activities such as rent seeking or organized crime. This allocation is heavily influenced by the relative payoffs society offers to such activities. This implies that policy can influence the allocation of entrepreneurship more effectively than it can influence its supply. Historical evidence from ancient

We propose a theory of securities market under- and overreactions based on two well-known psychological biases: investor overconfidence about the precision of private information; and biased self-attribution, which causes asymmetric shifts in investors ’ confidence as a function of their investment

This paper presents evidence showing that individuals' season of birth is related to their educational attainment because of the combined effects of school start age policy and compulsory school attendance laws. In most school districts, individuals born in the beginning of the year start

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and Panagariya (L&P, 2007) modify Grossman and Helpman's (G&H, 1994) lobbying model in an attempt to understand why anti-trade bias (as opposed to pro-trade bias, which is predicted by the G&H (1994) model) is the predominant pattern in observed trade policy. L&P (2007) propose

Q-learning is a very popular reinforcement learning algorithm be-ing proven to converge to optimal policies in Markov decision pro-cesses. However, Q-learning shows artifacts in non-stationary en-vironments, e.g., the probability of playing the optimal action may decrease if Q-values deviate

Abstract By now it is widely accepted that learning a task from scratch, i.e., without any prior knowledge, is a daunting undertaking. Humans, however, rarely attempt to learn from scratch. They extract initial biases as well as strategies how to approach a learning problem from instructions and

to interviewer bias and its results were totally inconsistent with the experimental measures of risk aversion. Experimental measures indicate that, at high payoff levels, virtually all individuals are moderately risk-averse with little variation according to personal characteristics. Wealth tends to reduce risk

Measurement is a key issue in the literature on price incentive bias induced by trade policy.We intro-duce a general equilibriummeasure of the relative effective rate of protection,which generalizes earlier protection measures. For our fifteen sample countries, results indicate

Until recently, the debate on the relationship between...