Showing 1 - 10 of 511
model implies that existing empirical tests of sophistication in intertemporal choice can reach incorrect conclusions …
Persistent link: https://www.econbiz.de/10015045460
-hyperbolic discounting. When agents recognize others' naivete, as strongly suggested by empirical evidence, they revise consumption paths …, correctly anticipating prices in a resulting sliding equilibrium (perfect foresight). When agents are unaware of others' naivete …
Persistent link: https://www.econbiz.de/10013353458
We study a model of task completion with the opportunity to learn about own self-control problems over time. While the agent is initially uncertain about her future self-control, in each period she can choose to learn about it by paying a non-negative learning cost and spending one period. If...
Persistent link: https://www.econbiz.de/10012141898
This project analyzes how a principal can motivate an agent to conserve rather than exploit a depletable resource. This dynamic problem is relevant for tropical deforestation as well as for other environmental problems. It is shown that the smaller is the agent's discount factor (e.g., because...
Persistent link: https://www.econbiz.de/10014377507
This paper explores how a principal with time-inconsistent preferences invests optimally in technology or capital. If the current principal prefers her future self to save more, she can increase current investments complementary to future savings and decrease investments in the strategic...
Persistent link: https://www.econbiz.de/10010328803
This paper argues that, to be forward-looking in a logically consistent sense, a decision maker must take account of his overall well-being, not just his instantaneous utility, in all future periods. However, such a decision-maker is necessarily time inconsistent. The paper explores the...
Persistent link: https://www.econbiz.de/10010352845
Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of …
Persistent link: https://www.econbiz.de/10010480816
In this paper we study the optimal forest conservation policy by a hyperbolically discounting society. Society comprises a series of non-overlapping imperfectly altruistic generations each represented by its own government. Under uncertainty about future pay-offs we determine, as solution of an...
Persistent link: https://www.econbiz.de/10010279473
Only one trip planner is needed for a group of friends to enjoy a pleasant trip and only one country is needed to coordinate on international talks that can be beneficial for all participating countries. We study a dynamic volunteering dilemma game in which two players choose to volunteer or...
Persistent link: https://www.econbiz.de/10015410518
This paper has a dual purpose. First, I present a new modeling of partial naivete, and apply this to the analysis of … his current preferences may persist in the future. The behavioral implications of such partial naivete differ from those …
Persistent link: https://www.econbiz.de/10010284258