Behavioral Finance

June 2018

Conventional economic models assume that investors confronted with risky choices maximize expected utility; yet in the real world, people are prone to making predictable errors.

June 2018

Understanding the prevalence, diversity and predictive power of behavioral factors—deviations from classical assumptions about consumer choice—is critical for theory, research and policy.

June 2018

Conventional economic models assume that investors confronted with risky choices maximize expected utility; yet in the real world, people are prone to making predictable errors.

June 2018

As older Americans tap into their retirement funds, they often face a choice between receiving a smaller, immediate payout and a larger, future payout. How does memory affect these “intertemporal” choices?

February 2018

Procrastination keeps employees at the default contribution rate, but only in “opt-out” plans.

February 2018

Procrastination keeps employees at the default contribution rate, but only in “opt-out” plans.

June 2016

More than 30 million Americans are projected to retire in the next decade – and most have not saved nearly enough for retirement. Moreover, almost half of all Social Security recipients claim benefits at the earliest possible age (62), which can greatly reduce their total lifetime benefits.

May 2016

More than 30 million Americans are projected to retire in the next decade – and most have not saved nearly enough for retirement. Moreover, almost half of all Social Security recipients claim benefits at the earliest possible age (62), which can greatly reduce their total lifetime benefits.

December 2015

As employer-sponsored savings vehicles, like 401(k)s, become a major source of retirement income for millions of Americans, personal biases can have an outsized impact on retirement security.