13 results for “rationality”

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Research ArticleOpen accessIn the abstractPrice-Taking in General EquilibriumMurray C. KempThe Arrow-Debreu and McKenzie existence propositions of 1954 rest on the assumption of price-taking behaviour by households and firms. No attempt was made to justify the assumption or to relate it to other assumptions. It is here suggested that, given other assumptions common to the Arrow-Debreu and McKenzie models, price-taking implies that each household is incompletely informed and/or incompletely rational. … …American Journal of Applied Sciences, Vol. 2, Issue 13 · 22 Dec 2005 · 7,717 accessesView PDF Cite

Research ArticleOpen accessIn the abstractImperfectly-Rational Agents, Volatility of Reserves and Customer MarketsPartha Gangopadhyay, Renu GangopadhyayPotential customers in customer markets are typically dichotomised into actual and prospective customers. If the firm holds its price firm, the actual customers hold their reserves/reservation price firm and repeat their purchases. On the other hand, prospective customers’ reserves may be volatile due to their non-equilibrium market experience. One may regard a prospective buyer with a volatile reserve as imperfectly … …American Journal of Applied Sciences, Vol. 2, Issue 13 · 11 Dec 2005 · 8,206 accessesView PDF Cite

Research ArticleOpen accessIn the abstractPublicly Funded Education and Human Capital in the Presence of a Convex-Concave Education FunctionBinh Tran-Nam, Công Nghê TruongThis study investigates an aggregative optimal growth model in which short-lived individuals obtain their labour skill through education. The process of human capital formation is described by an increasing, convex-concave education function relating the success rate to the educational expenditure per student. The cost of education is publicly funded by an income tax imposed on adult workers. Despite the apparent … …American Journal of Applied Sciences, Vol. 2, Issue 13 · 7 Dec 2005 · 7,869 accessesView PDF Cite