Since the advent of the discounted utility (DU) model economists have thought about intertemporal choice in very specific terms. DU assumes that people make explicit tradeoffs between costs and benefits occurring at different points in time. While this explicit tradeoff perspective is simple and...

This article, prepared for the forthcoming third edition of The Handbook of Emotion, surveys behavioral economic and neuroeconomic research on the influence of expected and immediate emotions on decision making under risk, intertemporal choice, and social preferences

Consumers often behave differently than they would ideally like to behave. We propose that an anticipatory pain of paying drives tightwads to spend less than they would ideally like to spend. Spendthrifts, by contrast, experience too little pain of paying and typically spend more than they would...

Much is understood about loss aversion (the tendency for losses to have greater hedonic impact than comparable gains), but open questions remain. First, there is debate about whether loss aversion is best understood as the byproduct of a single system within the brain that treats losses and...

Alcohol consumption and cognitive impairment frequently co-occur. We propose that the relationship is so familiar that exposure to alcohol cues primes expectations of cognitive impairment. Across five studies, we find that in the absence of any evidence of reduced cognitive performance, people...