In recent years, experiments have documented a new mechanism that leads to failures of
profit maximization: the failure of contingent thinking (FCT). This article summarizes key …

We provide evidence that classic lottery anomalies like probability weighting and loss
aversion are not special phenomena of risk. They also arise (and often with equal strength) …

This article documents the economic relevance of measuring cognitive uncertainty: people's
subjective uncertainty over their ex ante utility-maximizing decision. In a series of …

Expectations are a critical factor in determining actions in a great variety of economic
interactions. Hence, being able to measure beliefs is important in many economic …

Despite decades of research on heuristics and biases, evidence on the effect of large
incentives on cognitive biases is scant. We test the effect of incentives on four widely …

For many decisions, we encounter relevant information over the course of days, months or
years. We consume such information in various forms, including stories–qualitative content …

News reports and communication are inherently constrained by space, time, and attention.
As a result, news sources often condition the decision of whether to share a piece of …

We examine how owning a good affects learning and beliefs about its quality. We show that
people have more extreme reactions to information about a good they own compared with …

We provide evidence that the signature empirical patterns of prospect theory are not special
phenomena of risk. They also arise (and often with equal strength) when subjects evaluate …

Information is often embedded in memorable contexts, which may cue the asymmetric recall
of similar past news through associative memory. We design a theory-driven experiment, in …