Daniel C. Dennett ha dedicado una parte considerable de su obra a concebir una aplicación de la ingeniería inversa y el adaptacionismo para explicar la evolución de la mente humana. Dennet considera esta perspectiva como una posibilidad prometedora en el desarrollo de una psicología científica, en contraposición al "materialismo eliminacionista" de la neurociencia. En este artículo se expone una aproximación conceptual y se examina un antecedente filosófico en las discusiones sobre el adaptacionismo en biología y psicología evolutiva: la intencionalidad o (...) teoría de los sistemas intencionales. Daniel C. Dennett has dedicated a great part of his work to the conception of an application of reverse engineering and adaptationism in order to explain the evolution of the human mind. Dennett sees this perspective as a promising possibility in the development of a scientific psychology, in contrast to the "eliminative materialism" of neuroscience. The article provides a conceptual approach and examines a philosophical precedent in the discussions regarding adaptationism in biology and evolutionary psychology: intentionality or the theory of intentional systems. Daniel C. Dennett dedicou uma parte considerável de sua obra a conceber uma aplicação da engenharia inversa e do adaptacionismo para explicar a evolução da mente humana. Dennett considera essa perspectiva como uma possibilidade prometedora no desenvolvimento de uma psicologia científica, em contraposição ao "materialismo eliminacionista" da neurociência. Neste artigo, expõe-se uma aproximação conceitual e examina-se um antecedente filosófico nas discussões sobre o adaptacionismo em biologia e psicologia evolutiva: a intencionalidade ou teoria dos sistemas intencionais. (shrink)

This volume concerns Rational Agents - humans, players in a game, software or institutions - which must decide the proper next action in an atmosphere of partial information and uncertainty. The book collects formal accounts of Uncertainty, Rationality and Agency, and also of their interaction. It will benefit researchers in artificial systems which must gather information, reason about it and then make a rational decision on which action to take.

The volume analyses and develops David Makinson’s efforts to make classical logic useful outside its most obvious application areas. The book contains chapters that analyse, appraise, or reshape Makinson’s work and chapters that develop themes emerging from his contributions. These are grouped into major areas to which Makinsons has made highly influential contributions and the volume in its entirety is divided into four sections, each devoted to a particular area of logic: belief change, uncertain reasoning, normative systems and the resources (...) of classical logic. Among the contributions included in the volume, one chapter focuses on the “inferential preferential method”, i.e. the combined use of classical logic and mechanisms of preference and choice and provides examples from Makinson’s work in non-monotonic and defeasible reasoning and belief revision. One chapter offers a short autobiography by Makinson which details his discovery of modern logic, his travels across continents and reveals his intellectual encounters and inspirations. The chapter also contains an unusually explicit statement on his views on the role of logic in philosophy. (shrink)

This volume is a collection of some of the most important philosophical papers by Peter Gärdenfors. Spanning a period of more than 20 years of his research, they cover a wide ground of topics, from early works on decision theory, belief revision and nonmonotonic logic to more recent work on conceptual spaces, inductive reasoning, semantics and the evolutions of thinking. Many of the papers have only been published in places that are difficult to access. The common theme of all the (...) papers is the dynamics of thought. Several of the papers have become minor classics and the volume bears witness of the wide scope of Gärdenfors’ research and of his crisp and often witty style of writing. The volume will be of interest to researchers in philosophy and other cognitive sciences. (shrink)

The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

In this book some options concerning the greenhouse effect are assessed from a welfarist point of view: business as usual, stabilization of greenhouse gas emissions and reduction by 25% and by 60%. Up to today only economic analyses of such options are available, which monetize welfare losses. Because this is found to be wanting from a moral point of view, the present study welfarizes (among others) monetary losses on the basis of a hedonistic utilitarianism and other, justice incorporating, welfare ethics. (...) For these welfarist evaluations information about the social consequences of the four options are collected from the literature and eventually corrected; then the consequences for individual well-being are assessed based on psychological research about well-being dependent on the social situation of the individual; finally the aggregation formulas of the respective welfare ethics are applied to these data. Assessments by other types of ethics, e.g. Kantian ethic, are included. The strongest abatement option is found to be optimum with great unanimity. - In addition a cost-welfare analysis of greenhouse gas abatement is undertaken revealing efficient cost-welfare ratios for these measures and the most efficient ratio for the strongest option. - A final, more theoretical part discusses the moral obligations following from such evaluations. The notion of 'moral obligation' is explained in a way that, apart from moral goodness of the required act, reinforcement by formal or informal sanctions is another necessary condition for moral obligations. This leads to a conception of a historical morality according to which the demands of morality rise in the long run. Applying this conception to the greenhouse effect implies that presently we have the moral duty to raise the standards of greenhouse gas abatement as much as is politically feasible. (shrink)

