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

Psychological evidence indicates that decision quality declines after an extensive session of decision-making, a … phenomenon known as decision fatigue. We study whether decision fatigue affects analysts' judgments. Analysts cover multiple … the number of forecasts the analyst has already issued increases. Also consistent with decision fatigue, we find that the …

This paper conducts tests of the rationality of both inflation and short-term interest rate forecasts in the bond … market. These tests are developed with the theory of efficient markets and make use of security price data to infer …

the cost of generating the information used to make a decision through a dynamic evidence accumulation process. We … alternative rational inattention theory better conform with evidence from perceptual discrimination experiments …

In this paper we study "investment tournaments," a class of decision problems that involve gradual allocation of … investment among several alternatives whose values are subject to exogenous shocks. The decision-maker's payoff is determined by … broad range of cases it is optimal for the decision-maker in each time period to allocate all resources to the most …