This study establishes analytical closed-form mathematical parameterizations for each of overconfidence or underconfidence that boundedly are rational. Given that, feasibly `boundedly rational overconfident (BRoverconfident)' agents revert, over time, to `boundedly rational underconfidence...

As Herbert Simon foresaw in the early stages of what has come to be known as the information age, a widespread abundance of information has made limited attention an increasingly pivotal constraint on economic activity, to the degree that attention is now the primary factor of production...

The purpose of this paper is to describe a study that was designed to determine to what extent subjective and objective measures of financial knowledge moderate the relationship between an investor’s financial risk tolerance and demographic factors thought to be important descriptors of an...

We study how correcting people’s beliefs about social norms and behavioral trends encourages collective action in a setting where the desired behavior is not yet prevalent. In a field experiment among 1,709 subjects, we test whether low sign-up rates for a recycling program in urban Peru can...

The judgments of human beings can be biased; they can also be noisy. Across a wide range of settings, use of algorithms is likely to improve accuracy, because algorithms will reduce both bias and noise. Indeed, algorithms can help identify the role of human biases; they might even identify biases...

Nudges are policy interventions intended to change people’s behaviors and habits by organizing the choice environment. They aim to facilitate the right behavior as judged by people themselves according to some objective or consensual version of wellbeing. Nudges are utilized to boost...

We study the value of and the demand for instrumentally-valuable information in a simple decision environment where signals are transparently polarized. We find that in both information aggregation and acquisition, subjects use sophisticated heuristics to counter the polarization in signals....

This paper describes the Australian Twins Economic Preferences Survey (ATEPS). The dataset comprises a wide variety of preference and behavioral measures (risk aversion, impatience, ambiguity aversion, trust, confidence) elicited using incentivised decision tasks. 1,120 Australian adult twins...

In this paper, we apply the idea of $k$-local contraction of \cite{zec, zet} to study discounted stochastic dynamic programming models with unbounded returns. Our main results concern the existence of a unique solution to the Bellman equation and are applied to the theory of stochastic optimal...

What information would people like to have? What information would they prefer to avoid? How does the provision of information bear on welfare? And what does this mean for food policy? Representative surveys in eleven nations find that substantial percentages of people do not want to receive...