This paper provides evidence of bounded rationality by large dealers in U.S. Treasury auctions. I argue that these dealers use a heuristic of yield-space bidding which leads to biases manifested in three ways: they submit dominated bids, i.e., those that could be improved without raising the...

International legalization promises to civilize world politics with global legal norms that bind states' behavior effectively. However, international legal norm can also institutionalize unjust forms of cooperation and the dominance of powerful states. In order to challenge unjust global rules...

This paper analyzes a boundedly rational decision maker who is uncertain about his preference and faces the following trade-off: adding a good to the choice set has a positive option value but increases the complexity of the choice problem. The increased complexity is modeled as a reduction of...