David Romer
David Romer
David Romeris an American economist, the Herman Royer Professor of Political Economy at the University of California, Berkeley, the author of a standard textbook in graduate macroeconomics as well as many influential economic papers, particularly in the area of New Keynesian economics. He is also the husband and close collaborator of Council of Economic Advisers former Chairwoman Christina Romer...
accurate agents assumption coaches decisions despite extremely fails functions imitation intensely lead learning market maximize objective possibilities reasonably services simple standard unusually
The decisions are comparatively simple, the possibilities for learning and imitation are unusually large, the compensation for coaches who make the decisions is extremely high, and the market for their services is intensely competitive. Despite these forces, the standard assumption that agents maximize simple objective functions fails to lead to reasonably accurate descriptions of behavior.
evidence force forces paper previous provides pushing results strength suggest thus toward work
Thus previous work provides little evidence about the strength of force pushing decision-makers toward conservatism. The results of this paper suggest that the forces may be shockingly strong.
cost faces large losing maximize team thus won
At the end of the game, one team will have won and the other will have lost. Thus even a decision-maker who faces a large cost of losing should maximize the probability of winning.