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We show what the rational inattention model predicts about the treatment effect of information provided during a randomized control trial. This is a non-trivial question because the model implies optimal attention choice before, during, and after an information treatment. The predictions of the...
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Overconfidence seems to be an essential aspect of human nature, and one way to study overconfidence is to consider students' forecasts of their exam grades. Part of a student's grade expectation is based on the student's previous academic achievements; what remains can be interpreted as...
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We design a novel experiment to identify aversion to pure (univariate) health inequality separately from aversion to … income-related and income-caused health inequality. Participants allocate resources to determine health of individuals … preferences while accounting for noise. The median person has strong aversion to pure health inequality, challenging the health …
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