Costs of choice: reformulating price theory without heroic assumptions
Author
Abstract
Suggested Citation
DOI: 10.1007/s11127-025-01265-6
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Peter J. Boettke & Christopher J. Coyne & Peter T. Leeson, 2015.
"Institutional stickiness and the New Development Economics,"
Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 6, pages 123-146,
Edward Elgar Publishing.
- Peter J. Boettke & Christopher J. Coyne & Peter T. Leeson, 2008. "Institutional Stickiness and the New Development Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(2), pages 331-358, April.
- Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201703080800001022, Iowa State University, Department of Economics.
- Robert J. Aumann, 1999. "Interactive epistemology II: Probability," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(3), pages 301-314.
- Grossman, Sanford J & Stiglitz, Joseph E, 1980.
"On the Impossibility of Informationally Efficient Markets,"
American Economic Review, American Economic Association, vol. 70(3), pages 393-408, June.
- Sanford J Grossman & Joseph E Stiglitz, 1997. "On the Impossibility of Informationally Efficient Markets," Levine's Working Paper Archive 1908, David K. Levine.
- R. H. Coase, 2013.
"The Problem of Social Cost,"
Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
- Ronald H. Coase, 1960. "The Problem of Social Cost," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 5, pages 87-137, Palgrave Macmillan.
- Karen I. Vaughn, 2014. "Buchanan as Subjectivist," Southern Economic Journal, John Wiley & Sons, vol. 80(4), pages 918-925, April.
- Leigh Tesfatsion, 2017.
"Modeling economic systems as locally-constructive sequential games,"
Journal of Economic Methodology, Taylor & Francis Journals, vol. 24(4), pages 384-409, October.
- Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201707110700001022, Iowa State University, Department of Economics.
- Tesfatsion, Leigh, 2017. "Modeling economic systems as locally-constructive sequential games," ISU General Staff Papers 201712010800001022, Iowa State University, Department of Economics.
- Frank H. Knight, 1928. "A Suggestion for Simplifying the Statement of the General Theory of Price," Journal of Political Economy, University of Chicago Press, vol. 36(3), pages 353-353.
- Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey: Part I," Economic Inquiry, Western Economic Association International, vol. 14(2), pages 155-189, June.
- Farmer, J. Doyne & Axtell, Robert L., 2022. "Agent-Based Modeling in Economics and Finance: Past, Present, and Future," INET Oxford Working Papers 2022-10, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
- Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-279, May.
- Robert J. Aumann, 1999. "Interactive epistemology I: Knowledge," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(3), pages 263-300.
- repec:wly:soecon:v:80:4:y:2014:p:918-925 is not listed on IDEAS
- Karen I. Vaughn, 2014. "Buchanan as Subjectivist," Southern Economic Journal, Southern Economic Association, vol. 80(4), pages 918-925, April.
- Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
- Gode, Dhananjay K & Sunder, Shyam, 1993.
"Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality,"
Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 119-137, February.
- 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.
- Pingle, Mark, 1992. "Costly optimization: an experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 17(1), pages 3-30, January.
- John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
- Vernon L. Smith, 1962.
"An Experimental Study of Competitive Market Behavior,"
Journal of Political Economy, University of Chicago Press, vol. 70(2), pages 111-111.
- Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70(3), pages 322-322.
- Rosser, J. Barkley, 2022. "Complexity and aesthetics: How arts, sciences, and economics coevolve," Chaos, Solitons & Fractals, Elsevier, vol. 157(C).
- Michael Grubb, 2015.
"Failing to Choose the Best Price: Theory, Evidence, and Policy,"
Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(3), pages 303-340, November.
- Michael D. Grubb, 2015. "Failing to Choose the Best Price: Theory, Evidence, and Policy," Boston College Working Papers in Economics 878, Boston College Department of Economics.
- Vernon L. Smith, 2003.
"Constructivist and Ecological Rationality in Economics,"
American Economic Review, American Economic Association, vol. 93(3), pages 465-508, June.
