Prior knowledge and monotone decision problems

C-Tier
Journal: Economics Letters
Year: 2019
Volume: 175
Issue: C
Pages: 15-18

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper identifies cognitive conditions under which a rational individual or group decision-maker will want to commit ex ante to some choice restrictions, in order to get extra information about an uncertain state of nature. We show that the implemented limitations will then bring her to solve a monotone decision problem. This provides a behavioral/microeconomic foundation for the recurrence of this type of problem in many contexts. From another angle, the analysis explains why and when individuals and organizations resort to automatic responses or routines in some circumstances, and how this can shape their environment.

Technical Details

RePEc Handle
repec:eee:ecolet:v:175:y:2019:i:c:p:15-18
Journal Field
General
Author Count
1
Added to Database
2026-01-29