Related papers: Defaults: a double-edged sword in governing common…

We analyze and quantify, in a financial market with parameter uncertainty and for a Constant Relative Risk Aversion investor, the utility effects of two different boundedly rational (i.e., sub-optimal) investment strategies (namely, myopic…

The adaptation to situations of sequential choice under uncertainty of decision criteria which deviate from (subjective) expected utility raises the problem of ensuring the selection of a nondominated strategy. In particular, when following…

A growing body of empirical evidence indicates that social and cooperative behavior can be affected by cognitive and neurological factors, suggesting the existence of state-based decision-making mechanisms that may have emerged by…

A stylized experiment, the public goods game, has taught us the peculiar reproducible fact that humans tend to contribute more to shared resources than expected from economically rational assumptions. There have been two competing…

Understanding the origins of volunteerism and free-riding is crucial in collective action situations where a sufficient number of cooperators is necessary to achieve shared benefits, such as in vaccination campaigns and social change…

Participatory budgeting refers to the practice of allocating public resources by collecting and aggregating individual preferences. Most existing studies in this field often assume an additive utility function, where each individual holds a…

Poor research design and data analysis encourage false-positive findings. Such poor methods persist despite perennial calls for improvement, suggesting that they result from something more than just misunderstanding. The persistence of poor…

In reinforcement learning, a decision needs to be made at some point as to whether it is worthwhile to carry on with the learning process or to terminate it. In many such situations, stochastic elements are often present which govern the…

This paper discusses the role of opportunistic punisher who may act selfishly to free-ride cooperators or not to be exploited by defectors. To consider opportunistic punisher, we make a change to the sequence of one-shot public good game;…

To choose between two discrete goods, a consumer pays attention to only those with prices below a threshold. From these, she chooses her most preferred good. We assume consumers in a population have the same preference but may have…

Resources are often limited, therefore it is essential how convincingly competitors present their claims for them. Beside a player's natural capacity, here overconfidence and bluffing may also play a decisive role and influence how to share…

The ever-growing size of the foundation language model has brought significant performance gains in various types of downstream tasks. With the existence of side-effects brought about by the large size of the foundation language model such…

How individuals adapt their behavior in cultural evolution remains elusive. Theoretical studies have shown that the update rules chosen to model individual decision making can dramatically modify the evolutionary outcome of the population…

With an evolutionary approach, the basis of morality can be explained as adaptations to problems of cooperation. With 'evolution' taken in a broad sense, AIs that satisfy the conditions for evolution to apply will be subject to the same…

We introduce the general arbitrage-free valuation framework for counterparty risk adjustments in presence of bilateral default risk, including default of the investor. We illustrate the symmetry in the valuation and show that the adjustment…

Conjoint experiments randomize multidimensional profiles, offering a powerful design for recovering structural preference parameters -- including marginal rates of substitution, willingness to pay, and the distribution of preferences across…

Individuals use models to guide decisions, but many models are wrong. This paper studies which misspecified models are likely to persist when individuals also entertain alternative models. Consider an agent who uses her model to learn the…

Tolerance implies enduring trying circumstances with a fair and objective attitude. To determine whether evolutionary advantages might be stemming from diverse levels of tolerance in a population, we study a spatial public goods game, where…

We design and implement lab experiments to evaluate the normative appeal of behavior arising from models of ambiguity-averse preferences. We report two main empirical findings. First, we demonstrate that behavior reflects an incomplete…

In classical contagion models, default systems are Markovian conditionally on the observation of their stochastic environment, with interacting intensities. This necessitates that the environment evolves autonomously and is not influenced…