Communication and content presents a comprehensive and foundational account of meaning based on new versions of situation theory and game theory. The literal and implied meanings of an utterance are derived from first principles assuming little more than the partial rationality of interacting agents. New analyses of a number of diverse phenomena – a wide notion of ambiguity and content encompassing phonetics, syntax, semantics, pragmatics, and beyond, vagueness, convention and conventional meaning, indeterminacy, universality, the role of truth in communication, semantic (...) change, translation, Frege’s puzzle of informative identities – are developed. Communication, speaker meaning, and reference are defined. Frege’s context and compositional principles are generalized and reconciled in a fixed-point principle, and a detailed critique of Grice, several aspects of Lewis, and some aspects of the Romantic conception of meaning are offered. Connections with other branches of linguistics, especially psycholinguistics, sociolinguistics, historical linguistics, and natural language processing, are explored. -/- The book will be of interest to scholars in philosophy, linguistics, artificial intelligence, and cognitive science. It should also interest readers in related fields like literary and cultural theory and the social sciences. (shrink)

The classical theory of preference among monetary bets represents people as expected utility maximizers with concave utility functions. Critics of this account often rely on assumptions about preferences over wide ranges of total wealth. We derive a prediction of the theory that bears on bets at any fixed level of wealth, and test the prediction behaviorally. Our results are discrepant with the classical account. Competing theories are also examined in light of our data.

This paper analyzes individual probabilistic predictions of state outcomes in the 2008 U.S. presidential election. Employing an original survey of more than 19,000 respondents, ours is the first study of electoral forecasting to involve multiple subnational predictions and to incorporate the influence of respondents’ home states. We relate a range of demographic, political, and cognitive variables to individual accuracy and predictions, as well as to how accuracy improved over time. We find strong support for wishful thinking bias in expectations, as (...) Republicans gave higher probabilities to McCain victories and were worse at overall prediction. In addition, we find that respondents living in states with higher vote shares for Obama performed better at prediction and displayed less wishful thinking bias. We conclude by showing that suitable aggregations of our respondents’ predictions outperformed Intrade (a prediction market) and fivethirtyeight.com (a poll-based forecast) at most points in time. (shrink)

According to normative decision theory there exists a principle of procedure invariance which states that a decision maker's preference order should remain the same, independently of which response mode is used. For example, the decision maker should express the same preference independently of whether he or she has to judge or decide. Nevertheless, previous research in behavioral decision making has suggested that judgments and choices yield different preference orders in both the risky and the riskless domain. In the latter, the (...) prominence effect has been demonstrated. The main purpose of the present series of experiments was to test cognitive explanations which account for the prominence effect. One of the explanations provided a psychological account based primarily on decision-strategy compatibility. Two other explanations built on information structuring approaches. In the first one, the general idea was that decision makers differentiate between alternatives by value and belief restructuring. In the second approach, violations of invariance were assumed to be attributed to the information structure of the task which in many cases demand problem simplification. A prominence effect was in most experiments found for both choices and preference ratings. This finding spöke against the strategy compatibility explanation. Instead, the different forms of cognitive restructuring provided a better account. However, none of these provided a single explanation. Yet, the structure compatibility explanation appeared to be the more viable one, in particular of the relation between experimentäl manipulations and response mode outcomes. The predictions of the value-belief restructuring explanation, on the other hand, seemed to be more valid for the prominence effect found in choice than for preference ratings. (shrink)

This paper develops the concept of the ‘continuum of destructiveness’ in relation to organizational corruption. This notion captures the slippery slope of wrongdoing as actors engage in increasingly dubious practices. We identify four kinds of individuals along this continuum in corrupt organizations, who range from complete innocence to total guilt. They are innocent bystanders, innocent participants, active rationalizers and guilty perpetrators. Traditional explanations of how individuals move from bystander status to guilty perpetrators usually focus on socialization and institutional factors. In (...) addition to these factors, we propose that the very distance between an act and its ethical consequences (ethical distance) may also play a determining role – if not always in the same way – in the transition process. Having developed this conceptual argument, we conclude with a discussion of managerial and research implications. (shrink)

