Errors in probabilistic reasoning have been the focus of much psychology research and are
among the original topics of modern behavioral economics. This chapter reviews theory and …

Purpose–The purpose of this paper is to review and integrate the extensive literature base
which examines judgment and decision‐making biases, to introduce this literature to the …

BEHAVIORAL ECONOMICS increases the explanatory power of economics by providing it
with more realistic psychological foundations. This book consists of representative recent …

Many information structures generate correlated rather than mutually independent signals,
the news media being a prime example. This article provides experimental evidence that …

The main objectives of this paper are:(i) To give a pithy, opinionated summary of what has
been learned about bounded rationality in individual decision making from experiments in …

The recent Enron bankruptcy is one of those rare events that brings corporate and securities
law close to sustained public attention. 2 It has shaken confidence that the prevailing legal …

Bayesian theories of cognition assume that people can integrate probabilities rationally.
However, several empirical findings contradict this proposition: human probabilistic …

In their personal lives, many economists recognize that they are surrounded by individuals
who are less than fully rational. In their professional lives, however, economists often use …

What does it mean to have a" good" or" bad" reputation? How does it create or destroy
value, or shape chances to pursue particular opportunities? Where do reputations come …

This paper reports the results of experiments designed to test whether individuals and
groups abide by monotonicity with respect to first-order stochastic dominance and Bayesian …