This paper studies whether anomalies in consumption can be explained by a behavioral model in which agents make predictable errors in forecasting income. We use a micro-data set containing subjective expectations about future income. The paper shows that, the null hypothesis of rational...

Purpose – This study aims to explore the economic impact of the Great Recession on consumers' economic attitudes and behaviors. Design/methodology/approach – Data were collected through a questionnaire completed by 2,120 subjects. Eight propositions involving six constructs (i.e....

Purpose The financially excluded are often denied basic financial services from mainstream banking institutions, leading them to high-cost fringe finance institutions (FFIs) such as payday loan companies and pawnshops. While strategies to address financial exclusion often include financial...

The most important financial source for behavioral economics is the Russell Sage Foundation (RSF). The most prominent behavioral economists among the RSF’s twenty-six member Behavioral Economics Roundtable (BER) are Kahneman, Tversky, Thaler, Camerer, Loewenstein, Rabin, and Laibson. The...

We derive a generalized method for calculating the total number of Paretooptimal allocations (NOPA) in typical linear public goods games. Among other things, the method allows researchers to develop new experimental designs for testing the relevance of Pareto-optimality in experimental settings,...

This paper is a contribution to the study of behavioral economics. It proposes a model of decision making process and includes the affective and cognitive systems, both them included when anyone evaluates the options to select one. First of all, a literature review was done. Secondly, an...