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Shared Mental Models: Ideologies and Institutions

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Author Info
Denzau, Arthur T
North, Douglass C

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Abstract

For most of the interesting issues in political and economic markets, uncertainty rather than risk characterizes choice-making. In order to understand decision-making under conditions of strong uncertainty, we must understand the relationship between the mental models that individuals construct to make sense of the world around them, the ideologies that evolve from such constructions, and the institutions that develop in a society to order interpersonal relationships. This paper develops a framework with which to understand and model the shared mental models that guide choices and shape the evolution of political-economic systems and societies. Copyright 1994 by WWZ and Helbing & Lichtenhahn Verlag AG

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Article provided by Blackwell Publishing in its journal Kyklos.

Volume (Year): 47 (1994)
Issue (Month): 1 ()
Pages: 3-31
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Handle: RePEc:bla:kyklos:v:47:y:1994:i:1:p:3-31

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Penny Burns, 1985. "Experience and Decision Making: A Comparison of Students and Businessmen in a Simulated Progressive Auction," Framed Field Experiments 0016, The Field Experiments Website.
  2. Jamal, K. & Sunder, S., 1988. "Money Vs. Gaming: Effects Of Salient Monetary Payments In Double Oral Auctions," GSIA Working Papers 88-89-16, Carnegie Mellon University, Tepper School of Business.
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  3. North, Douglass C, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter. [Downloadable!] (restricted)
  4. Sunder, S., 1992. "Lower Bounds for Efficiency of Surplus Extraction in Double Auctions," GSIA Working Papers 1992-17, Carnegie Mellon University, Tepper School of Business.
  5. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October. [Downloadable!] (restricted)
  6. Coursey, Don L & Mason, Charles F, 1987. "Investigations Concerning the Dynamics of Consumer Behavior in Uncertain Environments," Economic Inquiry, Oxford University Press, vol. 25(4), pages 549-64, October.
  7. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211. [Downloadable!] (restricted)
  8. Hahn, F H, 1987. "Information, Dynamics and Equilibrium," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(4), pages 321-34, November.
  9. Gode, D.K. & Sunder, S., 1991. "Allocative Efficiency of Markets with Zero Intelligence (Z1) Traders: Market as a Partial Substitute for Individual Rationality," GSIA Working Papers 1992-16, Carnegie Mellon University, Tepper School of Business.
  10. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September. [Downloadable!] (restricted)
  11. Dhananjay, K.G. & Sunder, S., 1992. "A Comparative Analysis of Efficiency of Economic Institutions with Zero Intelligence Traders," GSIA Working Papers 1992-23, Carnegie Mellon University, Tepper School of Business.
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