Neuroenhancement involves the use of neurotechnologies to improve cognitive, affective or behavioural functioning, where these are not judged to be clinically impaired. Questions about enhancement have become one of the key topics of neuroethics over the past decade. The current study draws on in-depth public engagement activities in ten European countries giving a bottom-up perspective on the ethics and desirability of enhancement. This informed the design of an online contrastive vignette experiment that was administered to representative samples of 1000 respondents (...) in the ten countries and the United States. The experiment investigated how the gender of the protagonist, his or her level of performance, the efficacy of the enhancer and the mode of enhancement affected support for neuroenhancement in both educational and employment contexts. Of these, higher efficacy and lower performance were found to increase willingness to support enhancement. A series of commonly articulated claims about the individual and societal dimensions of neuroenhancement were derived from the public engagement activities. Underlying these claims, multivariate analysis identified two social values. The Societal/protective highlights counter normative consequences and opposes the use enhancers. The Individual/proactionary highlights opportunities and supports use. For most respondents these values are not mutually exclusive. This suggests that for many neuroenhancement is viewed simultaneously as a source of both promise and concern. (shrink)

Consumers are prone to cognitive biases in decision-making due to the impact of time restrictions, specific environment, and project inducements in the process of experience. Compared with traditional marketing scenarios, it is easy to bias decision makers due to the existence of anchor information. Research on anchoring effect focuses on psychology, economics, law, and medicine instead of the price judgment of consumers. This article uses experimental research to explore the existence and influencing factors of anchoring effect when consumers judge and (...) estimate the price of a product in experiencing scenes. In this article, the hypothesis is that anchoring effect exists and is influenced by factors including anchor value, gender, emotion, personality, knowledge and skill, time pressure, early warning indication, cognitive need, and self-confidence level under external and internal anchor conditions. Subjects judged and estimated different prices after product experience through the design of different decision-making scenarios of external and internal anchors, and finally, the anchoring index and the mean skew index were used to calculate the anchoring effect. The experimental results showed that consumers were affected by anchoring effect when making price judgment in experiencing scenes. In addition to the factors of time pressure and self-confidence level, gender, personality, knowledge, and skill all had a significant influence on anchoring effect under external anchor conditions. Finally, this article provides advice for enterprise marketing planners including setting reasonable anchor values, highlighting the design of experiencing scenes, and developing differentiation strategies. (shrink)

This study examines the antecedents of corporate scandals. Corporate scandals are defined as rare events occurring at the apex of corporate fame when managerial fraud suddenly emerges in conjunction with a significant gap between perceived corporate success and actual economic conditions. Previous studies on managerial fraud have examined the antecedents of illegal acts in isolation from strategic decisions and in terms of CEOs’ individual responses to the external context. This study frames the antecedents of corporate scandals in terms of the (...) interplay of CEOs’ personal traits with corporate strategy and stakeholders’ cohesion. With this aim, this study builds on extant theory to examine the case of Banca Popolare di Lodi, an Italian bank involved in a corporate scandal in year 2005. The model contributes to advance understanding of the complex dynamics underlying the emergence of corporate scandals. (shrink)

Fairness-related decision making is an important issue in the field of decision making. Traditional theories emphasize the roles of inequity aversion and reciprocity, whereas recent research increasingly shows that emotion plays a critical role in this type of decision making. In this review, we summarize the influences of three types of emotions (i.e., the integral emotion experienced at the time of decision making, the incidental emotion aroused by a task-unrelated dispositional or situational source, and the interaction of emotion and cognition) (...) on fairness-related decision making. Specifically, we first introduce three dominant theories that describe how emotion may influence fairness-related decision making (i.e., the wounded pride/spite model, affect infusion model, and dual-process model). Next, we collect behavioral and neural evidence for and against these theories. Finally, we propose that future research on fairness-related decision making should focus on inducing incidental social emotion, avoiding irrelevant emotion when regulating, exploring the individual differences in emotional dispositions, and strengthening the ecological validity of the paradigm. (shrink)

Understanding the behavior of consumers and especially the purchase-related behavior has been a focus of research for the past decades. Thus, researchers and practitioners are curious to know how purchase patterns are different under different conditions such as product category, price, feeling, and so on. The primary focus of this study was to examine how the price of the products influences the purchase behavior of consumers across hedonic and utilitarian categories under regulatory focus theory. The secondary insight was to examine (...) how mood can moderate this impact. We conducted three experimental studies to examine these research questions regarding the preference of consumers of hedonic products when the price is low and at different mood conditions in this purchase process. The results confirmed our hypothesis that product category has a significant impact on purchase choice of products and mood can mediate this impact. In the last section, we discussed the theoretical contribution, strategic insights for product designers and marketers, and possible future research directions. (shrink)

