the voting structure (whether the experts vote sequentially or simultaneously) plays a...

Having information about an uncertain event is crucial for informed decision-making. This paper introduces a simple framework in which 1) a principal uses the reported beliefs of multiple agents to make a decision and 2) the agents reporting a belief are affected by the decision. Naturally, the...

The paper uses the matching probabilities method to elicit ambiguity perceptions and attitudes to ambiguity in three strategic interactions, a contest, a coordination game, and a Rock-Paper-Scissors game, and a standard Ellsberg setup. We find remarkable stability of attitudes to ambiguity...