Misallocation of Capital in a Model of Endogenous Financial Intermediation and Insurance

By Radim Bohácek, Hugo Rodr ´ iguez. 2011

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Choose to Lose: Health Plan Choices from a Menu with Dominated Option (2017, background): “…(Kőszegi and Rabin 2007; Sydnor 2010; Barseghyan et al. 2013), behavioral moral hazard (Baicker, Mullainathan, and Schwartzstein 2015), context dependence and informational salience (Bordalo, Gennaioli, and Shleifer 2012), and menu-based decision heuristics (Kamenica 2008; Ericson and Starc 2012).”
The Worst, the Best, Ignoring All the Rest: The Rank Effect and Trading Behavior (2015, background): “2) Average Extremeness: Models such as Bordalo, Gennaioli, and Shleifer (2012) predict a position becomes more salient as it becomes more extreme relative to a portfolio benchmark, such as the average holding return in the portfolio.”
Nudging in education (2018, background): “For example, people may place excessive weight on the most salient information or option when making decisions (Bordalo et al., 2012).”
Catering to Investors Through Security Design: Headline Rate and Complexity (2017, methodology): “Our empirical analysis relies on theoretical works on salience (Bordalo et al., 2012) and shrouding (Gabaix and Laibson, 2006).”