Despite decades of research on heuristics and biases, empirical evidence on the effect of large incentives - as present … in relevant economic decisions - on cognitive biases is scant. This paper tests the effect of incentives on four widely … documented biases: base rate neglect, anchoring, failure of contingent thinking, and intuitive reasoning in the Cognitive …

We conduct a laboratory experiment to shed light on the cognitive limitations that may affect the way decision makers …

In the contingent valuation literature, both anchoring and acquiescence biases pose problems when using an iterative … bidding game to infer willingness to pay. Anchoring bias occurs when the willingness to pay estimate is sensitive to the … initially presented starting value. Acquiescence bias occurs when survey respondents exhibit a tendency to answer 'yes' to …

information is symmetrically distributed and the scoring bias is set to offset the initial asymmetry between players …

Welfare Economics. A key theme of Cognitive Economics is finite cognition (often misleadingly called "bounded rationality …