States of nature and states of mind:a generalized theory of decision-making

Embrey, Iain (2020) States of nature and states of mind:a generalized theory of decision-making. Theory and Decision, 88 (1). pp. 5-35. ISSN 0040-5833

Full text not available from this repository.

Abstract

Canonical economic agents act so as to maximize a single, representative, utility function. However, there is accumulating evidence that heterogeneity in thought processes may be an important determinant of individual behavior. This paper investigates the implications of a vector-valued generalization of the Expected Utility paradigm, which permits agents either to deliberate as per Homo economics, or to act impulsively. This generalized decision theory is applied to explain the crowding-out effect, irrational educational investment decisions, persistent social inequalities, the pervasive influence of non-cognitive ability on socio-economic outcomes, and the dynamic relationships between non-cognitive ability, cognitive ability, and behavioral biases. These results suggest that the generalized decision theory warrants further investigation.

Item Type: Journal Article
Journal or Publication Title: Theory and Decision
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/1700/1706
Subjects:
Departments: Lancaster University Management School > Economics
ID Code: 134612
Deposited By: ep_importer_pure
Deposited On: 22 Jun 2019 09:15
Refereed?: Yes
Published?: Published
Last Modified: 20 Feb 2020 04:14
URI: https://eprints.lancs.ac.uk/id/eprint/134612

Actions (login required)

View Item View Item