In institutional frameworks comprising of n2 agents, there are often aspects of the institution or specific exchanges or entities within the institution that require to be changed. Carrying out such a change involves a game of co-ordination between the agents who wish to make it and they can...

This paper explores how an individual can deceive herself in order to acquire a more favorable self-view. I present a theoretical model and a laboratory experiment in which each subject's donation to a charity gets transformed into an ambiguous lottery, i.e., a lottery where the winning...

This paper studies the implications of information-processing limits on the consumption and savings behavior of households through time. It presents a dynamic model in which consumers rationally choose the size and scope of the information they want to process about their fi�nancial...

Does attention have a causal impact on risky decisions? We address this question in a preregistered experiment in which participants accept or reject a series of mixed gambles while exogenously varying how information can be sampled. Specifically, in each trial participants observe the outcomes...

This paper studies sequential information acquisition by an ambiguity-averse decision maker (DM), who decides how long to collect information before taking an irreversible action. The agent optimizes against the worst-case belief and updates prior by prior. We show that the consideration of...

In this paper we consider a population of would-be migrants in a developing country. To begin with, this population is divided into two sets: those who save by themselves to pay for the cost of their migration, and those who pool their savings with the savings of another would-be migrant to pay...

We report the results of an experiment on selective exposure to information. A decision maker interested in learning about an uncertain state of the world can acquire information from one of two sources which have opposite biases: when informed on the state, they report it truthfully; when...

Before choosing her action to match the state of the world, an agent observes a stream of messages generated by some unknown binary signal. The agent can either learn the underlying signal for free and update her belief accordingly or ignore the observed message and keep her prior belief. After...

Sustainability ratings help consumers understand the environmental impact of their purchases. Such ratings have increased the consumers' sustainable choices in the electrodomestics and housing markets. In the particular case of energy labels, sustainable products are also associated with private...

Dynamic consistency leads to Bayesian updating under expected utility. We ask what it implies for the updating of more general preferences. In this paper, we characterize dynamically consistent update rules for preference models satisfying ambiguity aversion. This characterization extends to...