This paper revisits the Tragedy of the Commons - a Pareto-dominated overuse of a common resource - through the lenses of Stoicism, and, in particular, of the Stoic discipline of desires, according to which one should wish for nothing that is not under one's control. When the Stoic discipline of...

Macroeconomic expectations of various economic agents are characterized by substantial crosssectional heterogeneity. This chapter focuses on heterogeneity in the expectations among professional forecasters, first presenting stylized facts and discussing theoretical explanations for heterogeneous...

The theoretical literature on risk aversion and Expected Utility Theory is extensive; however, the analysis of this behaviour with natural experiments could be more comprehensive. In this paper, we use data from 120 episodes of the Portuguese version of the TV game show The Price is Right, namely...

The role of ethnicity in political behaviour remains unsettled theoretically. Instrumentalist theories emphasize cognitive processes, arguing that political actors strategically employ ethnicity to attain certain goals, while expressivist theories highlight affectual forces, arguing that actors...

Macroeconomic expectations of various economic agents are characterized by substantial cross-sectional heterogeneity. In this paper, we focus on expectations heterogeneity among professional forecasters. We first present stylized facts and discuss theoretical explanations for heterogeneous...

Professional forecasters' long-run inflation expectations overreact to news and exhibit persistent, predictable biases in forecast errors. A model incorporating overconfidence in private information and a persistent expectations bias-which generates persistent forecast errors across most...

Professional forecasters' long-run inflation expectations overreact to news and exhibit persistent, predictable biases in forecast errors. A model incorporating overconfidence in private information and a persistent expectations bias-which generates persistent forecast errors across most...

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...

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 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...

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’...

Iran has the world's only government-regulated kidney market. We report the results of the first field study of donor behaviour in this unusual market. Participants have lower risk tolerance and higher patience levels than the Iranian average but display no difference in rationality from...

According to Epictetus, mental freedom and happiness can be achieved by distinguishing between, on the one hand, things that are upon our con- trol (our acts, opinions and desires), and, on the other hand, things that are not upon our control (our body, property, offi ces and reputation), and by...

We find a strong relationship between risk-loving preferences and cognitive ability which becomes stronger as adherence to the generalized axiom of revealed preference (a proxy for rationality) increases. Our results are taken from a field study of individuals at the very bottom of the income...

This paper revisits the Tragedy of the Commons - a Pareto-dominated overuse of a common resource - through the lenses of Stoicism, and, in particular, of the Stoic discipline of desires, according to which one should wish for nothing that is not under one's control. When the Stoic discipline of...

Macroeconomic expectations of various economic agents are characterized by substantial crosssectional heterogeneity. This chapter focuses on heterogeneity in the expectations among professional forecasters, first presenting stylized facts and discussing theoretical explanations for heterogeneous...