We present a model of stereotypes in which a decision maker assessing a group recalls only that group?s most representative or distinctive types. Stereotypes highlight differences between groups, and are especially inaccurate (consisting of unlikely, extreme types) when groups are similar....

We present a model of judicial decision making in which the judge overweights the salient facts of the case. The context of the judicial decision, which is comparative by nature, shapes which aspects of the case stand out and draw the judge's attention. By focusing judicial attention on...

We use a newly assembled sample of 1,528 regions from 83 countries to compare the speed of per capita income convergence within and across countries.  Regional growth is shaped by similar factors as national growth, such as geography and human capital.  Regional convergence rate is about 2%...

We present a model of stereotypes in which a decision maker assessing a�group recalls only that group's most representative or distinctive types. Stereotypes highlight differences between groups, and are especially inaccurate (consisting of unlikely, extreme types) when groups are similar....

We present a new model of investors delegating portfolio management to professionals based on trust.  Trust in the manager reduces an investor?s perception of the riskiness of a given investment, and allows managers to charge fees.  Money managers compete for investor funds by setting fees,...

We present a theory of consumer choice that combines elements of limited recall and of allocationof attention distorted by salience. The theory helps clarify and organize a variety of evidence dealingwith consumer reaction to information, including surprises in quality and prices, unshrouding...

Using micro data from Duke University quarterly survey of Chief Financial Officers, we show that corporate investment plans as well as actual investment are well explained by CFOs? expectations of earnings growth. The information in expectations data is not subsumed by traditional variables,...