It is often claimed that negative events carry a larger weight than positive events. Loss
aversion is the manifestation of this argument in monetary outcomes. In this review, we …

This paper reconsiders the wide agreement that females are more risk averse than males.
We survey the existing experimental literature, finding that significance and magnitude of …

A large body of empirical research has examined the impact of trading perspective on
pricing of consumer products, with the typical finding being that selling prices exceed buying …

We systematically misjudge our own performance in simple economic tasks. First, we
generally overestimate our ability to make correct choices—a bias called overconfidence …

Previous studies of loss aversion in decisions under risk have led to mixed results. Losses
appear to loom larger than gains in some settings, but not in others. The current paper …

The canonical conclusion from research on age differences in risky choice is that older
adults are more risk averse than younger adults, at least in choices involving gains. Most of …

Investors need not be rational for markets to be efficient. The axiom of efficient market
hypothesis that it is not possible to earn excess profits because the available information …

A phantom decoy is an alternative that is superior to another “target” option but is
unavailable at the time of choice. In value‐based decisions involving phantom decoys (eg …

Reinforcement learning (RL) models describe how humans and animals learn by trial-and-
error to select actions that maximize rewards and minimize punishments. Traditional RL …

People can make decisions by choosing or by rejecting alternatives. This research shows
that changing a task from choice to rejection makes people more likely to rely on deliberative …