This paper integrates overprecision-a form of overconfidence where individuals overestimate the accuracy of their beliefs-into a canonical rational inattention model. We show that overprecision distorts belief updating directly by biasing the perceived value of new information and indirectly by...

Why are inefficient policies popular? One explanation is incomplete voter information. Evidence from survey experiments in Argentina points instead to inattention. The experiments explore voter evaluations of two anti-inflation policies, price controls and limits on monetary emission....

Revealed preference theory (RPT) and its behavioral extension (BRPT) underpin an important strand of welfare economics. Their normative appeal rests on the claim that welfare can be inferred from observed behavior without substantive assumptions about what agents should value - a property I call...

We analyze a principal-agent procurement problem in which the principal (she) is unaware some of the marginal cost types of the agent (he). Communication arises naturally as some types of the agent may have an incentive to raise the principal's awareness (totally or partially) before a contract...

The well-known cooperative game solution core, with its strict stability requirement, provides no solution for non-balanced games. Subiza et al. (2025) relaxes the stability concept of the core and proposes δ-stable set, a non-empty solution for every essential TU-game. However, their approach...

Models of limited attention have the potential to become a new unifying paradigm that could replace the rational choice approach. In this paper, we test the limited attention hypothesis by enhancing attention using pharmacological substances. A total of 160 subjects participated in our...

This paper analyzes the mechanisms by which Stoic ethics can produce coordination. We study how agents satisfying the Stoic discipline of desires (that is, one should wish for nothing that is out of control, including other players'acts) behave in 2-player simultaneous symmetric coordination...

We study response behavior in surveys and propose a method to identify and improve the informativeness of survey evidence. First, we develop a choice model of survey response behavior under the assumption that responses imperfectly reveal respondents' characteristics due to limited...

Evidence suggests that smokers' responsiveness to cessation medication depends on genotypes. Whether personalized treatment based on genotypes is cost effec- tive compared to standard treatments, however, has been unexplored. We thus construct a lifecycle model with endogenous health evolution...

We reappraise the Arrow problem by studying the aggregation of choice functions. We do so in the general framework of judgment aggregation, in which choice functions are naturally representable by specifying, for each menu A and each alternative x in A, whether x is choosable from A, or not. Our...

Homo economicus has justly been identified as the universal bogeyman of economics. Economic man, having been showered with criticism for a century and a half, continues to occupy critics to this day. Plenty of economists in the previous century have proclaimed the death of homo economicus and...

This paper critiques constrained optimization as the dominant framework in contemporary economics by revealing its implicit theological flaw: the assumption that constraints are inherently bad. The author traces the development of Homo Economicus from Mill through Robbins to Becker, examining...

Libertarian paternalism is "the set of interventions aimed at overcoming the unavoidable cognitive biases and decisional inadequacies of an individual by exploiting them in such a way as to influence her decisions (in an easily reversible manner) towards choices that she herself would make if...

We present a self- and social-signaling model formalizing findings in political psychology that moral and political judgments stem primarily from intuition and emotion, while reasoning serves to rationalize these intuitions to maintain an image of impartiality. In social interactions, agents’...

We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature...

We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature...

The relationship between economic inequality and violent crime is usually equated with rational choice or strain theory, although adjudicating between these two distinct perspectives is exceedingly burdensome because their respective predictions are analogous. Multilevel data for 66 cities...