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

W. Bentley Macleod

doi:10.2307/136215

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

W. Bentley Macleod

Research output: Contribution to journal › Article › peer-review

26 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 language	English (US)
Pages (from-to)	788-810
Number of pages	23
Journal	Canadian Journal of Economics
Volume	29
Issue number	4
DOIs	https://doi.org/10.2307/136215
State	Published - Nov 1996
Externally published	Yes

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.2307/136215

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

Abstract

All Science Journal Classification (ASJC) codes

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