Research has established that economic decisions often deviate from game theoretic predictions. We explore the process of causal thinking as a possible explanation for such deviations. Specifically, we suggest that causal information affects economic decisions based on the principles advocated...

We analyze one-shot Prisoner’s Dilemma decisions made by participants of the high-stakes TV game show The Manipulation, and document the influence of social life factors on economic decisions, alongside the participants’ rational considerations. In particular, we employ a social psychology...

The presented research tests cumulative prospect theory (CPT, [Kahneman, D., Tversky, A., 1979. Prospect theory: An analysis of decision under risk. Econometrica 47, 263-291; Tversky, A., Kahneman, D., 1981. The framing of decisions and the psychology of choice. Science 211, 453-480]) in the...

Standard economic theory presumes invariant preferences. We refute this presumption on chronobiological grounds, documenting seasonal affective impact on investors' demand for Initial Public Offerings (IPOs). We find that seasonal mood substantially influences short-, mid-, and long-run IPO...