This paper analyzes if people use ignorance as an excuse to pursue immediate gratification, at the expense of future wellbeing, a behavior we label ‘strategic self-ignorance’. In a theoretical model we show that present-biased individuals benefit from choosing ignorance of the potentially...

This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary...