This paper discusses the discounted utility (DU) model: its historical development,
underlying assumptions, and “anomalies”-the empirical regularities that are inconsistent with …

Much of empirical corporate finance focuses on sources of the demand for various forms of
capital, not the supply. Recently, this has changed. Supply effects of equity and credit …

Abstract The United Nations' Sustainable Development Goals (SDGs) have created societal
and political pressure for pension funds to address sustainable investing. We run two field …

Winner of the Nobel Prize in Economics Get ready to change the way you think about
economics. Nobel laureate Richard H. Thaler has spent his career studying the radical …

When people make decisions with a pre-selected choice option–a 'default'–they are more
likely to select that option. Because defaults are easy to implement, they constitute one of the …

The way a choice is presented influences what a decision-maker chooses. This paper
outlines the tools available to choice architects, that is anyone who present people with …

Procrastination is a well-known phenomenon that often entails negative outcomes with
regard to performance and subjective well-being. In an attempt to understand the (alarming) …

In recent years there has been growing interest in the mixture of psychology and economics
that has come to be known as “behavioral economics.” As is true with many seemingly …

This paper analyzes the impact of automatic enrollment on 401 (k) savings behavior. We
have two key findings. First, 401 (k) participation is significantly higher under automatic …

While present bias is an old idea, it only took hold in economics following David Laibson's
(1994) dissertation. Over the past 20 years, research has led to a much better theoretical …