Journal ArticleDOI
Beauty contested: how much of Keynes' remains in behavioural economics' beauty contests?
Reads0
Chats0
TLDR
In this paper, the authors identify several types of BCs and propose a taxonomy, and they also suggest that, in spite of these differences, Keynes' theory of decision under uncertainty is central to understanding the actual behaviour observed in experimental BCs.Abstract:
In one of the most famous passages of the economic literature, John Maynard Keynes likens the stock market to a beauty contest (BC), in which the winners are those who anticipate the average opinion. In behavioural economics there have recently been attempts at investigating the BC experimentally. We argue that there exist important differences between Keynes' and behavioural economics' BCs. We identify several types of BCs and propose a taxonomy. We also suggest that, in spite of these differences, Keynes' theory of decision under uncertainty is central to understanding the actual behaviour observed in experimental BCs.read more
Citations
More filters
Journal ArticleDOI
From ‘Tiger’ to ‘PIIGS’: Ireland and the use of heuristics in comparative political economy
Samuel Brazys,Niamh Hardiman +1 more
TL;DR: This article examined the consequences of the narrative construction of the group of countries that has been grouped as "PIIGS" (Portugal, Ireland, Italy, Greece and Spain) for their sovereign debt risk rating.
Posted Content
From Tiger to PIIGS: Ireland and the use of heuristics in comparative political economy
Samuel Brazys,Niamh Hardiman +1 more
TL;DR: In this paper, the authors examine the narrative construction of the group of countries that has been grouped as "PIIGS" (Portugal, Ireland, Italy, Greece, and Spain), and assess the merits of classifying these countries together.
Proceedings ArticleDOI
Rational expectations in games
TL;DR: In this paper, the authors define a game situation as a game together with such beliefs; call the beliefs and i's resulting expectation rational if there is common knowledge of rationality and a common prior.
Journal ArticleDOI
LIBOR as a Keynesian beauty contest:a process of endogenous deception
TL;DR: In this paper, the authors used the Keynesian Beauty Contest as a theoretical framework to analyse the London Interbank Offered Rate (LIBOR) fixing mechanism, where the actual money market rate is seen as a fundamental value towards which the LIBOR should aim.
Journal ArticleDOI
Behavioral Foundations for the Keynesian Consumption Function
TL;DR: The authors show that behavioral rather than maximizing principles emerge from textual analysis as the microeconomic foundations for Keynes's Consumption Theory and demonstrate the possibility of grounding a Keynesian-type aggregate consumption function on the basis of (some of) the principles underlying contemporary behavioral models.
References
More filters
Book
The Strategy of Conflict
TL;DR: In this paper, the authors propose a theory of interdependent decision based on the Retarded Science of International Strategy (RSIS) for non-cooperative games and a solution concept for "noncooperative" games.
Posted Content
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
TL;DR: It is argued that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades.
Journal ArticleDOI
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
TL;DR: In this paper, the authors argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades, where an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information.
Journal ArticleDOI
Learning from the behavior of others : conformity, fads, and informational cascades
TL;DR: The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior, which can help explain some otherwise puzzling phenomena about human behavior.