The paper focuses on an employee’s perception of his or her own labour market outcome. It proposes that the basic earnings function, by adopting an approach that ignores perception effects, is likely to result in biased results that will fail to understand the complexities of the wage...

Cognitive dissonance theory predicts that the act of voting makes people more positive toward the party or candidate they have voted for. Following Mullainathan and Washington (Am. Econ. J. Appl. Econ. 1:86–111, <CitationRef CitationID="CR30">2009</CitationRef>), I test this prediction by using exogenous variation in turnout provided by...</citationref>

We introduce public signals and cognitive dissonance into the standard Allingham-Sandmo- Yitzhaki (ASY) model of tax evasion. It turns out that the pres- ence of cognitive dissonance attenuates tax evasion as individuals dislike allowing their true bevhaviour to diverge from their public...

For exposed and vulnerable communities, the perception of natural risk is an essential link in the analysis of man–environment coping relationship and also an important parameter in the quantification of complex vulnerability as a central predictive variable in the risk equation. The topic of...

This present research attempts to highlight some causes that have led to the current crisis, the role and importance of signals in anticipating events that characterize a situation of crisis, the need for interpreting these signals not only based on the economic theory but also on...

This paper analyzes the impact of economic prospects on one’s time preference. Research in psychol- ogy has shown how individuals modify their preferences in order to reduce their cognitive dissonance, which is the uncomfortable tension felt when simultaneously holding conflicting thoughts. It...

We explore the role of cognitive dissonance in dictator and public goods games. Specifically, we motivate cognitive dissonance between one's perception of “fair treatment” and self-interested behaviour by having participants answer a question about fairness. Utilizing two manipulations...

This paper presents a model and an experiment, both suggesting that wishful thinking is a pervasive phenomenon that aect decisions large and small. Agents in the model start out with state-dependent payos, and behave as if high-payo states are more likely. Subsequent choices maximize...

Using psychological terms such as cognitive dissonance and confirmation bias, this study reveals how individual consumers inadequately process (food safety) information, pay limited attention to signals, and make purchase decisions that are bias towards their initial choices. While it is...

We treat the Canterbury (Christchurch) earthquake sequence as a potential source of new risk information to home buyers in New Zealand. We compare pre- and post-earthquake sales of properties in two other urban areas of the country (one with high and one with low seismicity) to estimate how the...