Despite decades of research on heuristics and biases, empirical evidence on the effect of large incentives – as present in relevant economic decisions – on cognitive biases is scant. This paper tests the effect of incentives on four widely documented biases: base rate neglect, anchoring,...

Does relaxing strict school discipline improve student achievement, or lead to classroom disorder? We study a 2012 reform in New York City public middle schools that eliminated suspensions for non-violent, disorderly behavior. Math scores of students in more-affected schools rose by 0.05...