We show that continuous models of stimulus-driven attention can account for skewness-related puzzles in decision-making under risk. First,we delineate that these models provide awell-defined theory of choice under risk. We therefore prove that in continuous - in contrast to discrete - models of...

Prüfungsleistungen in vielen Hochschulfächern werden heutzutage fast ausschließlich mit den Noten „sehr gut“ oder „gut“ bewertet. Die Verbesserung der Prüfungsnoten wird als Noteninflation bezeichnet – ein Begriff, der in der Regel negativ konnotiert ist. Er kann aber auch als eine...

We show that continuous models of stimulus-driven attention can account for skewness-related puzzles in decision-making under risk. First,we delineate that these models provide awell-defined theory of choice under risk. We therefore prove that in continuous - in contrast to discrete - models of...

This paper analyzes optimal grading in a world that focuses on top grades. Students choose an effort level, their performance is graded, and their grade correlates with their future income. Ex-ante, the policy maker chooses the optimal coarseness of the grading scale to maximize student welfare....