We experimentally investigate the memory recall bias of overconfident (underconfident) individuals after receiving feedback on their overconfidence (underconfidence). Our study differs from the literature by identifying the recall pattern conditional on subjects' overconfidence/underconfidence....

We propose a theory of memory recall bias that is different from Bénabou and Tirole (2002). In our framework, remembering a negative event can be painful and lowers current and future memory utility, while it helps the decision-maker to make better decisions in the future. The decision-maker...

This paper experimentally tests the Fox-Tversky (1995) source preference hypothesis as axiomatized in Chew and Sagi (2008) where people may have preference between equally distributed risks depending on the underlying sources of uncertainty. We study two forms of source preference. One is based...