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Auction theory is a branch of applied economics that deals with how bidders act in auctions and researches how the features of auctions incentivise predictable outcomes. Auction theory is a tool used to inform the design of real-world auctions.
Psychological contract formation is a process whereby the employer and the employee or prospective employee develop and refine their mental maps of one another. According to the outline of phases of psychological contract formation, the contracting process begins before the employment itself and develops throughout the course of employment.
These contributors may publish in a variety of journals, including journals for general psychology, like American Psychologist. There are several journals dedicated specifically to theoretical psychology, like Theory & Psychology and Journal of Theoretical and Philosophical Psychology. Many other organizations are beginning to recognize ...
In psychology and behavioral economics, the endowment effect, also known as divestiture aversion, is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it.
A normative theory is subjective and based on opinions. Because of this, normative theories cannot be proven true or false. Behavioral game theory attempts to explain decision making using experimental data. [14] The theory allows for rational and irrational decisions because both are examined using real-life experiments in the form of simple ...
The linkage principle is a finding of auction theory. It states that auction houses have an incentive to pre-commit to revealing all available information about each lot, positive or negative. The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a ...
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The terms Vickrey auction and second-price sealed-bid auction are, in this case only, equivalent and used interchangeably. In the case of multiple identical goods, the bidders submit inverse demand curves and pay the opportunity cost. [4] Vickrey auctions are much studied in economic literature but uncommon in practice.