Salience

There is a new short paper by Pedro Bordalo, Nicola Gennaioli and Andrei Shleifer on "Salience and Asset Prices "  The abstract reads:
"We present a simple model of asset pricing in which payoff salience drives investors' demand for risky assets. The key implication is that extreme payoffs receive disproportionate weight in the market valuation of assets. The model accounts for several puzzles in finance in an intuitive way, including preference for assets with a chance of very high payoffs, an aggregate equity premium, and countercyclical variation in stock market returns."

They have a series of papers on salience, see

Pedro Bordalo, Nicola Gennaioli and Andrei Shleifer "Salience Theory of Choice Under Risk" , Quarterly Journal of Economics, August, 2012.

and more recently

Pedro Bordalo, Nicola Gennaioli and Andrei Shleifer"Salience and Consumer Choice", May, 2012.