Showing 1 - 10 of 24
We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions?characterized by substantial overweighting of small...
Persistent link: https://www.econbiz.de/10010815596
Persistent link: https://www.econbiz.de/10010926172
Persistent link: https://www.econbiz.de/10005072852
We examine how principals should design incentives to induce time-inconsistent procrastinating agents to complete tasks efficiently. Delay is costly to the principal, but the agent faces stochastic costs of completing the task, and efficiency requires waiting when costs are high. If the...
Persistent link: https://www.econbiz.de/10005690699
Recent models of procrastination due to self-control problems assume that a procrastinator considers just one option and is unaware of her self-control problems. We develop a model where a person chooses from a menu of options and is partially aware of her self-control problems. This menu model...
Persistent link: https://www.econbiz.de/10005691044
People exaggerate the degree to which their future tastes will resemble their current tastes. We present evidence from a variety of domains which demonstrates the prevalence of such projection bias, develop a formal model of it, and use this model to demonstrate its importance in economic...
Persistent link: https://www.econbiz.de/10005814638
Persistent link: https://www.econbiz.de/10005758901
We investigate naive procrastination on projects with multiple stages. In addition to classic procrastination in starting projects, naive people might undertake costly effort to begin projects but then never finish. Procrastination is more likely when the costs of completing different stages are...
Persistent link: https://www.econbiz.de/10005135916
Persistent link: https://www.econbiz.de/10005145475
This article investigates patent protection for a long sequence of innovations where firms repeatedly supersede each other. Incentives for R&D can be insufficient if successful firms earn market profit only until competitors achieve something better. To correct this problem, patents must provide...
Persistent link: https://www.econbiz.de/10005146414