The emergence of heuristics, sophisticated behavior—such as higher levels of Theory of Mind—and substantive rationality in strategic situations can be studied using evolutionary game theory to jointly account for the interactions between players and their environments. Research thus far has...

Over the past decades psychological theories have made significant headway into economics, culminating in the 2002 (partially) and 2017 Nobel prizes awarded for work in the field of Behavioural Economics. Many of the insights imported from psychology into economics share a common trait: the...

Thaler and Sunstein (2008) advance the concept of "nudge" policies -- non-regulatory and non-fiscal mechanisms designed to enlist people's cognitive biases so as to achieve the desired policy ends. A core assumption is that policy makers engage biases to advance the interests of the nudged...

Behavioral economists have done a great service in connecting psychology and economics. Up to now, however, most have focused on cognitive illusions and anomalies, in order to prove the descriptive failure of neoclassical economic models. The key problems in the cognitive illusions literature...

People differ in their willingness to take risks. Recent work found that revealed preference tasks (e.g., laboratory lotteries) - a dominant class of measures-are outperformed by survey-based stated preferences, which are more stable and predict real-world risk taking across different domains....