Tax evasion analysis is typically based on an expected utility theory (EUT) framework. However, this leads to several qualitative and quantitative puzzles. Given actual probabilities of audit and penalty rates the return on evasion ranges from 91-98 percent. So why don’t most of us evade? Furthermore, an EUT based analysis predicts that we should evade less as the tax rate increases (Yitzhaki p...

This paper proposes an optimal selection method to address the real-world problem of environmentally friendly supplier selection, based on prospect theory. This study adopted the manufacturer’s point of view, and considered the manufacturer’s psychological and behavioral factors in the process of choosing suppliers. The first step was to build supplier-selection indexes for manufacturers. Then,...

We examine the value of an exploration prospect that is to be exploited via a series of possibly dependent trials. Failure on any particular trial is assumed to convey bad news, but also provides an option to try again. The pattern and strength of dependence among trials determines the value of this option, and therefore also influences the value of the underlying prospect. We describe the solu...

A standard requirement of rationality is that preferences obey stochastic dominance. In this paper, we investigate a new variety of dominance violation from the domain of uncertainty. We find that subjects systematically value a packed prospect, $x if one of two mutually exclusive events E1 or E2 obtains, less than an unpacked and dominated prospect, $x if E1 obtains, and $x−ε if E2 obtains. We...

English language teaching market (ELT) inundated with course book packages containing astudent’s book, a teacher’s guide, workbooks, CD’s, videos, and test materials. A host ofresearchers have focused on course book evaluation and analysis and considered the selectionand evaluation of materials as an essential procedure in order to enhance out comes for thelearners who use them. This study thru...