Projects here begin with a puzzling observation about human behavior. For example, why do people buy lottery tickets and insurance at the same time? Why are they willing to spend much more when purchasing with a credit card, and why do many prefer debit cards over credit cards? Why do they succumb to addictive overconsumption? Why do citizens bother to vote in a referendum, when their vote is not likely to affect the result.
These puzzles are sought and exploited for theoretical leverage, for their ability to force a rethinking of some aspect of the rational model, usually leading to an alternative computational theory.
Key Publications
- Bodner, R. and D. Prelec. “Self-signaling in a neo-Calvinist model of everyday decision making,” in Psychology and Economics, Vol I. Brocas and J. Carillo (eds.), Oxford University Press, 2002.
- Mijovic-Prelec, D. and D. Prelec. “Self-deception as self-signaling: A model and experimental evidence.” Philosophical Transactions of the Royal Society B: Biology, 2010, 365, 227-240.
- McKay, R., Mijovic-Prelec, D. and D. Prelec. “Protesting too much: Self-deception and self-signaling.” Behavioral and Brain Sciences, 2011, 34, 34-3
- Prelec, D. and G. Loewenstein. “The Red and the Black: Mental accounting of savings and debt.” Marketing Science. January, 1998, 17, 4-28.
Other Publications
- Rahmandad, H., Denrell, J. and D. Prelec. What makes dynamic strategic problems difficult? Evidence from an experimental study. Strategic Management Journal, 2021, 42(5), 865-897.
- Prelec, D. “Choosing at the wrong rate: Lessons from the Harvard game.” In Sustainable Consumption – Multi-Disciplinary Perspectives: In Honour of Professor Sir Partha Dasgupta, Alistair Ulph (ed.), Oxford University Press, Oxford, 2014
- Prelec, D. “Decision Analysis from a neo-Calvinist point of view.” In Essays in Behavioural Public Policy, A. J. Oliver (ed.), Cambridge University Press, (2013).
- Bleichrodt, H., Kothyial, A., Prelec, D. and P. Wakker. “Compound Invariance Implies Prospect Theory for Simple Prospects,” Journal of Mathematical Psychology Volume 57, Issues 3–4, June–August 2013, Pages 68–77
- Pascual-Ezama, D., Prelec, D. and D. Dunfield. “Motivation, Money, Prestige and Cheats,” Journal of Economic Behavior and Organization (2013).
- D Pascual-Ezama, D Dunfield, BGG de Liaño, D Prelec – Peer effects in unethical behavior: standing or reputation? PloS one, 2015
- Prelec, D. “Consumer behavior and the future of consumer payments,” in Moving Money: The Future of Consumer Payment, R. E. Litan and M. N. Baily (eds.), New York and Washington D.C.: Brookings Foundation, 2009.
- Ariely, D., Kamenica, E., and D. Prelec. “Man’s search for meaning: The case of Legos.” Journal of Economic Behavior and Organization, 2008, 67(3), 671-677.
- Ebert, J. and D. Prelec. “The fragility of time: Time-insensitivity and valuation of the near and far future.” Management Science, 2007, 53, 1423-1438.
- Prelec, D. “Rebuilding the boat while staying afloat: The modeling challenge for behavioral economics.” Journal of Marketing Research, 2006, 43, 332-336.
- Ariely, D., Loewenstein, G., and D. Prelec. “Tom Sawyer and the construction of value.” Journal of Economic Behavior and Organization, 2006, 60, 1-10.
- Prelec, D. “Decreasing impatience: A criterion for non-stationary time preference and hyperbolic discounting,” Scandinavian Journal of Economics, 2004, 106, 511-532.
- Ariely, D., Loewenstein, G., and D. Prelec. “Coherent arbitrariness: Stable demand curves without stable preferences.” Quarterly Journal of Economics, 2003, 118, 73-105.
- Prelec, D. and R. Bodner. “Self-signaling and self-control,” Time and Decision, G. Loewenstein, D. Read, & R.F. Baumeister (eds.) Russell Sage Press, New York, 2003.
- Prelec, D., and D. Simester, “Always leave home without it: A further investigation of the credit card effect on willingness-to-pay,” Marketing Letters, 2001. 12, 5-12.
