Article history: Received 16 November 2009 Received in revised form 12 August 2010 Accepted 20 August 2010 Available online 21 October 2010 JEL classification: C72 C92 D80 D84

This paper studies the value anomaly in the context of Malaysia, an emerging economy with a top heavy, closely held, and state-owned institutional setting. We attribute the anomaly to the investment pattern of growth firms. Our empirical analysis illustrates that growth firms have a tendency to hoard cash, delaying the undertaking of their growth options, especially in poor economic environment...

In 1955, Herbert Simon introduced the notion of satisficing: an agent satisfices by searching for alternative that meets aspiration level but does not optimize. We survey more than 60 years advances in understanding satisficing economics, psychology, and management, identifying two research traditions address classes situations: under risk, is typically inferior to optimization strategies model...

We propose the exponential satisficing model of boundedly rational decision-making, a general-purpose tool designed for use in typical microeconomic applications. The posits that preferences perceived and acted upon by agent are stochastic coarsening his or her true, welfare-significant preferences. decision-maker’s perceptual capabilities controlled preference resolution parameter, which smoot...

This paper derives the Nash-equilibrium degrees of commitment to a partnership where lack of full commitment fuels suspicion and increases potential losses for partners. JEL classification: C72, D01, D80 Corresponding Author: Amnon Levy, Economics Discipline, School of Economics and Information Systems, University of Wollongong, Wollongong, NSW 2522, Australia. Tel: 61-2-42213658 Fax: 61-2-4221...

When Cubitt, Munro and Starmer (2004) presented their new experimental investigation of preference reversal, they pointed out that their test results cannot be explained by any of the best-known explanations proposed by economists and psychologists. In this paper we propose a model based on lotteries qualities to explain these new test results. JEL classification: D80.