This paper examines the naïve diversification bias, the tendency of consumers to diversify their investments beyond what is justifiable on economically rational grounds (Benartzi & Thaler, 2001). The naïve diversification bias is replicated across different samples using a within-participant...

Although wealth inequality in the U.S. has soared to unprecedented levels in recent decades, support for redistribution is not commonplace. This research proposes a new strategy to boost redistribution support, by prompting focus on similarity (vs. dissimilarity). Four studies conducted with...

We propose and test a new heuristic on the decision to buy or rent a house: the mortgage illusion, in which potential home buyers are influenced by the comparison between the monthly rental payment and the monthly mortgage installment, for fixed rate mortgages. We find experimental evidence that...