Many human decisions, ranging from the taking of loans with compound interest to fighting deadly pandemics, involve phenomena that entail exponential growth. Yet a wide and robust body of empirical studies demonstrates that people systematically underestimate exponential growth. This phenomenon,...

Die digitale Durchleuchtung und Bewertung des Verhaltens von Konsumenten und Bürgern nach einem Punktesystem (Scoring) ist in repressiven Staaten wie China schon weit gediehen. Aber auch in Deutschland werden mit diesem System Bürger als Verbraucher in der Finanzwirtschaft oder als Patienten...

Market regulation has traditionally focused on disclosure duties, and in recent years much attention has been given to nudges. However, there are increasing doubts about the effectiveness of disclosures and nudges. In response, some conclude that regulation should be abandoned altogether. An...

“Free” products have exploded in popularity along with widespread Internet adoption—but many of them are not truly free. Customers often trade their attention or personal information to access zero-price products. This exchange dynamic brings zero-price markets within the scope of...

This is a a slide presentation accompanying "Pigouvian Contracts" available at http://ssrn.com/abstract=4019686Pigouvian taxes are often used to limit environmental externalities such as pollution. We argue that consumer contracts generate externalities by overwhelming consumers’ attention....

Accompanying slide presentation available at http://ssrn.com/abstract=4019705Pigouvian taxes are often used to limit environmental externalities such as pollution. We argue that consumer contracts generate externalities by overwhelming consumers’ attention. Depleting each consumer’s...

תקציר בעברית: ספרות תיאורטית עשירה עוסקת בעיצוב של כללים דיספוזיטיביים, חובות גילוי והנדים, אך מעט תשומת לב הוקדשה עד היום לשאלות הכרוכות בעיצוב של כללים...

Responsible innovation in generative AI requires an in-depth understanding of the ethical risk that these models pose. Generative AI promises automated, effective influence at scale. It can be used for good but poses a significant manipulation risk. That risk has not yet examined in detail yet,...

This essay considers the role of reputational information in our marketplace. It explains how well-functioning marketplaces depend on the vibrant flow of accurate reputational information, and how misdirected regulation of reputational information could harm marketplace mechanisms. It then...

Is nudging unethical? Is choice architecture a problem for a free society? This essay defends seven propositions: (1) It is pointless to object to choice architecture or nudging as such. Choice architecture cannot be avoided. Nature itself nudges; so does the weather; so do customs and...