Research proves that when making reasonable bets on independent events, the choice of what to bet on depends solely on the ratio of odds, not on your personal risk tolerance.
Lab
The Fear of Losing vs. the Fear of Overpaying: How Risk Aversion Changes the Auction Game
Finance & Economics
Why do people overbid at some auctions, yet deliberately lowball their bids at others? It all comes down to the psychology of fear and the design of the game.
Lab
When You Only See Part of the Game: How Economists Guess the Rules From Others' Moves
Finance & Economics
A study on how to determine, from the individual actions of players, whether hidden coordination exists – and whether it can be exploited for profit.
A new study reveals that cryptocurrency markets defy the fundamental laws of equilibrium, and the culprits aren't errors in risk assessment, but rather more 'human' factors.
Lab
Does Artificial Intelligence Trust Its Eyes More Than Central Bank Statistics?
Finance & Economics
Research shows: language models form economic expectations just as irrationally as humans do, prioritizing personal experience over official data.
Lab
The Silent Treatment: How the Fear of Paying More Turns Us Into Strategists of Omission
Finance & Economics
A study exploring how our reluctance to pay more tomorrow forces us to stay silent about small losses today, creating an invisible economy of things left unsaid.
Analyzing how Europe distributes farm subsidies, economists have found: the choice between efficiency and stability is really the choice between gambling and prudence.
Lab
Why the Labor Market Doesn't Follow the Textbooks: The Illusions We Mistook for Laws
Finance & Economics
A sweeping analysis of labor market research reveals that our long-held beliefs about the minimum wage, the informal economy, and employer power are dramatically flawed.
Lab
Why Artificial Intelligence Learns From Our Mistakes: The Paradox of Inverse Reinforcement Learning
Finance & Economics
How machines decipher our hidden motives by observing behavior – from robotics to economics, where algorithms become archaeologists of human desire.