Borrowing decisions affect most households, with large stakes and implications for research
subfields as varied as macroeconomics and industrial organization. I review theoretical and …

This chapter surveys the literature on behavioral industrial organization, covering four broad
topics:(1) how rational firms interact with consumers who make systematic mistakes in …

Standard labor market models assume that workers hold accurate beliefs about the external
wage distribution, and hence their outside options with other employers. We test this …

The term 'managerialism'has been widely used but theoretical publications on
managerialism remain rare while theory development continues to be insufficient. This …

The research in Psychology and Economics (aka Behavioral Economics) suggests that
individuals deviate from the standard model in three respects:(1) nonstandard …

Bayesian consumers infer that hidden add-on prices (eg, the cost of ink for a printer) are
likely to be high prices. If consumers are Bayesian, firms will not shroud information in …

In cross-sectional data sets from ten credit markets, we find that middle-aged adults borrow
at lower interest rates and pay fewer fees relative to younger and older adults. Fee and …

How do consumers choose from a menu of contracts? We analyze a novel dataset from
three US health clubs with information on both the contractual choice and the day-to-day …

Policymakers often assert that consumers undervalue future gasoline costs when they buy
automobiles. We test this by measuring whether relative prices of vehicles with different fuel …

Can incentives be effective in encouraging the development of good habits? We investigate
the post‐intervention effects of paying people to attend a gym a number of times during one …