We provide evidence that classic lottery anomalies like probability weighting and loss
aversion are not special phenomena of risk. They also arise (and often with equal strength) …

This paper explores how cognitive constraints—namely, attention and processing capacity—
interact with properties of the learning environment to determine how people react to …

We report a large-scale examination of behavioral attenuation: due to information-
processing constraints, the elasticity of people's decisions with respect to economic …

This review organizes the vibrant recent literature on the cognitive foundations of economic
decision-making. At a basic level, this entire literature studies imperfections in information …

We propose and experimentally test a new theory of probability distortions in risky choice.
The theory is based on a core principle from neuroscience called efficient coding, which …

A growing literature has shown that people sometimes prefer to randomize between two
options. We investigate how prevalent this behavior is in an experiment using a novel and …

We develop a micro-founded framework for accounting for individuals' effort and cognitive
noise which confound estimates of preferences based on observed behavior. Using a …

We examine how stakes affect investor behaviors. In our unique setting, the same investors
trade stocks in real accounts using their own money and, at the same time, trade in a …

A classic result of psychophysics is that human perceptual estimates are more variable for
larger magnitudes. This 'Weber behavior'has typically not been the focus of the prominent …

Risk preferences-the willingness to accept greater uncertainty to achieve larger potential
rewards-determine many aspects of our lives and are often interpreted as an individual trait …