Biases and Decision Impairments in Markets

Project summary

Project A04 considers biases in decision making that arise from deadlines, stress, cognitive load, complexity, and other “decision impairments”. Decision impairments can engender but also amplify or attenuate behavioral biases. Project A04 studies whether and which markets (e.g., asset markets, auctions and contests) are susceptible to specific biases in the presence of decision impairments, how aggregate market outcomes are affected, and for what environments there is no reason for concern.