Games and decisions with bounded rationality: theory and economic implications. This project will develop concepts and tools for decision making in complex environments, where it is impossible to fully characterise the possible outcomes and factors that may affect them. A central goal will be to integrate heuristic rules such as the precautionary principle with the more formal approach adopted in benefit-cost analysis.
Risk and Australian public policy. This project will develop fundamentally new approaches to the theory of risk and uncertainty and their role in the design and management of complex projects and policy initiatives. The results will be applied to the central economic policy choices facing Australia; those connected with globalisation and microeconomic reform. This project will show how the latest advances in economic theory can help to illuminate the major issues in the Australian public debate, ....Risk and Australian public policy. This project will develop fundamentally new approaches to the theory of risk and uncertainty and their role in the design and management of complex projects and policy initiatives. The results will be applied to the central economic policy choices facing Australia; those connected with globalisation and microeconomic reform. This project will show how the latest advances in economic theory can help to illuminate the major issues in the Australian public debate, from the role of government and the market to the assessment of standards of living. The project will also help to bridge the gap between economics and other social sciences.Read moreRead less
Information and market price manipulation in trade. As we can see from the financial crisis, speculative trading in financial markets can have real world effects. Inside traders can exploit their information for more profits. At this stage, we do not fully understand the role of diverse information in the financial system and we need better ways to model price manipulation and information in a dynamic setting. This proposal seeks to supply a reference framework for analyzing price manipulatio ....Information and market price manipulation in trade. As we can see from the financial crisis, speculative trading in financial markets can have real world effects. Inside traders can exploit their information for more profits. At this stage, we do not fully understand the role of diverse information in the financial system and we need better ways to model price manipulation and information in a dynamic setting. This proposal seeks to supply a reference framework for analyzing price manipulation. Recently, there has been an increasing interest in the informed trader's dynamic strategy. By strengthening this research area, this project will give new momentum to Australian economic theory.Read moreRead less
Memory, Induction, and Strategic Behaviour in Economic and Social Situations. This project will provide economists, game theorists and other social scientists with a theoretical framework to model players with limited memories, and to model the process by which they develop their subjective views. By giving a formal treatment of the problem of induction, it will help us to understand how people might come to have different views on the world. By capturing new aspects of bounded memory, it will e ....Memory, Induction, and Strategic Behaviour in Economic and Social Situations. This project will provide economists, game theorists and other social scientists with a theoretical framework to model players with limited memories, and to model the process by which they develop their subjective views. By giving a formal treatment of the problem of induction, it will help us to understand how people might come to have different views on the world. By capturing new aspects of bounded memory, it will extend our understanding of agents with bounded rationality. The emergence of sophisticated strategic concepts and behavioural implications of these subjective views in society can also be described and discussed in this framework. Read moreRead less
Australian Laureate Fellowships - Grant ID: FL120100034
Funder
Australian Research Council
Funding Amount
$2,002,560.00
Summary
Black swans and unknown unknowns: financial markets and their interaction with the macroeconomy in the presence of unanticipated contingencies. Unforeseen contingencies, also called 'black swans' or 'unknown unknowns' pose serious difficulties for decisionmakers. This project will examine how financial regulation can be improved to reduce the vulnerability of the financial system and the macroeconomy to unforeseen shocks.
Using Heart Rate Variability measurements to identify the effects of stress on decision making. Rationality and the willingness to cooperate is an important aspect of human decision making. Research shows that certain decisions not only cause stress but are also affected by it. Using modern mobile heart rate monitors, we are able to measure causes and consequences of stress in a controlled and natural environment. This research will help to provide better workplace environments by helping to des ....Using Heart Rate Variability measurements to identify the effects of stress on decision making. Rationality and the willingness to cooperate is an important aspect of human decision making. Research shows that certain decisions not only cause stress but are also affected by it. Using modern mobile heart rate monitors, we are able to measure causes and consequences of stress in a controlled and natural environment. This research will help to provide better workplace environments by helping to design better organisations, decreasing the probability of workplace accidents, and advising employees how to better use their talents. This research also helps put Australia on the forefront of modern economic research that aims to open the ultimate "black box" of human decision making.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE120102640
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Behavioural foundations of economic design for an uncertain world. The aim of this project is to incorporate behavioural foundations into mechanism design to improve our understanding of economic institutions in incomplete information environments. To accomplish this goal, it considers a framework where agents have reference-dependent preferences and explores implications of this assumption for economic design.
Inductive game theory: experiential knowledge, interactions, and limited inferences in social contexts. This research project stresses the importance of limited experiences and limited inferential abilities for explaining differences observed across individuals and groups in society. The project will use inductive game theory to attack problems and conflicts between individuals and groups based on such limitations.
'Fixed points': extending and deepening our understanding of mathematical and computational aspects of game theory. This work will extend and deepen our understanding of mathematical and computational aspects of game theory. It will produce computer code embodying new methods of solving systems of nonlinear equations, which is useful in many areas of applied research in economics, in other disciplines such as chemistry, and potentially in the analysis of business operations. The project will a ....'Fixed points': extending and deepening our understanding of mathematical and computational aspects of game theory. This work will extend and deepen our understanding of mathematical and computational aspects of game theory. It will produce computer code embodying new methods of solving systems of nonlinear equations, which is useful in many areas of applied research in economics, in other disciplines such as chemistry, and potentially in the analysis of business operations. The project will also deepen our understanding of the underlying mathematics of such systems, and of other mathematical foundations of economic research. One application will be a new measure of the relative power resulting from voting rules. Such measures assist the design of democratic institutions by allowing the designer to assess the fairness of the outcomes they produce.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE180101452
Funder
Australian Research Council
Funding Amount
$357,996.00
Summary
Strategic interaction with limited memory: A theoretical approach. This project aims to propose a theoretical framework that would allow economists to explore and uncover the behavioural and welfare effects of memory constraints. By integrating cognitive constraints into existing economic theory, this project is expected to enhance economists’ future capacity to inform a diverse range of economic policies. Incorporating cognitive constraints into economic research can reduce unintended conseque ....Strategic interaction with limited memory: A theoretical approach. This project aims to propose a theoretical framework that would allow economists to explore and uncover the behavioural and welfare effects of memory constraints. By integrating cognitive constraints into existing economic theory, this project is expected to enhance economists’ future capacity to inform a diverse range of economic policies. Incorporating cognitive constraints into economic research can reduce unintended consequences of policy recommendations and is especially important in in complex markets such as health or household finance.Read moreRead less