For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically—an effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its robustness is largely undisputed. The effect’s causes, however, have not been thoroughly examined with regard to one important aspect. Due to the construction of the lotteries that were used in the experiments, none of the studies is able to distinguish between MLA and an explanation (...) based on (myopic) loss probability aversion (MLPA). This distinction is important, however, in discussion of the practical relevance and the generalizability of the phenomenon. We designed an experiment that is able to disentangle lottery attractiveness and loss probabilities. Our analysis reveals that mere loss probabilities are not as important in this dynamic context as previous findings in other domains suggest. The results favor the MLA over the MLPA explanation. (shrink)

This paper reviews the most common approaches that have been adopted to analyze and describe loss aversion under prospect theory. Subsequently, it is argued that loss aversion is a property of observable choice behavior and two new definitions of loss averse behavior are advocated. Under prospect theory, the new properties hold if the commonly used utility based measures of loss aversion are corrected by a probability based measure of loss aversion and their product exceeds 1. It is shown that prominent (...) parametric families of weighting functions, while successful in accommodating empirical findings on probabilistic risk attitudes, may not fit well with the theoretical implications of the new loss averse behavior conditions. (shrink)

Buying local is a prominent form of ethical consumption. We commonly assume that products that are local are in some respect ethically superior to ones that are not. This article contributes to research on local food by scrutinizing this assumption in light of some central values of the locavore movement. It identifies four central ethical causes from prior literature on locavorism: protecting the environment, promoting community, promoting small business, and contributing to the prosperity of one’s local economy. It then analyzes (...) whether the contribution of buying local to these causes can justify the general perception that buying local is a good way to be an ethical consumer. Its main finding is that these justifications fail to provide a strong positive ethical reason for consumers in general to adopt the practice of buying local. (shrink)

Research has established that exposure to a combination of diagnostic (i.e., relevant) and nondiagnostic (i.e., irrelevant) information results in predictions that are more regressive than predictions based on diagnostic information (Hackenbrack, 1992; Hoffman and Patton, 1997). This phenomenon has been labeled the dilution effect (e.g., Tetlock and Boettger, 1989) and has been documented when individuals make predictions. This study tests for the dilution effect when small groups make predictions, and examines the effect of using a procedure designed to reduce the (...) dilution effect. Results indicate that group predictions are influenced by nondiagnostic information in the same manner as are individual predictions, and allowing participants to rate the diagnosticity of information prior to making predictions does not reduce the dilution effect. (shrink)

Although various studies have shown thatfarmers believe there is the need for a producer-ledinitiative to address the environmental problems fromagriculture, farmers in several Canadian provinceshave been reluctant to widely participate inEnvironmental Farm Plan (EFP) programs. Few studieshave examined the key issues associated with adoptingEFP programs based on farmers', as opposed to policymakers', perspectives on why producers are reluctantto participate in the program. A study adapting VanRaaij's (1981) conceptual model of the decision-makingenvironment of the firm, and prospect theory on valuefunctions associated (...) with the gains and losses fromrisky choices can be used to characterize how farmersperceive potential risks in environmental farmplanning. This framework can be used to assert thatfarmers are concerned about risks of public disclosureof potentially incriminating environmental informationfrom farms because the EFP program requirements foridentification and extensive documentation of farminformation is perceived by farmers as facilitatingthe accessibility of environmental information to thepublic, and public investigative efforts. Although theEFP program does not explicitly generate informationabout the environmental conditions of a farm nor thedisclosure of such information to the public, itcreates the possibility of generating and divulgingpotentially incriminating information that the farmermay want to treat as confidential. Yet, alone, theserisks of public disclosure concerns should not preventfarmers from participating in the EFP. Awareness ofand participation in environmental farm planning canbe increased if farmers and policy makers understandwhat the risks are, and how they arise. Aspects of theEFP process that have the potential to generate riskof public disclosure concerns relate to farm reviews,documentation and record keeping, and correctiveaction plans. There are legal and policy instrumentsthat can offer various forms of protection and helpminimize such risks, and these need to be assessed. (shrink)

