utility of terminal wealth, we prove the existence of an information premium between what is required by the theory, a …

We present a new theory of asset pricing and portfolio choices under asymmetric reasoning, contrast the predictions … with those under asymmetric information, and present experimental evidence in favor of our theory. The Efficient Markets … manipulation of aggregate risk, we separately test the price and choice implications of our theory. Consistent with our theory, we …

formation in economic and perceptual decisions. An alternative theory is that there exists a common mechanism that governs … belief formation in both domains. Here, we test this alternative theory by combining a novel computational modeling technique …