Jonathan W. Leland

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Rubinstein's (1988) procedure for choosing between risky prospects, based, in part, upon similarities between prizes and probabilities across lotteries, is modified and extended to apply to a more general class of binary choices. This modified procedure is shown to imply behaviors following from Loomes and Sugden's (1982) Regret Theory, although under more(More)
The Internet is expected to have a positive impact on economic growth, and its adoption rate will determine the extent of this impact. In this paper, we examine how differences in willingness to trust influence Internet adoption rates across countries. We show that trust has a statistically significant influence on levels of Internet penetration across(More)
The concept of strategic surprise has been used by writers on military strategy to explore the successful amplification of resources during battle. This paper applies the same concept to subcontracting relationships, and develops a cognitive framework to explain the phenomenon of strategic surprises, using buyer-supplier relations as an example. We first(More)
Jonathan W. Leland University of Trento and the National Science Foundation1 September 14, 2006 Abstract Rubinstein (1988, 2003) and Leland (1994, 1998, 2001, 2002) have shown that choices based on similarity judgments will account for the vast majority of observed violations of expected and discounted utility. In this paper, I show that such judgments also(More)
Six experiments compared four classes of decision-making models that make different predictions for tests of three diagnostic behavioral properties. These properties are transitivity of preference, recycling of intransitivity, and restricted branch independence. Two experiments tested decisions based on advice from friends, a situation in which majority(More)
In his exposition of subjective expected utility theory, Savage (1954) proposed that the Allais paradox could be reduced if it were recast into a format which made the appeal of the independence axiom of expected utility theory more transparent. Recent studies consistently find support for this prediction. We consider a salience-based choice model which(More)
The paper presents an alternative interpretation of the experimental data published by Kahneman and Tversky in their 1992 study "Advances in Prospect Theory”, which describes the Cumulative version of their Prospect Theory from 1979. It was assumed that, apart from the operations made during the initial stage of problem resolution, which Prospect Theory(More)