Understanding the role of emotion in forming preferences is critical in helping firms choose effective marketing strategies and consumers make appropriate consumption decisions. In five experiments, participants made a set of binary product choices under conditions designed to induce different...

This paper aims to highlight how clauses, which are traditionally considered to be inefficient, may actually be desired by consumers. This anomaly originates from the fact that each individual builds a mental budget by dividing the money available among the needs they intend to satisfy....

We study a model of Bayesian persuasion in which Receiver has limited information-processing capacity, or attention, and must exert costly effort to process Sender's signals. Receiver is rationally inattentive (Sims (2003)): attention costs are proportional to the mutual information (expected...

We test the main predictions of the rational addiction model, reconceptualized as rational habit formation, in the context of handwashing. To track habit formation, we design soap dispensers with timed sensors. We test for rational habit formation by informing some households about a future...

I derive a social planner's optimal information design in an environment with quasi-hyperbolic discounting consumers without commitment. Consumption induces instantaneous utility, but unknown delayed cost. Consumers may or may not acquire additional costless information on the cost parameter....