A little learning is a dangerous thing: an experimental demonstration of ignorance-driven inference

Studies of ignorance-driven decision making have been employed to analyse when ignorance should prove advantageous on theoretical grounds or else they have been employed to examine whether human behaviour is consistent with an ignorance-driven inference strategy (e. g., the recognition heuristic). In the current study we examine whether-under conditions where such inferences might be expected-the advantages that theoretical analyses predict are evident in human performance data. A single experiment shows that, when asked to make relative wealth judgements, participants reliably use recognition as a basis for their judgements. Their wealth judgements under these conditions are reliably more accurate when some of the target names are unknown than when participants recognize all of the names (a "less-is-more effect"). These results are consistent across a number of variations: the number of options given to participants and the nature of the wealth judgement. A basic model of recognition-based inference predicts these effects.

The unsung heroes

This paper explores the roles played by local collectors, often little-known or rarely remembered, in the compilation of Britain’s Earlier (Lower and early Middle) Palaeolithic record, with reference to the work of C.E. (Charles) Bean at the Lower Palaeolithic site of Broom, and the activities of George Smith and Llewellyn and Mabel Treacher in the Middle Thames Valley. Their collecting practices, publication records, and archaeological knowledge and insights are reviewed, and their impacts assessed with reference to the activities of other contemporary collectors, and the regional archaeological records of the south-west and the Middle Thames. Their archives demonstrate that while the key sites and artefact assemblages sampled by Bean, Smith and the Treachers would not otherwise have been unknown, their work left important legacies in terms of rich artefact assemblages, site archives (Bean), and the long-term monitoring of key sites and fluvial terraces.

Capturing UK real estate volitility

Volatility, or the variability of the underlying asset, is one of the key fundamental components of property derivative pricing and in the application of real option models in development analysis. There has been relatively little work on volatility in real terms of its application to property derivatives and the real options analysis. Most research on volatility stems from investment performance (Nathakumaran & Newell (1995), Brown & Matysiak 2000, Booth & Matysiak 2001). Historic standard deviation is often used as a proxy for volatility and there has been a reliance on indices, which are subject to valuation smoothing effects. Transaction prices are considered to be more volatile than the traditional standard deviations of appraisal based indices. This could lead, arguably, to inefficiencies and mis-pricing, particularly if it is also accepted that changes evolve randomly over time and where future volatility and not an ex-post measure is the key (Sing 1998). If history does not repeat, or provides an unreliable measure, then estimating model based (implied) volatility is an alternative approach (Patel & Sing 2000). This paper is the first of two that employ alternative approaches to calculating and capturing volatility in UK real estate for the purposes of applying the measure to derivative pricing and real option models. It draws on a uniquely constructed IPD/Gerald Eve transactions database, containing over 21,000 properties over the period 1983-2005. In this first paper the magnitude of historic amplification associated with asset returns by sector and geographic spread is looked at. In the subsequent paper the focus will be upon model based (implied) volatility.

'Thou glorious kingdome, thou chiefe of empires': Persia in seventeenth-century travel literature

Bringing together a range of little-considered materials, this article assesses the portrayal of Persia in seventeenth-century travel literature and drama. In particular it argues that such texts use their awareness of Islamic sectarian division to portray Persia as a good potential trading partner in preference to the Ottoman Empire. A close reading of John Day, William Rowley and George Wilkins’ The Travailes of the Three English Brothers (1607) demonstrates how the play develops a fantasy model of how relations between Persia and England might function. The potential unity between England and Persia, imagined in terms of both religion and trade, demonstrates how Persia figured as a model ‘other England’ in early modern literature.