When choice options are complex, policy makers may seek to reduce decision making errors by making a high quality option the default. We show that this positive effect is at risk because such a policy creates incentives for decision makers to "drop out" by paying no attention to the decision and...

1 Introduction to Cognitive Economics -- 2 Cognitive Household Finance -- 3 Measuring and Minimizing Mistakes -- 4 Cognitive Economics at Work -- 5 Cognitive Capital and Human-AI Interactions -- 6 Work Skills for the Cognitive Economy -- 7 Cognitive Economics in Teaching -- 8. Cognitive...

The central question we address in this paper is: what can an analyst infer from choice data about what a decision maker has learned? The key constraint we impose, which is shared across models of Bayesian learning, is that any learning must be rationalizable. To implement this constraint, we...