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This paper introduces a new theoretic entity, a nominalist heuristic, defined as a focus on prominent numbers, indices or ratios. Abstractions used in the evaluation stage of decision making typically involve nominalist heuristics that are incompatible with expected utility theory which excludes...
Persistent link: https://www.econbiz.de/10004964146
The prior paper in this sequel, Pope (2009) introduced the concept of a nominalist heuristic, defined as a focus on prominent numbers, indices or ratios. In this paper the concept is used to show three things in how scientists and practitioners analyse and evaluate to decide (conclude). First,...
Persistent link: https://www.econbiz.de/10004964148
.  This paper traces the unintended travesties to problems   of complexity and uncertainty, problems that implicitly are …
Persistent link: https://www.econbiz.de/10005001491
complexity and properties of the underlying structures, as the existence of large grids, non-regularities and inhomogeneous … parametric complexity theory and analyse its impact in financial risk management. It is shown that selected real-world problems … reasons for the proved complexity. We show how selected risk management methods fit into the picture of our complexity …
Persistent link: https://www.econbiz.de/10005345743
- uncertainty, complexity and rank. First, the concept of epistemic uncertainty is sufficient for modeling and the concept of … categorization for mutual funds is presented. Second, the concept of (linear) system complexity is usually dealt with by presuming a …
Persistent link: https://www.econbiz.de/10005119076
circle: (i) increasing complexity; (ii) wicked characteristics of policies; (iii) heigthening role of psychological factors …
Persistent link: https://www.econbiz.de/10010414861
complexity metrics, we find that all three patterns are well organized by metrics suggested by Lipman (1995) and Gabaix (2014 …
Persistent link: https://www.econbiz.de/10014496993
We study two dimensions of complexity that may interfere with individual choice. The first one is object complexity … complexity, which increases when suboptimal alternatives become more similar to optimal ones. We develop a satisficing …, as the object complexity of an optimal (suboptimal) alternative increases, it becomes less (more) likely to be chosen …
Persistent link: https://www.econbiz.de/10012602341
Interacting agents in finance represent a behavioral, agent-based approach in which financial markets are viewed as complex adaptive systems consisting of many boundedly rational agents interacting through simple heterogeneous investment strategies, constantly adapting their behavior in response...
Persistent link: https://www.econbiz.de/10011348701
Using field and laboratory experiments, we demonstrate that the complexity of incentive schemes and worker bounded … rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to … cause large shifts in behavior. Our results illustrate important implications of complexity for designing and regulating …
Persistent link: https://www.econbiz.de/10014311541