Bhattacharya, Jay; Goldman, Dana; Sood, Neeraj - In: Journal of Economic Behavior & Organization 72 (2009) 1, pp. 451-462
We construct and implement a test of rational consumer behavior in a high-stakes financial market. In particular, we test whether consumers make systematic mistakes in perceiving their mortality risks. We implement this test using data from secondary life insurance markets where consumers with a...