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Cognitive Hierarchy Theory
Cognitive hierarchy theory (CHT) is a behavioral model originating in behavioral economics and game theory that attempts to describe human thought processes in strategic games. CHT aims to improve upon the accuracy of predictions made by standard analytic methods (including backwards induction and iterated elimination of dominated strategies), which can deviate considerably from actual experimental outcomes. The Level-k Framework Level-k theory is a competing theory to Cognitive Hierarchy Theory but is similar to Cognitive Hierarchy Theory in the sense that player types are drawn from a hierarchy of levels of iterated rationalizability. The hierarchy begins with some very naive type. This completely non-strategic "level-zero" player will choose actions without regard to the actions of other players. Such a player is said to have zero-order beliefs. A one level higher sophisticated type believe the population consists of all naive types. This slightly more sophisticated (the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behavioral Economics
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. Behavioral economics began as a distinct field of study in the 1970s and 1980s, but can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behavioral economics is still growing as a field, being used increasingly in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Quarterly Journal Of Economics
''The Quarterly Journal of Economics'' is a Peer review, peer-reviewed academic journal published by the Oxford University Press for the Harvard University Department of Economics. Its current editors-in-chief are Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer, and Stefanie Stantcheva. History It is the oldest professional journal of economics in the English language, and second-oldest in any language after the . It covers all aspects of the field—from the journal's traditional emphasis on micro-theory to both empirical and theoretical macroeconomics. Reception According to the ''Journal Citation Reports'', the journal has a 2015 impact factor of 6.662, ranking it first out of 347 journals in the category "Economics". It is generally regarded as one of the top 5 journals in economics, together with the ''American Economic Review'', ''Econometrica'', the ''Journal of Political Economy'', and ''The Review of Economic Studies''. Notable papers Some of the most ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Opportunism
300px, ''Opportunity Seized, Opportunity Missed'', engraving by Theodoor Galle, 1605 Opportunism is the practice of taking advantage of circumstances — with little regard for principles or with what the consequences are for others. Opportunist actions are expedient actions guided primarily by self-interested motives. The term can be applied to individual humans and living organisms, groups, organizations, styles, behaviors and trends. Opportunism or "opportunistic behaviour" is an important concept in such fields of study as biology, transaction cost economics, game theory, ethics, psychology, sociology and politics. Etymology In the early 19th century, the term "opportunist" as a noun or adjective was already known and used in several European languages, but initially, it rarely referred to political processes or to a political tendency. The English term "opportunism" is possibly borrowed originally from the Italian expression ''opportunismo''. In 19th-century Itali ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Preferences
Social preferences describe the human tendency to not only care about one's own material payoff, but also the reference group's payoff or/and the intention that leads to the payoff. Social preferences are studied extensively in behavioral and experimental economics and social psychology. Types of social preferences include altruism, fairness, reciprocity, and inequity aversion. The field of economics originally assumed that humans were rational economic actors, and as it became apparent that this was not the case, the field began to change. The research of social preferences in economics started with lab experiments in 1980, where experimental economists found subjects' behavior deviated systematically from self-interest behavior in economic games such as ultimatum game and dictator game. These experimental findings then inspired various new economic models to characterize agent's altruism, fairness and reciprocity concern between 1990 and 2010. More recently, there are growing a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Altruism
Altruism is the concern for the well-being of others, independently of personal benefit or reciprocity. The word ''altruism'' was popularised (and possibly coined) by the French philosopher Auguste Comte in French, as , for an antonym of egoism. He derived it from the Italian , which in turn was derived from Latin , meaning "alterity, other people" or "somebody else". Altruism may be considered a synonym of selflessness, the opposite of self-centeredness. Altruism is an important moral value in many cultures and religions. It can Moral circle expansion, expand beyond care for humans to include other Sentience, sentient beings and future generations. Altruism, as observed in populations of organisms, is when an individual performs an action at a cost to itself (in terms of e.g. pleasure and quality of life, time, probability of survival or reproduction) that benefits, directly or indirectly, another individual, without the expectation of reciprocity or compensation for that ac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nash Equilibrium
In game theory, the Nash equilibrium is the most commonly used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy (holding all other players' strategies fixed). The idea of Nash equilibrium dates back to the time of Cournot, who in 1838 applied it to his model of competition in an oligopoly. If each player has chosen a strategy an action plan based on what has happened so far in the game and no one can increase one's own expected payoff by changing one's strategy while the other players keep theirs unchanged, then the current set of strategy choices constitutes a Nash equilibrium. If two players Alice and Bob choose strategies A and B, (A, B) is a Nash equilibrium if Alice has no other strategy available that does better than A at maximizing her payoff in response to Bob choosing B, and Bob has no other strategy available that does better than B at maximizing his payoff in response to Alice c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Centipede Game
