We present a striking example of the deconstruction and reconstruction of an anomaly. In line with previous experiments we show in a one-shot setting that the allegedly robust false consensus effect disappears if representative information is readily available. But the effect reappears if a...

Rule learning posits that decision makers, rather than choosing over actions, choose over behavioral rules with different levels of sophistication. Rules are reinforced over time based on their historically observed payoffs in a given game. Past works on rule learning have shown that when...

In many economic contexts, an elusive variable of interest is the agent's belief about relevant events, e.g. about other agents' behavior. A growing number of surveys and experiments asks participants to state beliefs explicitly but little is known about the causal relation between beliefs and...

Nabil Al-Najjar (2008) showed how games with countably infinite player sets can be used to approximate games with large finite player sets. Unfortunately, we have found an error in the proof of Al-Najjarʼs Theorem 5. In this correction we discuss the error and offer two slightly weaker versions...

This paper studies the temporal path of subjective probability assessments. A reference-dependent agent who experiences utility from anticipation and from changes in this anticipatory emotion makes utility-maximizing assessments about his likelihood of success in a future lottery. Consistent...

The concept of rationalizability has been used in the last fifteen years to study stability of equilibria in models with a continuum of agents such as competitive markets, macroeconomic dynamics and currency attacks. However, rationalizability has been formally defined in general settings only...

Inspired by the social psychology literature, we study the implications of categorical thinking on decision making in the context of a large normal form game. Every agent has a categorization (partition) of her opponents and can only observe the average behavior in each category. A strategy...