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 …

Taxes on sugar-sweetened beverages are growing in popularity and have generated an
active public debate. Are they a good idea? If so, how high should they be? Are such taxes …

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

A common objection to “sin taxes”—corrective taxes on goods that are thought to be
overconsumed, such as cigarettes, alcohol, and sugary drinks—is that they often fall …

The debate about behavioral economics–the incorporation of insights from psychology into
economics–is often framed as a question about the foundational assumptions of economic …

Imperfect information and inattention to energy costs are important potential motivations for
energy efficiency standards and subsidies. We evaluate these motivations in the lightbulb …

Building on a textbook description of associative memory, we present a model of choice in
which a choice option cues recall of similar past experiences. Memory shapes valuation and …

This article shows that accounting for variation in mistakes can be crucial for welfare
analysis. Focusing on consumer under-reaction to not-fully-salient sales taxes, we show …

This handbook chapter reviews recent developments in the theory of optimal labor income
taxation. We emphasize connections between theory and empirical work that were initially …

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 …