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Prediction, Inference, and Choice — NSF Award to Massachusetts Institute of Technology (MA, $272,750)

This research focuses on understanding how people make decisions and interact based on information. One part explores the long-run implications of people not fully accounting for the ways that their memory can be limited or imperfect, which can lead them to, for example, overestimate their abilities and/or neglect larg

Award titlePrediction, Inference, and Choice
Award ID2417162
AwardeeMassachusetts Institute of Technology
CityCAMBRIDGE
StateMA
Amount obligated$272,750
Principal investigatorDrew Fudenberg
ProgramEconomics
Start date09/01/2024
AbstractThis research focuses on understanding how people make decisions and interact based on information. One part explores the long-run implications of people not fully accounting for the ways that their memory can be limited or imperfect, which can lead them to, for example, overestimate their abilities and/or neglect large but infrequent losses. This work has important implications for such macroeconomic issues as why stocks tend to outperform bonds even after correcting for risk, and also helps ex
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