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 …

When choosing between delayed or uncertain outcomes, individuals discount the value of
such outcomes on the basis of the expected time to or the likelihood of their occurrence. In …

Humans are a puzzling species. On the one hand, we struggle to survive on our own in the
wild, often failing to overcome even basic challenges, like obtaining food, building shelters …

The most influential book of the past seventy-five years: a groundbreaking exploration of
everything we know about what we don't know, now with a new section called “On …

This article described three heuristics that are employed in making judgments under
uncertainty:(i) representativeness, which is usually employed when people are asked to …

Game theory, the formalized study of strategy, began in the 1940s by asking how
emotionless geniuses should play games, but ignored until recently how average people …

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 …

Behavioral finance argues that some financial phenomena can plausibly be understood
using models in which some agents are not fully rational. The field has two building blocks …

Environments with public goods are a wonderful playground for those interested in delicate
experimental problems, serious theoretical challenges, and difficult mechanism design …

Objections to the rational actor model in law and economics are almost as old as the field
itself. Early skeptics about the economic analysis of law were quick to marshal arguments …