This paper explores whether the power of arbitrage to induce more rational behavior in market and nonmarket settings extends to diverse decision-making tasks over preferences for gambles. We examine how arbitrage in a preference reversal setting affects behavior for the valuation of low probability food safety risks, the Allais Paradox, and the Ellsberg paradox. We design a three-stage experime...

This chapter discusses the concept of bounded rationality as it is understood in the tradition of H.A. Simon. Fundamental problems and theoretical issues are presented, with special emphasis on aspiration adaptation theory. Further remarks concern basic modes of decision behavior (like learning and expectation formation), reasoning, and the connection between bounded rationality and motivation.

We provide a sound and complete axiomatization for a class of logics appropriate for reasoning about the rationality of players in games. Essentially the same axiomatization applies to a wide class of decision rules.

The majority of people infected with T. cruzi show some sign or symptom at the time of infection and in a small number of cases acute Chagas disease can be fatal. But for the majority, the symptoms go unnoticed for years and those infected experience no further problems. It is estimated that approximately 70 per cent of these people live with the parasite without their health being affected. Ne...

As an idea of learning and a mode of learning, e-learning dramatically highlights the subjectivity of the learners and make value rationality known. Meanwhile, value rationality appears damage and breaking in this process. Therefore, it is necessary to make learners fully exert subjective activity and intensify effective supervision on e-learning to construct e-learning and value rationality ha...

In order to inspect the correctness of workflow during process design and avoid exceptions after processes run, this study provides rationality Validation Algorithm based on Petri Net. Firstly the study points out the necessity of rationality validation in workflow model, then analyzes all kinds of existing validation algorithm of workflow model rationality and emphatically describes a validati...

Roth (1977) axiomatized the Nash (1950) bargaining solution without Pareto optimality, replacing it by strong individual rationality in Nash’s axiom list. In a subsequent work (Roth, 1979) he showed that when strong individual rationality is replaced by weak individual rationality, the only solutions that become admissible are the Nash and the disagreement solutions. In this paper I derive anal...

In this paper an adaptive decision model based on predictive loops through feeling states is analysed from the perspective of rationality. Hebbian learning is considered for different types of connections in the decision model. To assess the extent of rationality, a measure is introduced reflecting the environment’s behaviour. Simulation results and the extents of rationality of the different m...

If R, S, T are irreducible SL3(C)-representations, we give an easy and explicit description of a basis of the space of equivariant maps R⊗S → T (Theorem 3.1). We apply this method to the rationality problem for invariant function fields. In particular, we prove the rationality of the moduli space of plane curves of degree 34. This uses a criterion which ensures the stable rationality of some qu...