• Journal of Distribution Science
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• v.11 no.5
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• pp.63-76
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• 2013

Purpose - For the past several decades, behavioral economics or behavioral decision theory has undergone rapid development. This study provides a critical review of the development of behavioral economics with a focus on what are deemed to be core theories in the field. Starting from the utility function proposed by Daniel Bernoulli in the 18th century, the development history of utility functions until the emergence of the prospect theory is thoroughly reviewed. Some of the experimental results violating the traditionally assumed utility function and supporting the prospect theory value function are summarized. The most representative principles of rational choice are transitivity, independence from irrelevant alternatives (IIA), and regularity. The development of behavioral economics has been triggered by finding counter-examples to these principles. Some of the choice behaviors discussed in this study as counter-examples to the traditional theories of rational choice are the St. Petersburg paradox; the Allais paradox; gambling behavior; and the various context effects including the similarity effect, attraction effect, and the compromise effect. The Elimination-by-Aspects (EBA) model, which was proposed as an explanation for the similarity effect, is discussed in detail as well. Based on the literature review and further analysis, this study summarizes the relationship between the context effects, prospect theory, and EBA model. Research design, data, and methodology - This study provides an extensive literature review on several important theories in the field of behavioral decision theory and adds some critical comments to the theories and the relationships among them. This study first reviews the development of utility functions. Daniel Bernoulli introduced the concept of utility function to solve the St. Petersburg paradox. In the mid-20th century, Herbert Simon proposed the "satisficing" heuristic and presented a value function with a shape different from traditional utility functions. This study highlights the strengths and weaknesses of several utility functions proposed until the emergence of the prospect theory value function. Results - This study posits that prospect theory and EBA model are the two most important theories in the field of behavioral decision theory. They can explain various choice behaviors that traditional utility maximization analysis has been unable to. The application of these models to various fields is further increasing nowadays. This study explains how prospect theory and the EBA model can be used to explain the context effects. Conclusions - The traditional economic theory relies on a single variable called "utility" in explaining consumer choice. However, this study argues that, in investigating consumer choice, several other variables should also be considered. These are the similarity among alternatives, an alternative's prototypicality within the category, the dominance relationship between alternatives, and the reference point in evaluating alternatives. Due to the development of behavioral economics, we are now closer to a more complete understanding of consumer choice behavior than in the past when we had only a single tool called utility.

• Korean Journal of Logic
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• v.18 no.1
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• pp.83-133
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• 2015

In this paper, I pose a problem for Hitchcock's arguments for two concepts of effects that are intended to explicate double causal effects, and put forth a theory that is intended not just to meet the problem but also to accommodate Hitchcock's theory and Eells' theory both. First, I introduce an example of dual causal effects, and examine the accounts of Otte(1985) and Eells(1987) on how to explicate the dual effects. I show that their accounts of the dual effects help us understand the problem of dual effects and see how different it is for Cartwright(1979, 1989, 1995), Eells(1991, 1995), and Hitchcock(2001a) to meet the problem. Second, I introduce two concepts of effects on Hitchcock(2001a), that is, net effect and component effect that are allegedly analogous to two effects of structural equation model. Third, I reveal the significance of homogeneous subpopulation and causal interaction regarding the problem of dual effects while examining Cartwright's theory and Elles' theory. Fourth, I critically examine the two concepts of effects on Hitchcock and argue against Hitchcock's criticism of Eells' theory. Fifth, I take a moderator variable of structural equation model and a moderator effect into the probabilistic theory of causality, and formally generalize causal interaction due to the dual effects in terms of disjunctive relation and counterfactual conditionals. I expect my account of disjunctive relation and counterfactual conditionals to contribute not just to several problems the received theories of causal modelling confront but also to the structural equation models many people exploit as a promising statistical methodology.

• Journal of Elementary Mathematics Education in Korea
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• v.18 no.1
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• pp.105-122
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• 2014

In this paper, fraction division algorithms in Korean elementary mathematics textbooks are analyzed as a part of the groundwork to improve teaching methods for fraction division algorithms. There are seemingly six fraction division algorithms in ${\ll}Math\;5-2{\gg}$, ${\ll}Math\;6-1{\gg}$ textbooks according to the 2006 curriculum. Four of them are standard algorithms which show the multiplication by the reciprocal of the divisors modally. Two non-standard algorithms are independent algorithms, and they have weakness in that the integration to the algorithms 8 is not easy. There is a need to reconsider the introduction of the algorithm 4 in that it is difficult to think algorithm 4 is more efficient than algorithm 3. Because (natural number)${\div}$(natural number)=(natural number)${\times}$(the reciprocal of a natural number) is dealt with in algorithm 2, it can be considered to change algorithm 7 to algorithm 2 alike. In textbooks, by converting fraction division expressions into fraction multiplication expressions through indirect methods, the principles of calculation which guarantee the algorithms are explained. Method of using the transitivity, method of using the models such as number bars or rectangles, method of using the equivalence are those. Direct conversion from fraction division expression to fraction multiplication expression by handling the expression is possible, too, but this is beyond the scope of the curriculum. In textbook, when dealing with (natural number)${\div}$(proper fraction) and converting natural numbers to improper fractions, converting natural numbers to proper fractions is used, but it has been never treated officially.