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Over-confidence and low-cost heuristics : an experimental investigation of choice behavior

Cicognani, Simona; Mittone, Luigi - 2014

This paper extends choice theory by allowing for the interaction between cognitive costs and imitative dynamics. The authors experimentally investigate the role of imitation when participants face a task which is costly in cognitive terms. In order to disentangle different choice dynamics, they...

Persistent link: https://www.econbiz.de/10010425055

Anchoring in financial decision-making : evidence from the field

Jetter, Michael; Walker, Jay K. - 2016

This paper analyzes 12,596 wagering decisions of 6,064 contestants in the US game show Jeopardy!, focusing on the anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue in their wagering decision, even though there exists...

Persistent link: https://www.econbiz.de/10011526727

Behavioral Finance : A Study of Affect Heuristic and Anchoring in Decision Making of Individual Investors

Matsumoto, Alberto S. - 2013

The objective of this article is to investigate the presence of affect and anchoring biases in the financial decision making of individual investors. Another parallel objective is to verify whether the gender factor (male and female) or financial knowledge interfere with the presence of these...

Persistent link: https://www.econbiz.de/10013072544

Anchoring and subjective belief distributions

Holm, Håkan J.; Veldhuizen, Roel van; Wengström, Erik; … - 2024

We investigate how the anchoring effect-a well-established cognitive bias-influences the full distribution of subjective beliefs. While prior research extensively examines the impact of anchoring and other biases on point estimates, their effect on higher moments of the distribution remains...

Persistent link: https://www.econbiz.de/10014515782

The Psychological Foundations of Rational Ignorance : Biased Heuristics and Decision Costs

Taylor, Brad - 2019

Rational ignorance and related models of voter choice have been accused of psychological implausibility or even incoherence. Although such models run counter to folk psychological understandings of choice, this paper argues that they are consistent with widely-accepted dual process theories of...

Persistent link: https://www.econbiz.de/10014104535

Choosing a good toolkit, I : formulation, heuristics, and asymptotic properties

Francetich, Alejandro; Kreps, David M. - 2016

problem presumably resort to “sensible” decision heuristics, employing past experience and, perhaps, what they know about the … variety of heuristics, and provide some theoretical results about how the heuristics perform asymptotically. (In the second … paper, we compare the performance of these heuristics through simulations.) …

Persistent link: https://www.econbiz.de/10011864877

Choosing a good toolkit, II : simulations and conclusions

Francetich, Alejandro; Kreps, David M. - 2016

This paper continues our study of heuristics employed to choose dynamically tools to put in a toolkit, where the value … number of test problems, learning the strengths and weaknesses of the various heuristics …

Persistent link: https://www.econbiz.de/10011864881

Decisions, preferences, and heuristics : an introduction to economic psychology and behavioral economics

Mir Artigues, Pere - 2023

elements together, the author presents a seminal model combining preferences and heuristics to explain choices in the …

Persistent link: https://www.econbiz.de/10014372512

Behavioral welfare economics

Sunstein, Cass R. - In: Journal of benefit-cost analysis : JBCA 11 (2020) 2, pp. 196-220

Persistent link: https://www.econbiz.de/10012258535

Contingent belief updating

Aina, Chiara; Amelio, Andrea; Brütt, Katharina - 2023

We study how contingent thinking - that is, reasoning through all possible contingencies without knowing which is realized - affects belief updating. According to the Bayesian benchmark, beliefs updated after exposure to new information should be equivalent to beliefs assessed for the...

Persistent link: https://www.econbiz.de/10014416232