There are two regularities we have learned from experimental studies of choice under risk. The first is that the majority of people weigh objective probabilities non-linearly. The second regularity, although less commonly acknowledged, is that there is a large amount of heterogeneity in how...

Morgens Zeitungsausträger, tagsüber Fachgehilfe, nachts kritischer Taxifahrer -- ist das die böse aktuelle Version der alten Marxschen Utopie: "Morgens Jäger, mittags Fischer, abends kritischer Kritiker"? Fest steht jedenfalls: Die herkömmlichen Vorstellungen von Arbeitszeit und...

There are two regularities we have learned from experimental studies of choice under risk. The first is that the majority of people weigh objective probabilities non-linearly. The second regularity, although less commonly acknowledged, is that there is a large amount of heterogeneity in how...

Economists have become increasingly interested in using attention to explain behavioral patterns both on the micro and macro level. This has resulted in several disparate theoretical approaches. Some, like rational inattention, assume a “top-down” model of executive optimization. Others,...