Persistent #Overconfidence & Biased Memory: Evidence from Managers http://d.repec.org/n?u=RePEc:iza:izadps:dp16283&r=lma
"…findings in this paper are consistent with managers being overconfident about their future relative performance in the workplace, despite substantial feedback. The evidence of overly-positive memories of past feedback, & a link between these & overconfident predictions, points to an explanation based on #motivatedBeliefs."
#BoundedRationality #LaborEconomics

http://d.repec.org/n?u=RePEc:iza:izadps:dp16284
"…dynamic incentives in the form of ratchet effects can be shrouded by contract complexity
…incentive design is sensitive to details of the work environment that would not matter under standard theory…the specific way incentives are communicated, details of the structure of incentives, the distribution of #boundedRationality in the workforce, & potential opportunities & motives for learning about shrouded attributes
#LaborEcon

Law Students Suffer From Lake Wobegon Effect https://reason.com/volokh/2023/07/26/law-students-suffer-from-lake-wobegon-effect/
#BoundedRationality

The Economic Institutions of Artificial Intelligence
https://dx.doi.org/10.2139/ssrn.4456471
"#AI can help overcome the #BoundedRationality problem by processing large amounts of data, finding patterns and insights, and making predictions and recommendations. This insight raises the question: can AI overcome planning problems – could it be that #CentralPlanning is now a viable option?" — No.

#economics #InformationProblem #Hayek

Cooperativeness judgments of and by beautiful people http://d.repec.org/n?u=RePEc:gat:wpaper:2309&r=exp
Perceived beauty is one of the strongest predictors of perceived cooperativeness, causing the “#beautyBias”.
…demonstrates the robustness of the beauty bias despite its irrelevance for making accurate predictions.
…observes that individuals are affected by the beauty bias irrespective of their beauty.
#BoundedRationality #ExperimentalEcon

"The urge to do everything faster and better is risky. Far wiser to do what’s good enough for the range of possible futures"
https://psyche.co/ideas/why-efficiency-is-dangerous-and-slowing-down-makes-life-better
#BoundedRationality #satisficing #efficiency

Two new RePEc: NEP categories:
NEP-NUD https://ideas.repec.org/n/nep-nud/ working papers in the area of #Nudge & #Boosting
(#BoundedRationality)

NEP-AIN
https://ideas.repec.org/n/nep-ain/
working papers in the area of #ArtificialIntelligence #AI

#economics

It's not a bug, it's a feature: Revisiting Kahneman and Tversky's insights on subjective satisfaction https://lionelpage.substack.com/p/its-not-a-bug-its-a-feature-revisiting
#BoundedRationality #BehavioralEconomics

Robust Predictions in Games with #Rational #Inattention https://arxiv.org/abs/2306.09964
"… underscores the significance of considering the costs of information acquisition when assessing players’ welfare…mistakenly assuming that information is given when it is actually acquired can lead one to overestimate the benefits players derive from their information, and so may result in misleading welfare conclusions."
#BoundedRationality

Optimal #Paternalism in a Population with Bounded Rationality
https://www.nber.org/system/files/working_papers/w31349/w31349.pdf
"…detailed empirical knowledge of population distributions of preferences and #BoundedRationality is rare. Hence, we express caution against premature implementation of policies that attempt to ameliorate bounded rationality by constraining or influencing choice behavior. In the absence of firm empirical understanding of population behavior, such policies may do more harm than good."

#SocialPreferences: fundamental characteristics & economic consequences http://d.repec.org/n?u=RePEc:zur:econwp:432&r=exp
…overview of the empirically identified characteristics of distributional preferences and how they are affected by merit, luck, and risk considerations as well as by concerns for equality of opportunity.… the majority of individuals have some sort of social preference while purely self-interested subjects are a minority
#ExperimentalEcon #BoundedRationality

Revisiting the Behavioral Revolution in Economics https://www.project-syndicate.org/commentary/behavioral-economics-revolution-has-been-tamed-by-antara-haldar-2023-06
#BehavioralEconomics #BoundedRationality #ReplicationCrisis

#SocialPreferences and Deliberately Stochastic Behavior http://d.repec.org/n?u=RePEc:arx:papers:2304.14977&r=exp
#BoundedRationality

Autonomous nudges and #AI Choice Architects – Where does responsibility lie in computer mediated decision-making?
https://blogs.lse.ac.uk/impactofsocialsciences/2022/08/02/autonomous-nudges-and-ai-choice-architects-where-does-responsibility-lie-in-computer-mediated-decision-making/

"…the #responsibility gap for autonomous choice architects is an illusion; the product of a ‘veil of complexity’"
#aiEthics #BoundedRationality
#nudge

When #AI is used for making health decisions, hiring decisions, financial credit decisions, or automobile-driving decisions, riskiness is a big deal. https://www.techbriefs.com/component/content/article/tb/stories/blog/48004
#BoundedRationality

Seven types of #ambiguity http://d.repec.org/n?u=RePEc:qld:uq2004:662&r=cbe
"…argues that the semantic interpretation of ambiguity to mean the absence of well-defined subjective probabilities is restrictive and unhelpful. Whereas the usual interpretation implies full #awareness of the state space, a correct understanding of ambiguity must be linked to #boundedAwareness."
#BoundedRationality

Overconfidence dictates who gets ‘top jobs’ and men benefit more than women
https://theconversation.com/overconfidence-dictates-who-gets-top-jobs-and-research-shows-men-benefit-more-than-women-200516
#Overconfidence may be a significant factor in the #GenderPayGap and career progression. Men are more likely to be overconfident, and consequently more likely to land top jobs.
…suggest employers should rethink how they recruit and promote people, focus on more frequent performance-based feedback, and to encourage women to apply for promotions sooner

#LaborMarkets #BoundedRationality

Frank Knight and #BehavioralEcononomics
https://doi.org/10.1080/09672567.2023.2197249
earlier #openaccess version https://ssrn.com/abstract=3923134
#BoundedRationality

A Primer on #DarkPatterns https://www.ballardspahr.com/insights/blogs/2023/04/podcast-primer-on-dark-patterns-special-guest-andrew-nigrinis
https://www.ballardspahr.com/-/jssmedia/Main/Podcast-Transcripts/CFM0614.pdf
#BoundedRationality #Regulation #ConsumerProtection

When should a decision be fast, or slow? https://longform.asmartbear.com/decisions-fast-slow/
#BoundedRationality
#decisionMaking