How do individuals’ beliefs respond to ego-relevant information? After receiving noisy, but unbiased performance feedback, participants in an experiment overestimate their own scores on a quiz and believe their feedback to be ‘unlucky’, estimating that it under-represents their score by...

We examine decision-making under risk and uncertainty in a laboratory experiment. The heart of our design examines how one’s propensity to use Bayes’ rule is affected by whether this rule is aligned with reinforcement or clashes with it. In some cases, we create environments where...

This paper reports the results of experiments designed to test whether individuals and groups abide by monotonicity with respect to first-order stochastic dominance and Bayesian updating, when making decisions under risk. The results indicate a significant number of violations of both...

We use experimental methods to investigate the extent to which breakdowns in coordination can lead to bank runs. Subjects decide whether to leave money deposited in a bank or withdraw it early; a run occurs when there are too many early withdrawals. We explore the effects of randomly forcing...