Marie Curie Actions: Inspiring Researchers - Imdea

‘Apart from some work on the limitations of existing normativemodels,’ he says, ‘there are other papers in progress that stemfrom a pilot study last year of how far student participants inan experiment made decisions that adhere to the standardrationality axioms that economists impose, and how theirdecisions relate to the attention they appear to give to eachof the alternative decisions they could have made.’ This pilotstudy was conducted in collaboration with Professor StefanTraub of the University of Bremen.In general, however, the fi rst two years of this three-year projecthave been devoted to rather extensive exploration; it is duringthe third and fi nal year that the Chair holder expects to convertthe results of these explorations into working papers to besubmitted for eventual publication.After what amounts to an extended pilot study funded by theMarie Curie Excellence Chair, Professor Hammond is now planningto apply for further funding through the Economic and SocialResearch Council of the UK to further understanding of someof the implications for regulating fi nancial markets. Indeed, thisseems to be one of many cases where the evident modellingfailures really could and should have been better predicted.In the long run, almost everybody could benefi t from morerobustly designed markets based on a model which, unlikemost of those used currently, explicitly treats the possibilitythat borrowers may default.Project acronymAdaptunpredictFull project titleAdapting to the entirely unpredictable, and other aspects ofdynamic behaviour: beyond the von Neumann standard paradigm in games andeconomicsType of grantExcellence ChairBudgetEUR 493 237Duration of project01-04-2007 - 31-03-2010Scientific disciplineEconomicsLead partnerProf. Mark HarrisonDepartment of EconomicsUniversity of WarwickGB-Coventry CV4 7ALTel. +44 24 7652 3030E-mail: mark.harrison@warwick.ac.ukPeter J. Hammond FBAMarie Curie ProfessorDepartment of EconomicsUniversity of WarwickGB-Coventry CV4 7ALTel. +44 24 765 23052E-mail: p.j.hammond@warwick.ac.uk183