Search Results - subject:"time inconsistency."

Time Consistency in Regulatory Price Setting : An Australian Case Study

Ergas, Henry - 2009

Time consistency refers to situations where a policy that is optimal ex ante proves not to be optimal ex post, creating the risk of opportunistic policy reversals. While the threat of such reversals has received widespread attention in the theoretical literature, testing whether policy is indeed...

Persistent link: https://www.econbiz.de/10012764037

The Strategic Determinants of Tardy Entry : Is Timeliness Next to Godliness?

Berchicci, Luca - 2009

Previous research has considered extensively the causes and effects of market entry order and timing. It has neglected, however, the timeliness of such entry mdash; the degree to which a firm delivered a new product on the date it had set for its release. In this article, we begin to fill the...

Persistent link: https://www.econbiz.de/10012765796

Markets Versus Governments : Political Economy of Mechanisms

Acemoglu, Daron - 2009

We study the optimal Mirrlees taxation problem in a dynamic economy with idiosyncratic (productivity or preference) shocks. In contrast to the standard approach, which implicitly assumes that the mechanism is operated by a benevolent planner with full commitment power, we assume that any...

Persistent link: https://www.econbiz.de/10012767334

Gescheiterte Diäten, Wucherzinsen und Warteprämien : die neue ökonomische Theorie der Zeit

Beck, Hanno; Wüst, Kirsten - 2009

Persistent link: https://www.econbiz.de/10013438173

Now or Never : Environmental Protection under Hyperbolic Discounting

Winkler, Ralph - 2009

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/10014209214

Now or Never : Environmental Protection Under Hyperbolic Discounting

Winkler, Ralph - 2009

In this paper, we extend the well known result that hyperbolically discounting agents tend to postpone costs into the future. In a simple model we show that, without commitment to the ex ante optimal plan, no investment in environmental protection is undertaken over the whole time horizon, no...

Persistent link: https://www.econbiz.de/10014054280

Contingent Plans, Time Consistency and Paretian Rulers

Klein, Daniel B.; O'Flaherty, Brendan - 2009

government planning. Time inconsistency can be avoided if planning can be made sufficiently contingent …

Persistent link: https://www.econbiz.de/10014073876

Time Consistency and Related Concepts

Klein, Daniel B.; O'Flaherty, Brendan - 2009

We give rigorous game-theoretic meaning to the Stackelberg notions of time inconsistency and to the idea of commitment … being of value (or sequential irrationality). Time inconsistency treats desirable deviations only along the path, whereas … sequential irrationality treats deviations everywhere in the tree. We establish four relationships: time inconsistency implies …

Persistent link: https://www.econbiz.de/10014073915

Commitment and Time Consistency : A Game-Theoretic Discussion

Klein, Daniel B.; O'Flaherty, Brendan - 2009

The paper offers a game-theoretic framework for discussing commitment and time consistency. We show when a commitment (or just the appearance of one) is valuable, how valiable it is, and whether the commitment is time consistent. We formulate restrictions on the set of eligible commitments....

Persistent link: https://www.econbiz.de/10014073930

Escape dynamics and policy specification

Berardi, Michele - 2009

Persistent link: https://www.econbiz.de/10003828179