The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

Economists tend to assume that agents maximize their expected utility. However, many different experiments have questioned expected utility maximization by showing that human behavior can be characterized as random. This paper proposes Thompson Sampling as a theory of human behavior across very...

Despite much criticism, economic analyses often use Bayesian belief formation. Yet, widely applicable, empirically founded, non-Bayesian approaches are scarce. I investigate whether Thompson Sampling is a suitable unifying model of belief formation by testing its predictions in a pre-registered...