Many real life choices concern consumption in future periods. Previous studies apparently demonstrate that people systematically mispredict future tastes in such situations. This evidence, however, is also consistent with the idea that people understand, but do not approve of their future...

Previous studies apparently demonstrate that people systematically mispredict future tastes. This evidence, however, is also consistent with the idea that people understand, but do not approve of their future tastes. To disentangle both approaches, we conducted a framed field experiment with...

Weizsäcker (2010) estimates the payoff of actions to test rational expectations and to measure the success of social learning in information cascade experiments. He concludes that participants perform poorly when learning from others and that rational expectations are violated. We show that his...

We investigate whether experimental participants follow their private information and contradict herds in situations where it is empirically optimal to do so. We consider two sequences of players, an observed and an unobserved sequence. Observed players sequentially predict which of two options...

Weizsäcker (2010) estimates the payoff of actions to test rational expectations and to measure the success of social learning in information cascade experiments. He concludes that participants perform poorly when learning from others and that rational expectations are violated. We show that his...

We investigate whether experimental participants follow their private information and contradict herds in situations where it is empirically optimal to do so. We consider two sequences of players, an observed and an unobserved sequence. Observed players sequentially predict which of two options...

Many real life choices concern consumption in future periods. Previous studies apparently demonstrate that people systematically mispredict future tastes in such situations. This evidence, however, is also consistent with the idea that people understand, but do not approve of their future...