This paper develops and tests a model of how recall of information from past decisions affects subsequent related decisions. A boundedly rational individual has to determine her willingness to pay for a good that she previously considered purchasing at a given price, or provide valuations for a...

We show inconsistencies in expected utility theory in a setting characterized by the possibility of under-commitment and over-commitment of resources. The setting involves the purchase of tokens, where each token buys a number of coverage minutes, and a probabilistic penalty for purchasing fewer...

This paper develops and tests a model of sequential decision making where a first stage of ranking a set of alternatives is followed by a second stage of determining the value of these same alternatives. The model assumes a boundedly rational Bayesian decision maker who is uncertain about...