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 …

This article presents a selective review of economic research on attentional choice, taking
an observation of as its starting point. Because standard choice data conflate utilities and …

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 …

We study extrinsic and intrinsic motivations for tax compliance in the context of a local
church tax in Germany. This tax system has historically relied on zero deterrence so that any …

We present a theory of context-dependent choice in which a consumer's attention is drawn
to salient attributes of goods, such as quality or price. An attribute is salient for a good when …

I study the welfare and price implications of consumer privacy. A consumer discloses
information to a multiproduct seller, which learns about his preferences, sets prices, and …

We unite two basic approaches to modelling limited attention in choice by showing that the
rational inattention model implies the formation of consideration sets—only a subset of the …

We present a generally applicable theory of focusing based on the hypothesis that a person
focuses more on, and hence overweights, attributes in which her options differ more. Our …

We model a boundedly rational agent who suffers from limited attention. The agent
considers each feasible alternative with a given (unobservable) probability, the attention …

The standard revealed preference argument relies on an implicit assumption that a decision
maker considers all feasible alternatives. The marketing and psychology literatures …