This article extends Bergsonian welfare analysis to an environment of uncertainty where preferences are not expected utility and may even be state-inconsistent. Given state-inconsistent preferences, the familiar notion of ex ante efficiency is also state-inconsistent. Other efficiency and...

A simple dynamic model helps explain why risk-pooling purchasing arrangements evolved for health, disability, and term life insurance but not for property, automobile, or homeowners' insurance, and why whole-life policies typify life insurance purchased on an individual basis. We show that...

Two dimensions of learning are explored in a repeated prisoners dilemma experiment. Subjects update their perceptions of the true model of their opponents' behavior. Subjects also update their beliefs about the opponents' likely future behavior, conditional on the true model. Both forms of...