Individuals with identical preferences each receive a signal about the unknown state of the world and decide upon a utility-maximizing recommendation on the basis of that signal. The group makes a decision that maximizes a common utility function assuming perfect pooling of the information in individual signals. An action profile is group action and a recommendation from each individual. A coll...

This article considers three different types of experimental labor contracts. We propose a new type of contract (automatic renewal) in which workers are re-hired if they satisfied the effort level required by the firm. A novel aspect of our experimental design is that workers have the chance of investing money in a long-term project in order to increase their profits. We find that renewable dis...

We test the implications of ambiguity aversion in a principal-agent problem with multiple agents. Models of ambiguity aversion suggest that, under ambiguity, comparative compensation schemes may become more attractive than independent wage contracts. We test this by presenting agents with a choice between comparative reward schemes and independent contracts, which are designed such that under u...

The paper explores utility measures by combining experiments with mathematical derivations in the psychophysics paradigm. The analysis on the ultimatum game experiment reveals evidences for the utility threshold and thus supports Bernoulli’s utility logarithmic law. Both experimental results and theoretical derivations show that the logarithmic law is suitable for the description of commodity c...

The Relationship Between Economic Preferences and Psychological Personality Measures Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use different concepts to capture them. In this review we first analyze the extent to which economic preferences and psychological concepts of personality – such as the Big Five and locus of control – are...

Revealed preference theory offers a criterion for decision-making quality: if decisions are high quality then there exists a utility function that the choices maximize. We conduct a large-scale field experiment that enables us to test for consistency with utility maximization. We find that high-income and high-education subjects display greater levels of consistency than low-income and low-educ...

We use trade data from an online game economy to test the dopaminergic reward prediction error (DRPE) hypothesis: upon buying a game item at a price which is obviously too low, a player should become more active in the trading market. We find that players are more willing to buy goods in the in-game market after such an trade incident. Hence, the effect predicted by the DRPE model is visible. Y...

neuroeconomics that has merged from the interaction of neuroscience, economics and psychology, is. promising new approach to understanding human behavior in economic analysis, especially as an selector (that is the fundamental issue is economics). this article illustrate the advantages of neuroeconomics and with focus on methodology of economics and ability of this branch of economic for theori...

This article answers Dr. Humphrey contention on the similarities between monetarist and Austrian approaches to neutrality of money. Monetarists at most only concentrate short term non while Austrians base their analysis in short, medium long neutrality. For more, monetarists lack a true theory capital that could let then understand thet even with flexible markets money would not be neutral term...

The diverse nature of modern business operations and environment has made it a strategic necessity for organization to have proper understanding the spontaneous activities in their environment. It was based on this notion that study theoretically reviewed literature role structural flexibility corporate responsiveness environment, x-rayed three basic measures responsiveness. Consequently, found...