Aim: The article aims at developing an economic theory of reorientation. As Western subjects are disoriented by long-time systematic commercial manipulation of their preferences, the theory focuses on new concepts of endogenous preferences and on the process of preference manipulation and its...

In a model inspired by neuroscience, we show that constrained optimal perception encodes lottery rewards using an S-shaped encoding function and over-samples low-probability events. The implications of this perception strategy for behavior depend on the decision-maker’s understanding of the...