We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...

An intuitive and popular belief is that we steadily improve our decision-making over time by learning from experience. This is a myth because learning from experience is quite complex and difficult due to many reasons. One reason is that we routinely engage in mental time travel by anticipating...

I show theoretically that applying the model of Köszegi and Rabin (2006) to a simple purchasing decision where consumers are ex-ante uncertain about the price realisation, gives - when changing the underlying distribution of expected prices - rise to counterintuitive predictions in contrast...

We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...

In this article, we reflect critically on how moral actions are categorised in some recent studies on moral spillovers. Based on classic concepts from moral philosophy, we present a framework to categorise moral actions. We argue that with such finer gradation of the moral values, associated...

In this article, we reflect critically on how moral actions are categorised in some recent studies on moral spillovers. Based on classic concepts from moral philosophy, we present a framework to categorise moral actions. We argue that with a finer classification of the moral values, associated...

Optimistic beliefs affect important areas of economic decision making, yet direct knowledge on how belief biases operate remains limited. To better understand these biases I introduce a theoretical framework that trades off anticipatory benefits against two potential costs of forming biased...

Does students' hand tremble after marking three consecutive identical answers in a multiple choice test? We design an experiment to study if the likelihood to change incorrectly to a different answer than the last one depends on the number of identical previous answers. We do not find a clear...