Search Results - subject:"time inconsistency."

Barro-Gordon Revisited : Reputational Equilibria in a New Keynesian Model

Totzek, Alexander - 2010

The aim of this paper is to solve the inconsistency problem a la Barro and Gordon within a New Keynesian model and to derive time-consistent (stable) interest rate rules of Taylor-type. We find a multiplicity of stable rules. In contrast to the Kydland/Prescott-Barro/Gordon approach,...

Persistent link: https://www.econbiz.de/10013145307

Product strategies under durability, lock-in and assortment considerations

Gilbert, Stephen M. (contributor) - 2009

temptation to reduce durable prices over time, thereby mitigating the classic time inconsistency problem. On the other hand, lock … demonstrates the trade-off between time inconsistency and hold-up, and derives insights about the conditions under which a lock …-in strategy can be effective. I further analyze the trade-off between time inconsistency and hold-up associated with lock-in in …

Persistent link: https://www.econbiz.de/10009429319

Essays on Addiction, Myopia, and Inconsistency

Yoon, SangHo - 2009

Chapter 1: The standard theory of intertemporal choice provides a simple but elegantway to analyze how an individual consumes over time. Addiction, however, is documentedas one of numerous anomalies that the standard theory fails to explain. The modelsof habit-forming and compulsive consumptions...

Persistent link: https://www.econbiz.de/10009458905

Commitment to self-rewards

Koch, Alexander K.; Nafziger, Julia - 2009

Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended as tools for overcoming self-control problems. However, it seems puzzling why self-rewards can work: the prospect of a reward has a motivating force only if the threat of...

Persistent link: https://www.econbiz.de/10010271233

Motivational goal bracketing

Koch, Alexander K.; Nafziger, Julia - 2009

It is a puzzle why people often evaluate consequences of choices separately (narrow bracketing) rather than jointly (broad bracketing). We study the hypothesis that a present-biased individual, who faces two tasks, may bracket his goals narrowly for motivational reasons. Goals motivate because...

Persistent link: https://www.econbiz.de/10010271317

Now or Never: Environmental Protection under Hyperbolic Discounting

Winkler, Ralph - In: Economics: The Open-Access, Open-Assessment E-Journal 3 (2009) 2009-12, pp. 1-22

inconsistency of their preferences. As a consequence, awareness of the time-inconsistency problem poses at best a short run remedy … where all agents prefer further investments, yet no agent invests. This holds no matter whether agents are aware of the time …

Persistent link: https://www.econbiz.de/10010298631

Procrastination, Self-Imposed Deadlines and Other Commitment Devices

Hyndman, Kyle; Bisin, Alberto - Southern Methodist University, Department of Economics - 2009

In this paper we model a decision maker who must exert costly effort to complete a single task by a fixed deadline. Effort costs evolve stochastically in continuous time. The decision maker will then optimally wait to exert effort until costs are less than a given threshold, the solution to an...

Persistent link: https://www.econbiz.de/10004980199

Commitment to Self-Rewards

Koch, Alexander K.; Nafziger, Julia - Institute for the Study of Labor (IZA) - 2009

Self-administered rewards are ubiquitous. They serve as incentives for personal accomplish¬ments and are widely recommended as tools for overcoming self-control problems. However, it seems puzzling why self-rewards can work: the prospect of a reward has a motivating force only if the threat of...

Persistent link: https://www.econbiz.de/10004999154

Why Do Politicians Implement Central Bank Independence Reforms?

Daunfeldt, Sven-Olov; Hellström, Jörgen; Landström, Mats - Ratioinstitutet - 2009

This paper is a first empirical attempt to investigate why politicians around the world have chosen to give up power to independent central banks, thereby reducing their ability to fine-tune the economy. A new data-set covering 132 countries, of which 89 countries had implemented such reforms,...

Persistent link: https://www.econbiz.de/10008506818

Two Essays on Central Bank Independence Reforms

Landström, Mats - Institutionen för Nationalekonomi, Umeå Universitet - 2009

This thesis consists of two empirically oriented papers on Central Bank Independence (CBI) Reforms. Paper [1] is an investigation of why politicians around the world have chosen to give up power to independent central banks, thereby reducing their ability to control the economy. A new data-set...

Persistent link: https://www.econbiz.de/10008480548