This essay provides a perspective on the trend towards integrating psychology into economics. Some topics are discussed, and arguments are provided for why movement towards greater psychological realism in economics will improve mainstream economics.

eing analysed. On the negative side, the semantic correctness of the analysis is seldom established and therefore there is often no formal justification for the program transformations for which the information is used. The semantics based approach [1; 5] is often based on domain theory in the form of abstract domains modelling sets of values, projections, or partial equivalence relations. The approach tends to focus more directly on discovering the extensional properties of interest: for constant propagation it might operate on sets of values with constancy corresponding to singletons, and for neededness analysis it might perform a strictness analysis and use the strictness information for neededness (or make use of the "absence" notion from projection analysis and attempt to discover the di#erence). On the positive side, this usually gives rise to provably correct analyses, although there are sometimes complications (due to deciding what information to stick onto the

the business opportunities. In response to such a demand, this article is to provide a survey, from a database researcher's point of view, on the data mining techniques developed recently. A classification of the available data mining techniques is provided and a comparative study of such techniques

As in previous decades, merger activity clusters by industry during the 1990s. One particular kind of industry shock, deregulation, becomes a dominant factor, accounting for nearly half of the merger activity since the late 1980s. In contrast to the 1980s, mergers in the 1990s are mostly stock swaps, and hostile takeovers virtually disappear. Over our 1973 to 1998 sample period, the announcement-period stock market response to mergers is positive for the combined merging parties, suggesting that mergers create value on behalf of shareholders. Consistent with that, we find evidence of improved operating performance following mergers, relative to industry peers.

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“Having looked at monetary policy from both sides now, I can testify that central banking in practice is as much art as science. Nonetheless, while practicing this dark art, I have always found the science quEite useful.” 2 Alan S. Blinder

Many prominent theorists have argued that accurate perceptions of the self, the world, and the future are essential for mental health. Yet considerable research evidence suggests that overly positive selfevaluations, exaggerated perceptions of control or mastery, and unrealistic optimism are characteristic of normal human thought. Moreover, these illusions appear to promote other criteria of mental health, including the ability to care about others, the ability to be happy or contented, and the ability to engage in productive and creative work. These strategies may succeed, in large part, because both the social world and cognitive-processing mechanisms impose filters on incoming information that distort it in a positive direction; negative information may be isolated and represented in as unthreatening a manner as possible. These positive illusions may be especially useful when an individual receives negative feedback or is otherwise threatened and may be especially adaptive under these circumstances. Decades of psychological wisdom have established contact with reality as a hallmark of mental health. In this view, the wcU-adjusted person is thought to engage in accurate reality testing, whereas the individual whose vision is clouded by illusion is regarded as vulnerable to, if not already a victim of, mental illness. Despite its plausibility, this viewpoint is increasingly difficult to maintain (cf. Lazarus, 1983). A substantial amount of research testifies to the prevalence of illusion in normal human

This paper provides an overview of research and development activities in the field of autonomous agents and multi-agent systems. It aims to identify key concepts and applications, and to indicate how they relate to one-another. Some historical context to the field of agent-based computing

and the application. We illustrate the concept of context widgets with the beginnings of a widget library we have developed for sensing presence, identity and activity of people and things. We assess the success of our approach with two example context-enabled applications we have built and an existing application

We exploit differences in early colonial experience to estimate the effect of institutions on economic performance. Our argument is that Europeans adopted very different colonization policies in different colonies, with different associated institutions. The choice of colonization strategy was, at least in part, determined by the feasibility of whether Europeans could settle in the colony. In places where Europeans faced high mortality rates, they could not settle and they were more likely to set up worse (extractive) institutions. These early institutions persisted to the present. We document these hypotheses in the data. Exploiting differences in mortality rates faced by soldiers, bishops and sailors in the colonies during the 18th and 19th centuries as an instrument for current institutions, we estimate large effects of institutions on income per capita. Our estimates imply that a change from the worst (Zaire) to the best (US or New Zealand) institutions in our sample would be associated with a five fold increase in income per capita.