Many investors rely on brokers to route their orders to exchanges. Exchanges charge fees to the broker who routes the order, rather than to the investor. Brokers have an incentive to route based on the fees, instead of the execution quality experienced by their clients. This conflict of interest...

Decision-makers typically rely on informative starting points that are somewhat incorrect and then attempt to make appropriate adjustments. Such reliance on informative starting points may be an optimal response of a Bayesian decision-maker who faces finite computational resources (Lieder et al...