- Smith, Vernon L., 2002. "Constructivist and Ecological Rationality in Economics," Nobel Prize in Economics documents 2002-7, Nobel Prize Committee.
- Wagner, Richard E., 2012. "A macro economy as an ecology of plans," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 433-444.
- Abigail N. Devereaux & Richard E. Wagner, 2020. "Contrasting Visions for Macroeconomic Theory: DSGE and OEE," The American Economist, Sage Publications, vol. 65(1), pages 28-50, March.
- Richard E. Wagner, 2022. "Rethinking Public Choice," Books, Edward Elgar Publishing, number 21160.
- repec:plo:pone00:0179277 is not listed on IDEAS
- K. Vela Velupillai, 2005.
"The unreasonable ineffectiveness of mathematics in economics,"
Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(6), pages 849-872, November.
- K. Vela Velupillai, 2004. "The Unreasonable Ineffectiveness of Mathematics in Economics," Working Papers 0080, National University of Ireland Galway, Department of Economics, revised 2004.
- Abigail Devereaux & Roger Koppl & Stuart Kauffman, 2024. "Creative evolution in economics," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 489-514, April.
- Richard H. Day, 1994. "Complex Economic Dynamics - Vol. 1: An Introduction to Dynamical Systems and Market Mechanisms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041413, December.
- Tversky, Amos & Thaler, Richard H, 1990. "Anomalies: Preference Reversals," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 201-211, Spring.
- repec:trn:utwpas:1211 is not listed on IDEAS
- Boettke Peter J. & Candela Rosolino A., 2014. "Alchian, Buchanan, and Coase: A Neglected Branch of Chicago Price Theory," Man and the Economy, De Gruyter, vol. 1(2), pages 189-208, December.
- Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201704300700001022, Iowa State University, Department of Economics.
- Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-368, September.
- Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201703280700001022, Iowa State University, Department of Economics.
- Abigail Devereaux & Roger Koppl, 2024. "The use of knowledge in open-ended systems," Papers 2412.00011, arXiv.org.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- William F. Shughart II & Ravi K. Roy & Ryan Yonk, 2025. "Humanomics: introduction to a special issue," Public Choice, Springer, vol. 202(3), pages 333-339, March.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Abigail Devereaux & Roger Koppl & Stuart Kauffman, 2024. "Creative evolution in economics," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 489-514, April.
- Troy Tassier, 2013. "Handbook of Research on Complexity, by J. Barkley Rosser, Jr. and Edward Elgar," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(1), pages 132-133.
- Antonio Doria, Francisco, 2011. "J.B. Rosser Jr. , Handbook of Research on Complexity, Edward Elgar, Cheltenham, UK--Northampton, MA, USA (2009) 436 + viii pp., index, ISBN 978 1 84542 089 5 (cased)," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 196-204, April.
- Szymon Chudziak, 2025. "Studying economic complexity with agent-based models: advances, challenges and future perspectives," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 20(2), pages 413-449, April.
- Lackner, Teresa & Fierro, Luca E. & Mellacher, Patrick, 2025.
"Opinion dynamics meet agent-based climate economics: An integrated analysis of carbon taxation,"
Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
- Lackner, Teresa & Fierro, Luca Eduardo & Mellacher, Patrick, 2024. "Opinion Dynamics meet Agent-based Climate Economics: An Integrated Analysis of Carbon Taxation," OSF Preprints rdfze, Center for Open Science.
- Teresa Lackner & Luca E. Fierro & Patrick Mellacher, 2024. "Opinion Dynamics meet Agent-based Climate Economics: An Integrated Analysis of Carbon Taxation," Graz Economics Papers 2024-07, University of Graz, Department of Economics.
- Teresa Lackner & Luca E. Fierro & Patrick Mellacher, 2024. "Opinion Dynamics meet Agent-based Climate Economics: An Integrated Analysis of Carbon Taxation," LEM Papers Series 2024/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Mellacher, Patrick, 2020.
