We review the fast-growing work on salience and economic behavior. Psychological
research shows that salient stimuli attract human attention bottom up due to their high …

Markets for consumer financial services are growing rapidly in low-and middle-income
countries and are being transformed by digital technologies and platforms. With growth and …

Behavioral development economics applies theories and ideas from psychology and
behavioral economics to the study of questions in development economics. We begin by …

We study inaccurate beliefs as a source of discrimination. Economists typically characterize
discrimination as stemming from a taste-based (preference) or accurate statistical (belief …

Consumers suffer significant losses from not acting on available information. These losses
stem from frictions such as search costs, switching costs, and rational inattention, as well as …

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 experimentally test a theory of risky choice in which the perception of a lottery payoff is
noisy due to information processing constraints in the brain. We model perception using the …

We develop a dynamic model of political competition between two groups that differ in their
subjective model of the data generating process for a common outcome. One group has a …

We explore the learning process and behavior of an individual with unrealistically high
expectations (overconfidence) when outcomes also depend on an external fundamental that …

It is often argued that people might take on too much high-cost debt because they are
present focused and/or over-optimistic about how soon they will repay. We measure …