Applies the psychological insights of behavioral economics to economic concepts such as moral hazard, deadweight loss, and incidence. Explores how deviations from the standard economic model of decisionmaking--imperfect optimization, bounded self-control, and nonstandard preferences--might...

Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information. The implicit assumption is that comparison friction--the wedge between the availability of comparative...