Handbook of behavioral economics - foundations and applications 2

Front Cover -- Handbook of Behavioral Economics - Foundations and Applications 2 -- Copyright -- Contents -- Contributors -- Introduction to the series -- Preface -- 1 Intertemporal choice -- 1 Introduction -- 2 Present-focused preferences: theoretical commonalities -- 2.1 Present-biased preferences -- 2.2 Unitary-self models with temptation -- 2.3 Multiple-self models with simultaneous selves -- 2.4 Objective risks that reduce future value -- 2.5 Models with psychometric distortions -- 2.6 Models of myopia -- 2.7 Overview of models of present-focused preferences -- 2.8 Models that do not generate present-focused preferences -- 3 Empirical regularities and open puzzles -- 3.1 Preferences over monetary receipt timing -- 3.2 Preferences over consumption timing -- 3.3 Preference reversals -- 3.4 Procrastination -- 3.4.1 Explanations for procrastination -- 3.5 Naiveté -- 3.6 The effect of transactions costs -- 3.7 Lack of liquidity on household balance sheets -- 3.8 Commitment -- 3.9 Paternalistic policy and welfare -- 3.10 Preference for improving sequences -- 4 Puzzles without associated empirical regularities -- 4.1 How soon is now? -- 4.2 The role of temptation -- 4.3 Other mechanisms and complementary psychological conceptions -- 4.3.1 Risk -- 4.3.2 Heuristics -- 4.3.3 Other theories -- 4.4 Stability and domain generality -- 4.5 Malleability and self-management -- 4.6 Retirement saving adequacy -- 5 Conclusion -- References -- 2 Errors in probabilistic reasoning and judgment biases -- 1 Introduction -- 2 Biased beliefs about random sequences -- 2.1 The gambler's fallacy and the Law of Small Numbers -- 2.2 The hot-hand bias -- 2.3 Additional biases in beliefs about random sequences -- 3 Biased beliefs about sampling distributions -- 3.1 Partition dependence -- 3.2 Sample-size neglect and Non-Belief in the Law of Large Numbers