Our research is a variant of the third party punishment game. In particular, we want to test whether players have heterogeneous preferences; the levels of the sanction and of the transfer are proportional to the unfairness of the Dictator; the change of the role influences the Observer’s reaction to unfair behavior; players’ decision to punish the Dictator and/or to help the Receiver depends on...

Jamal and Sunder (1996) showed that the median prices in double auctions populated by zero-intelligence (ZI) traders whose trading limits are set by two biased heuristics tend to converge to the same equilibrium as if their trading limits were set by applying Bayes’ Rule. This note provides an analytical explanation of why the repeated use of biased heuristics approximates Bayes rule. JEL class...

Geographic Proximity, Trade and International Conflict/Cooperation This paper examines the interactive effect of distance and trade on international conflict and cooperation. The effect of geographic distance depends on trade, while the effect of trade varies with geographic distance. Trade reduces conflict to a greater extent when dyads are geographically close, but has a greater effect on coo...

The present paper analyses the topic of scientific discovery and the problem of the existence of a logical framework involved in such endeavour. We inquire how several non-monotonic logic frameworks and other formalisms can account for such a task. In the same vein, we analyse some key aspects of the historical and theoretical debate surrounding scientific discovery, in particular, the context ...

Trust beliefs are heterogeneous across individuals and, at the same time, persistent across generations. We investigate one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that individuals extrapolate from their own type when forming trust beliefs about the same pool of potential partners i.e., more (less) trustworthy individuals form ...

his paper investigates the conformity of market participants’ decisions with the Islamic codes of conduct from the economic and philosophical perspectives. At the outset, the contributions of the renowned contemporary Muslim philosophers on the epistemological issues between the “is” and the “ought” are presented. Subsequently, a synthesized construct that would resolve the dichotomy between th...