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 …

The poor can and do save, but often use formal or informal instruments that have high risk,
high cost, and limited functionality. This could lead to undersaving compared to a world …

We show that mutual fund investors rely on simple signals and likely do not engage in
sophisticated learning about managers' alpha as widely believed. Simplistic performance …

In many economic decisions, people estimate probabilities, such as the likelihood that a risk
materializes or that a job applicant will be a productive employee, by retrieving experiences …

We present a new model of investors delegating portfolio management to professionals
based on trust. Trust in the manager reduces an investor's perception of the riskiness of a …

When is it possible for one person to persuade another to change her action? We consider a
symmetric information model where a sender chooses a signal to reveal to a receiver, who …

This article examines the consequences and causes of low enrollment of Black patients in
clinical trials. We develop a simple model of similarity-based extrapolation that predicts that …

We provide a selective survey of empirical evidence on the effects as well as the drivers of
persuasive communication. We consider persuasion directed at consumers, voters, donors …

How can price elasticities be identified when agents face optimization frictions such as
adjustment costs or inattention? I derive bounds on structural price elasticities that are a …

By downplaying externalities, magnifying the cost of moral behavior, or suggesting not being
pivotal, exculpatory narratives can allow individuals to maintain a positive image when in …