Errors in probabilistic reasoning have been the focus of much psychology research and are among the original topics of modern behavioral economics. This chapter reviews theory and evidence on this topic, with the goal of facilitating more systematic study of belief biases and their integration...

We study the pattern of correlations across a large number of behavioral regularities, with the goal of creating an empirical basis for more comprehensive theories of decision-making. We elicit 21 behaviors using an incentivized survey on a representative sample (n = 1;000) of the U.S....

Hyperbolic discounting and lack of self-control are different phenomena that share the property of dynamic inconsistency. Despite being different, these two concepts have been extensively conflated and confused in Economics. I review the definitions and properties of both concepts, the...

The dynamics of cryptocurrency prices and on-line search about them during the 2016-2018 period reveals a direct/positive mutual feedback relationship during the bubble formation phase that weakened considerably when the prices started to fall. This behavior is prevalent for Bitcoin and...

Behaviorally informed policies of interventions in choice architecture are growingly used to nudge people towards socially desirable behaviors. While consumers are usually the target of those nudges, businesses often serve as “nudging agents" on behalf of government regulation, or may be the...

This paper investigates risk preference at older ages in 14 European countries. Older individuals report greater risk aversion. Using the longitudinal nature of the data we are able to show this relationship between risk preferences and age is not due to cohort effects or selective mortality. We...

Systematic differences in the attitudes of men and women toward risk is well established and has been shown to contribute substantially to gender-specific outcomes within labour markets and goods markets. Despite these important implications, surprisingly little is known about the source of...

Anger is an important driver in shaping economic activities, particularly in instances that involve strategic interactions between individuals. Here we test whether anger impairs the capacity to think strategically, and we analyze the implications of our result on bargaining and cooperation...

Money attitudes or an individual's feelings towards money is an important factor in determining their financial behavior and financial wellbeing. A large section of the Indian population faces financial stress due to low incomes and a lack of financial education. It is important to understand...