We test the main predictions of the rational addiction model, reconceptualized as rational habit formation, in the context of handwashing. To track habit formation, we design soap dispensers with timed sensors. We test for rational habit formation by informing some households about a future...

"My goal in writing Microeconomics and Behavior was to produce an intellectually challenging text that would also be accessible and engaging to students. Microeconomics and Behavior develops the core analytical tools with patience and attention to detail. At the same time, it embeds these tools...

Nudge is a semantically multifarious concept that originates in Thaler and Sunstein's (2008) popular eponymous book. In one of its senses, it is a policy for redirecting an agent's choices by only slightly altering his choice conditions, in another sense, it is concerned with bounded rationality...