Overconfidence is one of the most ubiquitous cognitive bias. There is copious evidence of overconfidence being relevant … overconfidence. Cognitive uncertainty represents a decision maker's uncertainty about her action optimality. We present a simple … model of overconfidence based on the concept of cognitive uncertainty. The model relates the concepts theoretically and …

the assumption of the (local) love of risk of the betting audience. …Empirical studies of horse race betting in the U.S., the UK, and Australia have established the so called favorite …

Evidence on insurers' behavior in environments with both risk selection and market power is largely missing. We fill …. This policy increased enrollment into 5-star contracts, but without risk selection worsening. Our findings show that this …