Decision, contract, and emotion: Some economics for a complex and confusing world

Research output: Contribution to journalArticlepeer-review

25 Scopus citations

Abstract

This essay illustrates that if Savage's small world assumption is relaxed, one can construct a theory of bounded rationality that incorporates some of the insights from recent work in cognitive psychology. The theory can be used to explain why contracts are incomplete and the existence of endowment effects in exchange.

Original languageEnglish (US)
Pages (from-to)788-810
Number of pages23
JournalCanadian Journal of Economics
Volume29
Issue number4
DOIs
StatePublished - Nov 1996
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Decision, contract, and emotion: Some economics for a complex and confusing world'. Together they form a unique fingerprint.

Cite this