Three studies of attitudes toward tax policies were conducted on the World Wide Web. The results show several effects. In penalty aversion, subjects preferred bonuses over penalties, when policies differ only in how they are formally described. In the Schelling effect, subjects prefer both...

This Article is motivated by a puzzle. Lottery play is extremely common. Yet such play is inconsistent with standard economic theories of the consumer, which feature rationality and risk aversion. Faced with the puzzle, theorists have generally tried to save risk aversion at the expense of...

The principal findings of behavioral economics and cognitive psychology over the past several decades have been to show that human beings deviate from ideal precepts of rationality in many settings, showing inconsistent judgment in the face of framing and other formal manipulations of the...