Since the middle of this century, the dominant prescriptive approach to decision theory has been a deductive viewpoint which is concerned with axioms of rational preference and their consequences. After summarizing important problems with the preference primitive, this paper argues for a constructive approach in which information is the foundation for decision-making. This approach poses comparability of uncertain acts as a question rather than an assumption. It is argued that, in general, neither preference nor subjective probability can be assumed given, (...) and that these need to be generated by using the relevant information available to the decision-agent in a given situation. A specific constructive model is discussed and illustrated with a real example from this viewpoint. (shrink)

We theorize that victim anonymity is an important factor in ethical decision making, such that actors engage in more self-interested and unethical behaviors toward anonymous victims than they do toward identifiable victims. Three experiments provided empirical support for this argument. In Study 1, participants withheld more life-saving products from anonymous than from identifiable victims. In Study 2, participants allocated a sum of payment more unfairly when interacting with an anonymous than with an identifiable partner. Finally, in Study 3, participants cheated (...) more from an anonymous than from an identifiable person. Anticipated guilt fully mediated these effects in all three studies. Taken together, our research suggests that anonymous victims may be more likely to incur unethical treatment, which could explain many unethical business behaviors. (shrink)

In the time of the COVID-19 pandemic, people are often faced with uncertain risky choice. Risky choice will be affected by different descriptions of the event’s gain or loss framework, this phenomenon is known as the framing effect. With the continuous expansion and in-depth study of frame effects in the field of risky choice, researchers have found that the are quite different in different situations. People have different interpretations of the same event at different psychological distances, and will also be (...) affected by their own emotions. Therefore, the current study examines the common influence of task frame, spatial distance, and trait emotion on risky choice through two studies. Study 1 used a 2 × 2 inter-subject design, and the dependent variable is the choice of the rescue plan for the classic “Asian disease” problem. The results revealed that trait anger did not predict individuals’ risky choice preferences, and high trait anxiety led individuals to be more risk-averse. The framing effect exists in risky choice, and individuals prefer risk seeking in the loss frame. Study 2 used a 2 × 2 × 2 three-factor inter-subject design in which the dependent variable is the choice of rescue plan. The results indicate that the framing effect also exists in risky choice, and individuals prefer risk seeking in a loss frame. High trait anxiety lead individuals to be more risk-averse, while trait anger has no significant predictive effect on risk preference. Distant spatial distance lead individuals to increase their preference for risk-seeking under the gain frame, which leads to the disappearance of the framing effect. In conclusion, trait anxiety and spatial distance have a certain degree of influence on risky choice under the framework of gain and loss. (shrink)

In many real-world gambles, a non-trivial amount of time passes before the uncertainty is resolved but after a choice is made. An individual may have a preference between gambles with identical probability distributions over final outcomes if they differ in the timing of resolution of uncertainty. In this domain, utility consists not only of the consumption of outcomes, but also the psychological utility induced by an unresolved gamble. We term this utility anxiety. Since a reflective decision maker may want to (...) include anxiety explicitly in analysis of unresolved lotteries, a multiple-outcome model for evaluating lotteries with delayed resolution of uncertainty is developed. The result is a rank-dependent utility representation (e.g., Quiggin, 1982), in which period weighting functions are related iteratively. Substitution rules are proposed for evaluating compound temporal lotteries. The representation is appealing for a number of reasons. First, probability weights can be interpreted as the cognitive attention allocated to certain outcomes. Second, the model disaggregates strength of preference from temporal risk aversion and thus provides some insight into the old debate about the relationship between von Neumann–Morgenstern utility functions and strength of preference value functions. (shrink)

This conceptual article theorizes about the effect of emotions of individual organizational leaders during a period of sustainability-related upheaval within an industry. To illustrate the effect of emotions, it proposes to draw on the model of five stages of grief by Elisabeth Kübler-Ross, a conceptual framework describing terminally ill patients’ responses to their impending death. The authors adapt Kübler-Ross’s taxonomy and use anecdotal evidence from grieving top managers of energy companies in response to the nuclear phase-out in Germany. The article (...) conceptualizes the influence of emotions in the decision-making process of key agents in response to institutional pressures in their field. The article suggests that focusing on emotional influences will add an important dimension to the analysis of sustainability strategies, and discuss implications for further research at an individual and organizational level. (shrink)