In game theory, the centipede game, first introduced by Robert W. Rosenthal, Robert Rosenthal in 1981, is an extensive form game in which two players take turns choosing either to take a slightly larger share of an increasing pot, or to pass the pot to the other player. The payoffs are arranged so that if one passes the pot to one's opponent and the opponent takes the pot on the next round, one receives slightly less than if one had taken the pot on this round, but after an additional switch the potential payoff will be higher. Therefore, although at each round a player has an incentive to take the pot, it would be better for them to wait. Although the traditional centipede game had a limit of 100 rounds (hence the name), any game with this structure but a different number of rounds is also called a centipede game. The unique subgame perfect equilibrium (and every Nash equilibrium) of these games results in the first player taking the pot on the first round of the game; however, i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Keynesian Beauty Contest
A Keynesian beauty contest is a beauty contest in which judges are rewarded for selecting the ''most popular'' faces among all judges, rather than those they may personally find the most attractive. This idea is often applied in financial markets, whereby investors could profit more by buying whichever stocks they think other investors will buy, rather than the stocks that have fundamentally the best value, because when other people buy a stock, they bid up the price, allowing an earlier investor to cash out with a profit, regardless of whether the price increases are supported by its fundamentals and theoretical arguments. The concept was developed by John Maynard Keynes and introduced in Chapter 12 of his work ''The General Theory of Employment, Interest and Money'' (1936) to explain price fluctuations in equity markets. Overview Keynes described the action of rational agents in a market using an analogy based on a fictional newspaper contest, in which entrants are asked to ch ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Economic Behavior And Organization
The ''Journal of Economic Behavior and Organization'' is an academic journal published by Elsevier. It was started in 1980 by North-Holland, later merged into Elsevier. It publishes research on economic decision and behaviour influence organizations and markets. Abstracting and indexing The journal is abstracted and indexed in the Social Sciences Citation Index. According to the ''Journal Citation Reports'', the journal has a 2020 impact factor of 1.635, ranking it 225th out of 376 journals in the category "Economics". See also * List of economics journals The following is a list of scholarly journals in economics containing most of the prominent academic journals in economics. Popular magazines or other publications related to economics, finance, or business are not listed. A *''Affilia'' *''Af ... References External links * Economics journals English-language journals Academic journals established in 1980 Elsevier academic journals Monthly journals ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strategic Dominance
In game theory, a strategy ''A'' dominates another strategy ''B'' if ''A'' will always produce a better result than ''B'', regardless of how any other player plays. Some very simple games (called straightforward games) can be solved using dominance. Terminology A player can compare two strategies, A and B, to determine which one is better. The result of the comparison is one of: * B strictly dominates (>) A: choosing B always gives a better outcome than choosing A, no matter what the other players do. * B weakly dominates (≥) A: choosing B always gives at least as good an outcome as choosing A, no matter what the other players do, and there is at least one set of opponents' actions for which B gives a better outcome than A. (Notice that if B strictly dominates A, then B weakly dominates A. Therefore, we can say "B dominates A" to mean "B weakly dominates A".) * B is weakly dominated by A: there is at least one set of opponents' actions for which B gives a worse outcome than A, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bounded Rationality
Bounded rationality is the idea that rationality is limited when individuals decision-making, make decisions, and under these limitations, rational individuals will select a decision that is satisficing, satisfactory rather than optimal. Limitations include the difficulty of the problem requiring a decision, the cognitive capability of the mind, and the time available to make the decision. Decision-makers, in this view, act as satisficers, seeking a satisfactory solution, with everything that they have at the moment rather than an optimal solution. Therefore, humans do not undertake a full Cost–benefit analysis, cost-benefit analysis to determine the optimal decision, but rather, choose an option that fulfills their adequacy criteria. Some models of human behavior in the social sciences assume that humans can be reasonably approximated or described as rationality, rational entities, as in rational choice theory or An Economic Theory of Democracy, Downs' political agency model.M ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Game Theory
Game theory is the study of mathematical models of strategic interactions. It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. Initially, game theory addressed two-person zero-sum games, in which a participant's gains or losses are exactly balanced by the losses and gains of the other participant. In the 1950s, it was extended to the study of non zero-sum games, and was eventually applied to a wide range of Human behavior, behavioral relations. It is now an umbrella term for the science of rational Decision-making, decision making in humans, animals, and computers. Modern game theory began with the idea of mixed-strategy equilibria in two-person zero-sum games and its proof by John von Neumann. Von Neumann's original proof used the Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathematical economics. His paper was f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
