This paper develops a dual-self model that is compatible with modern dynamic macroeconomic theory and evidence, and shows how it leads to a wide range of behavioral anomalies concerning risk, including the Allais paradox. We calibrate the model to obtain a quantitative fit, by extending the simpler “nightclub” model of Fudenberg and Levine [2006] by introducing consumption commitment. We find t...

This paper argues that ERP systems take the part of an organization’s administrative paradox. An administrative paradox is two sides of the same coin when coordinating organizations – the concurrent striving for flexibility and stability. The analysis of the ERP system is based on an interpretative and qualitative case study of an engineering firm. The theoretical lens used in this paper is str...

Non-renewable and renewable resources are imperfect substitutes due to technical and geographical constraints. What is the role of imperfect substitution on the optimal transition path to the clean technologies? We address this question by characterizing the optimal growth path and resource use of an economy. We show that the economy initially starts with using the non-renewable and renewable r...

Copyright © 2001, Idea Group Publishing. The research effort on Electronic Patient Records (EPRs) has rapidly increased in the last decade. Much of this research focussed on standardisation and technical realizations. We will describe such a research effort in this chapter and evaluate its success. Our main finding is that the lack of success of this specific research effort is mainly due to it...

The well-known Braess paradox in congestion games states that adding an additional road to a transportation network may increase the total travel time, and consequently decrease the overall efficiency. Motivated by this, this paper presents a paradox in a similar spirit emerging from another distributed resource allocation game on networks, namely the power allocation game between countries dev...

The twin paradox, as well other paradoxes, are not solved. The long term resistance of the paradoxes shows, that the discussions will remain until the Second Coming. How then one can grasp the problem? This question as well technical proves of the twin paradox one finds in this paper. There is link to the experimental paper on the Ehrenfest Paradox. It is something huge, people, please read all...

We introduce and analyze expected uncertain utility theory (EUU). A prior and an interval utility characterize an EUU decision maker. The decision maker uses her subjective prior to transform each uncertain prospect f into an interval-valued prospect f which assigns an interval [x, y] of prizes to each state. The decision maker ranks prospects according to their expected interval utilities E(u(...

Parrondo’s paradox arises in sequences of games in which a winning expectation may be obtained by playing the games in a random order, even though each game in the sequence may be lost when played individually. We present a suitable version of Parrondo’s paradox in reliability theory involving two systems in series, the units of the first system being less reliable than those of the second. If ...