expectations-based reference-dependent preferences can explain Knetsch's (1989) endowment effect. Departing from past work, we …

Households "sort" across neighborhoods according to their wealth and their preferences for public goods, social … characterize preference heterogeneity. The results can be used to develop theoretically consistent predictions for the welfare …

-out costs, procrastination, inattention, and psychological anchoring. We examine the welfare implications of defaults under each … of these theories. We show how the optimal default, the magnitude of the welfare effects, and the degree of normative … ambiguity depend on the behavioral model, the scope of the choice domain deemed welfare-relevant, the use of penalties for …