Prof. Dražen Prelec

Dražen Prelec

Digital Equipment Corp. LGO Professor of Management Science
Professor of Management, Management Science and Economics
Sloan School of Management
Department of Economics
Department of Brain and Cognitive Sciences
MIT, Massachusetts Institute of Technology (USA)

Personal page: if.cfm?in_spseqno=106&co_list=F

List of publications (pdf)

Education: A.B. in Applied Mathematics at Harvard College; Ph.D. in Experimental Psychology at Harvard University.

Research interests: Psychology, behavioral economics and neuroscience; Decision making: rules, policies, principles, self-control, self-inference; Self-signalling, self-deception; Expert judgment: design of group scoring rules for training experts and eliciting their judgments; Time preference; Mental accounting, savings and debt attitudes, credit cards; Addictive overconsumption; Risk: probability weighing, psychophysics of small probabilities.

Present positions: Team, the MIT Virtual Customer Initiative ( ● Digital Marketing Strategy Group, the MIT Center for Digital Business ( ● Faculty, MIT Center for Collective Intelligence ( ● Advisory Board, Micronotes (

Awards and acknowledgments: Leon Levy Member of the Institute for Advanced Study at Princeton ● Fellow, John Simon Guggenheim Memorial Foundation, 2005 ( ● Fellow, Center for Advanced Study in the Behavioral Sciences, Stanford, 1997-1998 ● Junior Fellow, Harvard Society of Fellows, 1982-1985.

Web resources on Professor Prelec: Readings packet: The information pump (; ● Lecture: Emerging perspectives in decision making (with G. Huber, J. Lynch, T. Ho), AMA Doctoral Consortium, 2003 (slides: ● MIT OpenCourseWare, 2002: Listening to the customer (; Strategic marketing measurement ( ● Prelec discusses consumer confidence at Pbs Online Newshour, 2001 ( ● Spectrum MIT, 1999, The psychology of spending ( ● Videolectures: Prelec’s Lecture: Neuroeconomics (video:


(2010) Danica Mijovic-Prelec, Drazen Prelec. Self-deception as self-signalling: A model and experimental evidence. Philosophical Transaction of the Royal Society, 365, 227-240 (

(2009) Yonatan Loewenstein, Dražen Prelec, H. Sebastian Seung. Operant matching as a Nash equilibrium of an intertemporal game. Neural Computation, Vol. 21, No. 10 (October), 2755-2773 (
(2008) Ariely, D., Kamenica, E., and D. Prelec. Man’s search for meaning: The case of Legos. Journal of Economic Behavior and Organization (

(2008) Brian Knutson, G. Elliott Wimmer, Scott Rick, Nick G. Hollon, Dražen Prelec, George Loewenstein. Neural antecedents of the endowment effect. Neuron, 58(5) pp. 814 – 822 (,_Issue_5,_Pages_651-822

(2007) Knutson, B., Rick, S., Wimmer, E., Prelec, D., Loewenstein, G., Neural predictors of purchases, Neuron, Vol. 53, 147-156 (,_Issue_1,_Pages_1-156

(2007) 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 (

(2005) Camerer, C., Loewenstein, G., and Prelec, D., Neuroeconomics: How neuroscience can inform economics. Journal of Economic Literature, 43, 5-60 (

(2005) Amir, O., Ariely, D.,Cooke, A., Dunning, D., Epley, N., Gneezy, U., Koszegi, B., Lichtenstein, D., Mazar, N., Mullainathan, S., Prelec, D., Shafir, E., Silva, J., Psychology, behavioral economics, and public policy, Marketing Letters, 16(3-4), 443-454 (

(2004) Camerer, C.F., Loewenstein, G., Prelec, D., Neuroeconomics: Why economics needs brains. Scandinavian Journal of Economics, 106, 555-579 (

(2004) Prelec, D., Decreasing impatience: A criterion for non-stationary time preference and hyperbolic discounting. Scandinavian Journal of Economics, 106, 511-532 (

(2004) Prelec, D., A Bayesian truth serum for subjective data. Science, 306, 462-466 (

(2003) Ariely, D., Loewenstein, G., and Prelec, D., Coherent arbitrariness: Stable demand curves without stable preferences. Quarterly Journal of Economics, 118, 73-106 (

(2001) Prelec, D., and Simester, D., Always leave home without it: A further investigation of the credit-card effect on willingness to pay. Marketing Letters, 12:1, 5-12 (

(1998) Prelec, D. and Loewenstein, G., The Red and the Black: Mental accounting of savings and debt. Marketing Science, 17, 4-28 (

(1997) Prelec, D., and Loewenstein, G., Beyond time discounting. Marketing Letters, 8, 97-108 (

(1993) Loewenstein, G. and Prelec, D., Preferences over sequences of outcomes. Psychological Review, 100, 91-108 (

(1993) Herrnstein, R.J., Loewenstein, G., Prelec, D. and Vaughan, W. Jr., Utility maximization and melioration: Internalities in individual choice. Journal of Behavioral Decision Making, 6, 149-185 (

(1992) Loewenstein, G. and Prelec, D., Anomalies in intertemporal choice: Evidence and an interpretation. Quarterly Journal of Economics, 107, 573-598 (

(1991) Prelec, D., and Loewenstein, G., Decision making over time and under uncertainty: A common approach. Management Science, 770-786, 37 (

(1991) Loewenstein, G. and Prelec, D., Negative time preference. American Economic Review:, 347-352, 81 (

(1984) Prelec, D., The assumptions underlying the generalized matching law. Journal of the Experimental Analysis of Behavior, 41, 101-107 (

Working papers and drafts:

(2008) Rebecca Weiss, Drazen Prelec. An interactive tool to optimally aggregate crowd wisdom (Working paper:

(2007) Yonathan Loewenstein, Drazen Prelec, H. Sebastian Seung. A “matchimizing” theory of consumption (

(2006) Drazen Prelec, H. Sebastian Seung. An algorithm that finds truth even if most people are wrong (

(2005) Ariely, D., Loewenstein, G., and Prelec, D., Tom Sawyer and the construction of value. Working paper 05-10, Federal Reserve bank of Boston (

(2001) Ronit Bodner, Drazen Prelec. Self-signaling and diagnostic utility in everyday decision making (


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