Project summary
Intertemporal decisions on education, health, and finances depend on individuals’ preferences as well as on their subjective expectations. Beliefs and preferences are heterogeneous across individuals and frequently systematically biased, leading to suboptimal decisions. Using representative surveys and laboratory experiments, project A01 develops elicitation tasks that measure both beliefs and preferences such as risk aversion at the same time and investigates their joint impact. The project also explores the interaction of beliefs and preferences with respect to health risks, environmental behavior, attitudes towards redistribution, and the impact of social norms.