We document outcome bias in situations where an agent makes risky financial decisions for a principal. In three …

The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory …

The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory …

We investigate how the anchoring effect-a well-established cognitive bias-influences the full distribution of …

This paper considers the implications of an important cognitive bias in information processing, confirmation bias, in a …, we show that when voters have this bias, it decreases pandering by the incumbent, and can raise voter welfare as a … evolution of confirmation bias can lead to more pandering before the first election. Finally, we show that when confirmation …