"COVID-Town: An Integrated Economic-Epidemiological Agent-Based Model,"
MPRA Paper
103661, University Library of Munich, Germany.
- Patrick Mellacher, 2020. "COVID-Town: An Integrated Economic-Epidemiological Agent-Based Model," Papers 2011.06289, arXiv.org.
- Abigail Devereaux & Roger Koppl, 2024. "The use of knowledge in open-ended systems," Papers 2412.00011, arXiv.org.
- Claudius Gräbner & Wolfram Elsner & Alexander Lascaux, 2018.
"To Trust or to Control: Informal Value Transfer Systems and Computational Analysis in Institutional Economics,"
Journal of Economic Issues, Taylor & Francis Journals, vol. 52(2), pages 559-569, April.
- Claudius Graebner & Wolfram Elsner & Alexander Lascaux, 2017. "To trust or to control: Informal value transfer systems and computational analysis in institutional economics," ICAE Working Papers 74, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
- D'Orazio, Paola, 2019. "Income inequality, consumer debt, and prudential regulation: An agent-based approach to study the emergence of crises and financial instability," Economic Modelling, Elsevier, vol. 82(C), pages 308-331.
- An, Li & Grimm, Volker & Sullivan, Abigail & Turner II, B.L. & Malleson, Nicolas & Heppenstall, Alison & Vincenot, Christian & Robinson, Derek & Ye, Xinyue & Liu, Jianguo & Lindkvist, Emilie & Tang, W, 2021. "Challenges, tasks, and opportunities in modeling agent-based complex systems," Ecological Modelling, Elsevier, vol. 457(C).
- Innocenti, Alessandro, 2010. "How a psychologist informed economics: The case of Sidney Siegel," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 421-434, June.
- Jan Schulz & Daniel M. Mayerhoffer, 2021. "Equal chances, unequal outcomes? Network-based evolutionary learning and the industrial dynamics of superstar firms," Journal of Business Economics, Springer, vol. 91(9), pages 1357-1385, November.
- Bewaji, Oluwasegun, 2024. "A computational model of bilateral credit limits in payment systems and other financial market infrastructures," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(1).
- Patrick Mellacher, 2021.
"Growth, Inequality and Declining Business Dynamism in a Unified Schumpeter Mark I + II Model,"
Papers
2111.09407, arXiv.org, revised Nov 2023.
- Patrick Mellacher, 2023. "Growth, Inequality and Declining Business Dynamism in a Unified Schumpeter Mark I + II Model," Graz Economics Papers 2023-04, University of Graz, Department of Economics.
- Koen de Koning & Tatiana Filatova & Okmyung Bin, 2019. "Capitalization of Flood Insurance and Risk Perceptions in Housing Prices: An Empirical Agent‐Based Model Approach," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1159-1179, April.
- Ardalan, Kavous, 2018. "Neurofinance versus the efficient markets hypothesis," Global Finance Journal, Elsevier, vol. 35(C), pages 170-176.
- Eric Innocenti & Corinne Idda & Dominique Prunetti & Pierre-Régis Gonsolin, 2022. "Agent-based modelling of a small-scale fishery in Corsica," Post-Print hal-03886619, HAL.
- Timothy P. Roth, 2014. "Economists and the State," Books, Edward Elgar Publishing, number 15078.
- Charles F. Manski, 2017. "Optimize, satisfice, or choose without deliberation? A simple minimax-regret assessment," Theory and Decision, Springer, vol. 83(2), pages 155-173, August.
- Itzhak Rasooly, 2022. "Competitive equilibrium and the double auction," Economics Series Working Papers 974, University of Oxford, Department of Economics.
More about this item
Keywords
Price theory; Decision-making costs; Heuristics; Cultural influence; Rationality;All these keywords.
JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:202:y:2025:i:3:d:10.1007_s11127-025-01265-6. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.