Seminario Theory-Experimental

Alex Christopher Sebald

University of Copenhagen

Sep-23

Seminar 3 – 14:30

Resumen

We experimentally investigate a prominent approach to model limited attention in decision making: Salience Theory, proposed by Bordalo et al. (2012b, 2013a). Decision makers’ attention is drawn to salient features of the environment, predicted by the Weber-Fechner law. They apply decision weights that distort actual probabilities in favor of salient consequences when making choices. Our experimental environment allows us to identify the choice predictions of this theory while controlling for many alternative theories of behavior. The experimental findings are broadly in line with Salience Theory.

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