Rewards are crucial objects that induce learning, approach behavior, choices, and
emotions. Whereas emotions are difficult to investigate in animals, the learning function is …

This article reviews recent developments in the economic theory of individual decision
making under risk. Since the 1950s it has been known that individual choices violate the …

Virtually all current theories of choice under risk or uncertainty are cognitive and
consequentialist. They assume that people assess the desirability and likelihood of possible …

Predicting and understanding how people make decisions has been a long-standing goal in
many fields, with quantitative models of human decision-making informing research in both …

Inattention is a central, unifying theme for much of behavioral economics. It permeates such
disparate fields as microeconomics, macroeconomics, finance, public economics, and …

We present a theory of choice among lotteries in which the decision maker's attention is
drawn to (precisely defined) salient payoffs. This leads the decision maker to a context …

Empirical studies have shown that decision makers do not usually treat probabilities linearly.
Instead, people tend to overweight small probabilities and underweight large probabilities …

Prospect Theory: For Risk and Ambiguity, provides a comprehensive and accessible
textbook treatment of the way decisions are made both when we have the statistical …

We conducted experiments in Vietnamese villages to determine the predictors of risk and
time preferences. In villages with higher mean income, people are less loss-averse and …

We present a theory of context-dependent choice in which a consumer's attention is drawn
to salient attributes of goods, such as quality or price. An attribute is salient for a good when …