Andrei Shleifer

Pedro Bordalo · Nicola Gennaioli · Giacomo Lanzani · Andrei Shleifer

Bordalo, Gennaioli, Lanzani, and Shleifer develop a cognitive theory of choice in which a decision maker's attention to the features of options is determined by her categorization of the current …

J. Bradford De Long · Andrei Shleifer · Lawrence H. Summers · Robert J. Waldmann

This paper builds a simple overlapping-generations model of an asset market with two types of traders -- "noise traders," who hold erroneous, randomly-varying beliefs about an asset's expected return, …

Pedro Bordalo · Nicola Gennaioli · Andrei Shleifer · Stephen J. Terry

This paper incorporates diagnostic expectations — beliefs that overweight the representativeness of recent data, formalized as $E_t^\theta(A_{t+1}) = E_t(A_{t+1}) + \theta[E_t(A_{t+1}) - …

Andrei Shleifer · Robert W. Vishny

Shleifer and Vishny argue that textbook arbitrage -- "simultaneous purchase and sale of the same...security in two different markets," requiring no capital and entailing no risk -- does not describe …