In this paper we show Case-based Decision Theory (Gilboa and Schmeidler, 1995) can explain the aggregate dynamics of cooperation in the repeated Prisoner’s Dilemma, as observed in the experiments performed by Camera and Casari (2009). Moreover, we find CBDT provides a better fit to the dynamics of cooperation than does the existing Probit model, which is the first time such a result has been fo...

Manipulation of Choice Behavior We introduce and study the problem of manipulation of choice behavior. In a class of twostage models of decision making, with the agent’s choices determined by three “psychological variables,” we imagine that a subset of these variables can be selected by a “manipulator.” To what extent does this confer control of the agent's behavior? Within the specified framew...

Ranking finite subsets of a given set X of elements is the formal object of analysis in this paper. This problem has found a wide range of economic interpretations in the literature. The focus of the paper is on the family of rankings that are additively representable. Existing characterizations are too complex and hard to grasp in decisional contexts. Furthermore, Fishburn [13] showed that the...

This paper introduces a model of Bayesian decision making where a person’s beliefs about the likelihood of different outcomes depend upon the anticipated payoff consequences of those outcomes. Based on the twin assumptions of consequentialism and invariance to additive shifts in payoffs, I characterize the unique representation of payoffdependent beliefs. For agents in the model the desirabilit...

Preferences for Redistribution and Pensions: What Can We Learn from Experiments? Redistribution is an inevitable feature of collective pension schemes and economic experiments have revealed that most people have a preference for redistribution that is not merely inspired by self-interest. Interestingly, little is known on how these preferences interact with preferences for different pension sch...

On the Origin of the Family This paper presents an overlapping generations model to explain why humans live in families rather than in other pair groupings. Since most non-human species are not familial, something special must be behind the family. It is shown that the two necessary features that explain the origin of the family are given by uncertain paternity and overlapping cohorts of depend...

The assumption of the stability of preferences is a fundamental one in the theory of the consumer. Many papers within the stated preferences literature have tested this assumption, and have found mixed results. Individuals may become more sure of their preferences as they repeat a valuation task or purchase decision; they may also learn more about prices and quantities of substitutes or complem...

Revealed preference is the dominant approach for inferring preferences, but it relies on discrete, stochastic choices. The choice process also produces response times (RTs) which are continuous and can often be observed in the absence of informative choice outcomes. Moreover, there is a consistent relationship between RTs and strength-of-preference, namely that people make slower decisions as t...