Using a large sample of individuals who hold Target Retirement Funds (TRFs), we examine how people use mental arithmetic in estimating their retirement age. We find a strong “zero” bias, in that investors have a strong preference for TRFs that end with zero (2030, 2040) as compared to TRFs...

Economic models typically allow for “free disposal†or “reversibility†of information, which implies non-negative value. Building on previous research on the “curse of knowledge†we explore situations where this might not be so. In three experiments, we document...

When drawing inferences about a person’s personal characteristics from their actions, “correspondence bias” is the tendency to overestimate the influence of those characteristics and underestimate the influence of situational factors, such as incentives the individual faces. We build a...