Search Results - subject:"Dynamic inconsistency"

Dynamic Inconsistency in Choice and Different Models of Dynamic Choice – A Review

Lotito, Gianna - 2023

. This implies considering dynamic choice in a general framework. The discussion on dynamic inconsistency under certainty … context of choice under risk and uncertainty, dynamic inconsistency occurs when preference orderings over risky or uncertain … theoretical debate on the justification of expected utility as a normative theory, in which the dynamic inconsistency argument and …

Persistent link: https://www.econbiz.de/10014256214

Dynamic Inconsistency in Risky Choice : Evidence from the Lab and Field

Heimer, Rawley; Iliewa, Zwetelina; Imas, Alex; Weber, Martin - 2023

We document a robust dynamic inconsistency in risky choice. Using a unique brokerage dataset and a series of …

Persistent link: https://www.econbiz.de/10014257706

Dollarization as an effective commitment device : the case of Argentina

Ocampo, Emilio - 2023

One of the main reasons to dollarize an emerging market economy is to eliminate high, persistent, and volatile inflation. To be effective, dollarization must generate sufficient credibility, which in turn depends critically on whether its expected probability of reversal is low. Argentina once...

Persistent link: https://www.econbiz.de/10014230321

Time-inconsistent bargaining and cross-commitments

Utset, Manuel A. - In: Games 14 (2023) 3, pp. 1-21

The paper studies bargaining games involving players with present-biased preferences. The paper shows that the relative timing of bargaining rewards and bargaining costs will determine whether the players' present-bias will affect bargaining outcomes. In cases where players agree to a bargain in...

Persistent link: https://www.econbiz.de/10014422534

Relationship between an Inconsistent Degree of Financial Literacy and Inconsistent Decision-Making in Intertemporal Choices

Ventre, Viviana; Martino, Roberta; Muñoz Torrecillas, … - 2023

Intertemporal choice refers to the decision-making process involving trade-offs between rewards available at different points in time (smaller sooner versus larger later rewards). In this process, empirical evidence often deviates from the exponential preferences predicted by the normative...

Persistent link: https://www.econbiz.de/10014349189

Monetary Policy Without Commitment

Afrouzi, Hassan; Halac, Marina; Rogoff, Kenneth S.; … - 2023

This paper studies the implications of central bank credibility for long-run inflation and inflation dynamics. We introduce central bank lack of commitment into a standard non-linear New Keynesian economy with sticky-price monopolistically competitive firms. Inflation is driven by the...

Persistent link: https://www.econbiz.de/10014350743

The salience of informed risk: an experimental analysis

Santorsola, Marco; Caferra, Rocco; Morone, Andrea - In: Journal of Economic Studies 51 (2023) 9, pp. 21-35

varying intensity, the authors also considered dynamic inconsistency, cognitive ability and questionnaire-based financial risk … light on the importance of considering dynamic inconsistency in addition to risk awareness and aversion. Findings The … the potential influence of dynamic inconsistency on decision-making, adding further value to the literature on this topic …

Persistent link: https://www.econbiz.de/10015350128

Why do we procrastinate? : present bias and optimism

Breig, Zachary; Gibson, Matthew; Shrader, Jeffrey - 2020

of dynamic inconsistency, but they are consistent with optimism. These findings offer an explanation for low takeup of …

Persistent link: https://www.econbiz.de/10012193799

Time Consistent Infrastructure Investments : Optimal Flood Protection Policies in Spatial Equilibrium

Ouazad, Amine; Kahn, Matthew E. - National Bureau of Economic Research - 2025

Place-based investments can have unintended general equilibrium effects and face challenges of time inconsistency. This paper simulates the granular impact of alternative spatial and temporal designs of such investments, using Quantitative Spatial Models where the strategy of the policymaker is...

Persistent link: https://www.econbiz.de/10015194978

Optimal investment strategy for α-robust utility maximization problem

Yang, Zhou; Li, Danping; Zeng, Yan; Liu, Guanting - In: Mathematics of operations research 50 (2025) 1, pp. 606-632

Persistent link: https://www.econbiz.de/10015211757