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experiences ("use-dependent brain"). I show that experience effects help understand belief formation and decision-making in a wide … that experience-based learning is broadly applicable to economic decision-making and discuss topics for future research in …
Persistent link: https://www.econbiz.de/10012660014
acquire information suboptimally; there is little correlation between the revealed utility gain from improved decision making …
Persistent link: https://www.econbiz.de/10014372499
Marginal outcome tests compare the expected effects of a decision on individuals who are of different races but at the … same indifference point of the decision-maker. I present a simple formalization of how such tests can detect racial bias …, defined as a deviation from accurate statistical discrimination. Namely, the tests can reject that the decision-maker ranks …
Persistent link: https://www.econbiz.de/10012482718
We revisit La Porta's (1996) finding that returns on stocks with the most optimistic analyst long term earnings growth forecasts are substantially lower than those for stocks with the most pessimistic forecasts. We document that this finding still holds, and present several further facts about...
Persistent link: https://www.econbiz.de/10012453848
We conduct a laboratory experiment to shed light on the cognitive limitations that may affect the way decision makers …
Persistent link: https://www.econbiz.de/10012455702
This paper reviews the recent literature on measuring and boosting cognitive and noncognitive skills. The literature establishes that achievement tests do not adequately capture character skills|personality traits, goals, motivations, and preferences that are valued in the labor market, in...
Persistent link: https://www.econbiz.de/10012457917
when a decision is complex, they implicitly treat different time delays to some degree alike. By experimentally measuring … when the decision environment is more complex. Third, cognitive uncertainty matters for choice architecture: people who are …
Persistent link: https://www.econbiz.de/10012794605
Cognitive Economics is the economics of what is in people's minds. It is a vibrant area of research (much of it within Behavioral Economics, Labor Economics and the Economics of Education) that brings into play novel types of data--especially novel types of survey data. Such data highlight the...
Persistent link: https://www.econbiz.de/10012457832
Financial decisions, be they related to asset building or debt management, require the capacity to do calculations, including some complex ones. But how numerate are individuals, in particular when it comes to calculations related to financial decisions? Studies and surveys implemented in both...
Persistent link: https://www.econbiz.de/10012460837
Persistent link: https://www.econbiz.de/10013480814