- Prelec, D. “The Probability Weighting Function,” Econometrica, 1998, 66, 497-527.
- Prelec, D., Wernerfelt, B., and F. Zettelmeyer. “The role of inference in context effects,” Journal of Consumer Research, June 1997.
- Loewenstein, G. and D. Prelec. “Anomalies in intertemporal choice: Evidence and an interpretation,” Quarterly Journal of Economics, 1992, 107, 573-598.
- Prelec, D. and G. Loewenstein. “The Red and the Black: Mental accounting of savings and debt.” Marketing Science. January, 1998, 17, 4-28.
- Prelec, D. “Decision Analysis from a neo-Calvinist point of view.” In Essays in Behavioural Public Policy, A. J. Oliver (ed.), Cambridge University Press, (in press).
- Ariely, D., Kamenica, E., and D. Prelec. “Man’s search for meaning: The case of Legos.” Journal of Economic Behavior and Organization, 2008, 67(3), 671-677.
- Ebert, J. and D. Prelec. “The fragility of time: Time-insensitivity and valuation of the near and far future.” Management Science, 2007, 53, 1423-1438.
- Prelec, D. “Compound Invariant Weighting Functions in Prospect Theory,” in Choices, Values, Frames, D. Kahneman and A. Tversky (eds). Cambridge: Cambridge University Press, 2001.
- Loewenstein, G., Prelec, D., and R. Weber. “What me worry? A Psychological Perspective on Economic Aspects of Retirement,” in H. Aaron (ed) Psychological Perspectives on Retirement. New York and Washington D.C.: Brookings Foundation and Russell Sage Foundation Press, 2000.
- Prelec, D., and G. Loewenstein. “Beyond time discounting,” Marketing Letters, 1997, 8, 97-108.
- Herrnstein, R.J., G. Loewenstein, D. Prelec, and W. Vaughan, Jr. “Utility maximization and melioration: Internalities in individual choice,” Journal of Behavioral Decision Making, 1993, 6, 149-185.
- Loewenstein, G. and D. Prelec. “Preferences over sequences of outcomes,” Psychological Review, 1993, 100, 91-108.
- Herrnstein, R.J., and D. Prelec. “Melioration,” in Choice Over Time, G. Loewenstein and J. Elster (eds.), New York: Russell Sage Press, 1992.
- Herrnstein, R.J., and D. Prelec. “A theory of addiction,” in Choice Over Time, G. Loewenstein and J. Elster (eds.), New York: Russell Sage Press, 1992.
- Prelec, D., and R. J. Herrnstein. “Preferences and Principles, Alternative Guidelines for Choice,” in Strategic Reflections on Human Behavior (R. Zeckhauser, editor), Cambridge, Mass.: MIT Press, 1991.
- Prelec, D., and G. Loewenstein. “Decision making over time and under uncertainty: A common approach,” Management Science, 770-786, 37, 1991.
- Herrnstein, R.J., and D. Prelec. “Melioration: A theory of distributed choice,” Journal of Economic Perspectives, 137-156, 5, 1991.
- Loewenstein, G. and D. Prelec. “Negative time preference,” American Economic Review: Papers and Proceedings, 347-352, 81, 1991.
- Prelec, D. “Values and principles: Some limitations on traditional economic analysis,” in Socioeconomics: Toward a New Synthesis, A. Etzioni and P. Lawrence d(Eds.), New York: M.E. Sharpe, 1991.
- Prelec, D. “A pseudo-endowment effect, and its implications for some recent non-expected utility models,” Journal of Risk and Uncertainty, 1990, 3, 247-259.
- Prelec, D. “The assumptions underlying the generalized matching law,” Journal of the Experimental Analysis of Behavior, 1984, 41, 101-107.
- Prelec, D. “The empirical claims of maximization theory: A reply to Rachlin, and to Kagel, Battalio, and Green.” Psychological Review. 1983, 90, 385-389.
- Prelec, D. “Matching, maximizing, and the hyperbolic reinforcement feedback function.” Psychological Review. 1982, 89, 189-231.
- Prelec, D. and R.J. Herrnstein. “Feedback functions for reinforcement: A paradigmatic experiment,” Animal Learning and Behavior, 1978, 6, 181-186.
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MIT Sloan Neuroeconomics Lab 