Psychological evidence predicts that sunny weather is associated with an upbeat mood. Although standard economic theory presumes invariant preferences and full rationality, the finance literature has documented a strong relationship between morning sunshine in the city of a country's stock...

The Braess' Paradox (Braess (1968)) exhibits, counterintuitively, that adding capacity to a noncooperative network may reduce its overall performance. Using an analogy between networks and production economies, we demonstrate that an improvement in the production technology of an intermediate...

Standard economic theory presumes invariant preferences. We refute this presumption on chronobiological grounds, documenting seasonal affective impact on investors' demand for Initial Public Offerings (IPOs). We find that seasonal mood substantially influences short-, mid-, and long-run IPO...

We examine whether bond ratings contain pricing relevant information, that is unavailable to investors from other sources, by focusing on investor reaction to rating changes that were not accompanied by any economic fundamental event - Moody's refinement of its rating system. This refinement was...

We explore the influence of priming on financial decisions by reinforcing subjects' risk-seeking behavior under uncertainty and comparing it to behavior in control groups. We focused on professionals: commercial banks' investment advisors and accountants in CPA firms. Results indicate that...

We present an empirical model of firms' strategic behavior in the presence of switching costs. Consumers' transition probabilities embedded in firms strategic interaction are used in a two-stage game to derive structural estimable equations of a first order condition, market-share (demand), and...

This article introduces the special issue Empirical Behavioral Finance in the Journal of Economic Behavior and Organization (Volume 107, Part B, November 2014). It includes the results of a survey among reviewers and authors into the relative importance of different types of research within the...

We address the role of impression on decisions to employ corporate job candidates. Specifically, we focus on the effect of phrasing the job candidate’s CV in the third person (passive voice), as opposed to the first person, on its readers’ impression and decisions regarding the candidate,...

We invoke the famous Louis XIV quote “L'État, c'est moi,” applying it to the corporate world, and introduce the novel idea that a self-serving bias, which we define as “I Am The Firm,” is infused within the culture of certain companies. We hypothesize that the owners of eponymous firms...