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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
Welfare Economics. A key theme of Cognitive Economics is finite cognition (often misleadingly called "bounded rationality …
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
attention can distort economic choice by distracting decision makers from their immediate goals or from certain choice …
Persistent link: https://www.econbiz.de/10012629494
Genetic factors play a major role in the development of Alzheimer's disease and related dementias (ADRD). Observable genetic factors could impact household planning and medical care if they contain actionable information, meaning that they i) are associated with significant harms, ii) reflect...
Persistent link: https://www.econbiz.de/10014512035
Business cycle models often abstract from persistent household heterogeneity, despite its potentially significant implications for macroeconomic fluctuations and policy. We show empirically that the likelihood of being persistently financially constrained decreases with cognitive skills and...
Persistent link: https://www.econbiz.de/10014528345
We examine how 17 behavioral biases relate to each other, to other decision inputs, and to decision outputs. Most … personality traits--with some expected exceptions. Accounting for this correlation structure, we reduce our 29 decision inputs to … this taxonomy for various approaches to modeling influences of behavioral biases on decision making …
Persistent link: https://www.econbiz.de/10012482357
This paper presents some of the first large-scale survey evidence linking optimism to major economic choices. We create a novel measure of optimism using the Survey of Consumer Finance by comparing a person's self-reported life expectancy to that implied by statistical tables. Optimists are more...
Persistent link: https://www.econbiz.de/10012467322
revisiting prior choices, can lead to decision errors. This paper explores the enrollment decisions of Medicare beneficiaries in …
Persistent link: https://www.econbiz.de/10012458484
This paper considers two problems that arise in determining the role of ability in explaining the level of and change in the rate of return to schooling. (1) Ability and schooling are so strongly dependent that it is not possible, over a wide range of variation in schooling and ability, to...
Persistent link: https://www.econbiz.de/10012470923