Positive and negative feelings were central to the development of economics, especially in utility theory in classical economics. While neoclassical utility theory ignored feelings, behavioral economics more recently reintroduced feelings in utility theory. Beyond feelings, economic theorists use full-fledged specific emotions to explain behavior that otherwise could not be understood or they study emotions out of interest for the emotion itself. While some analyses display a strong overlap between psychological thinking and economic modelling, in most cases there is still a (...) large gap between economic and psychological approaches to emotion research. Ways how to reduce this gap are discussed. (shrink)

Behavioral economics focuses mainly on how limitations of the human cognitive apparatus, risk attitudes, and human sociality affect decision making. The former two lead to deviations from rationality standards, the latter to deviations from rational self-interest. Some of these research interests are also shared by evolutionary psychology which, however, explains the observed deviations by features of the human genetic endowment conjectured to have evolved under fierce selection pressure in early human phylogeny. Important as the decision-making theoretical perspective of the two (...) disciplines is, it will be claimed to be too narrow to fully account for what an evolutionary approach has to say about economic behavior. This is particularly true regarding the questions of what choices are made and what causes them, i.e., the motivational aspects of behavior. In the language of economics this points to the agents’ preferences. This article discusses how preferences relate to the human genetic endowment, how they can change over time, and what conclusions have to be drawn from extending the analysis to the motivational side. (shrink)

Economic theory assumes that preferences are rational. However, experiments have found small violations of transitivity. This paper develops a model of rationality with preference discovery costs. Introspection is costly. Thus, agents may find it optimal to use less than full effort, even though this raises the risk of making a poor choice. This model could potentially explain the intransitivities observed in the data while retaining rationality and optimization.

Until recently, many philosophers took Causal Decision Theory to be more successful than its rival, Evidential Decision Theory. Things have changed, however, with a renewed concern that cases involving an extreme form of decision instability are counterexamples to CDT :392–403, 1984; Egan in Philos Rev 116:93–114, 2007). Most prominent among those cases of extreme decision instability is the Psychopath Button, due to Andy Egan; in that case, CDT recommends a seemingly absurd act that almost certainly results in your death. This (...) renewed attention to decision instability has spurned an array of modifications to and rejections of CDT. I argue, however, that the Psychopath Button and its ilk are no counterexamples to CDT. That is, given the causalist’s commitments in Newcomb Problems, they already have the tools to justify CDT’s verdict in Egan-style cases of extreme decision instability. I first argue that there is no reason to think the Psychopath Button is a counterexample to CDT; in particular, many philosophers have placed too much weight on pre-theoretic intuition in Egan-cases, and apart from pre-theoretic intuition, arguments against CDT in cases of extreme decision instability are flawed. My second claim is that the causalist can provide good reasons for following CDT in cases of extreme decision instability. I present a new case, the Two Button Defense, that highlights precisely why the causalist can reasonably follow CDT in even the Psychopath Button. CDT therefore stands as a viable decision theory, without need for modification, restriction, or rejection. (shrink)

Standard principles of rational decision assume that an option's utility is both comprehensive and accessible. These features constrain interpretations of an option's utility. This essay presents a way of understanding utility and laws of utility. It explains the relation between an option's utility and its outcome's utility and argues that an option's utility is relative to a specification of the option. Utility's relativity explains how a decision problem's framing affects an option's utility and its rationality even for an agent who (...) is cognitively perfect and lacks only empirical information. The essay rewrites standard laws of utility to accommodate relativization to propositions' specifications. The new laws are generalizations of the standard laws and yield them as special cases. (shrink)

One resolution of the St. Petersburg paradox recognizes that a gamble carries a risk sensitive to the gamble's stakes. If aversion to risk increases sufficiently fast as stakes go up, the St. Petersburg gamble has a finite utility.

This study aimed to explore the influence the value modularity and a firm’s innovation performance, directly and indirectly, using knowledge management as mediating variable. Moreover, in this study, we used the resource integration ability as a moderator between the relationship value modularity and firm innovation performance. We collected data from the Chinese state-owned and state-controlled high-tech firms from 2011 to 2018. In this study, we used the gray comprehensive evaluation method to test the degree of value modularity, and hierarchical regression (...) analysis is used to analyze the relationship among variables. The outcomes of this study indicate that value modularity and firm innovation performance has inverted U-shaped and significant association. Similarly, results also confirm that knowledge acquisition and knowledge internalization mediate the relationship between value modularity and firm innovation performance. The finding of this research also confirms that resource integration ability negatively affects the relationship between value modularity and firm innovation performance. This paper enriches the research of the value modularity and gives certain inspiration to knowledge management. At the end of this study, we also suggest some significant practical implications. (shrink)