We use an experiment to test whether consumers optimally acquire information on energy costs in appliance markets where, like many contexts, consumers are poorly informed and make mistakes despite freely available information. To test for optimal information acquisition we compare the average...

We use an experiment to test whether consumers optimally acquire information on energy costs in appliance markets where, like many contexts, consumers are poorly informed and make mistakes despite freely available information. To test for optimal information acquisition we compare the average...

Sequential choices are ubiquitous in daily life, yet making optimal decisions in such settings--where properly accounting for option value is crucial--can be challenging. This paper provides field experimental evidence on the neglect of option value in high-stakes decisions and quantifies the...

"This comprehensive textbook explores how technological developments and emerging technologies impact on, and engage with, consumer behaviour and decision-making globally. The book will enable readers to develop a coherent understanding of the basic underpinning of consumer behaviour as they...

Marginal outcome tests compare the expected effects of a decision on individuals who are of different races but at the same indifference point of the decision-maker. I present a simple formalization of how such tests can detect racial bias, defined as a deviation from accurate statistical...