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Procrastination, partial naivete, and behavioral welfare analysis

Asheim, Geir B. - 2007

This paper has a dual purpose. First, I present a new modeling of partial naivete, and apply this to the analysis of procrastination. The decision maker is assumed to have stationary behavior and to be partially naive in the sense of perceiving that his current preferences may persist in the...

Persistent link: https://www.econbiz.de/10010284258

Self-delusion in the pursuit of happiness

Sommervoll, Dag Einar - 2010

The paper explores how repeated revisions of consumption plans increase long-run utility. If agents value present anticipations of future consumption, some revisions may be viewed as a benign form of self-delusion. We consider a minimal generalization of the Samuelson discounted utility model to...

Persistent link: https://www.econbiz.de/10011968374

Comparative Risk Aversion: A Formal Approach with Applications to Saving Behaviors

Bommier, Antoine; Chassagnon, Arnold; Le Grand, François - 2010

allows us to establish new general results on the impact of risk aversion on savings behaviors. In particular, we show that … risk aversion enhances precautionary savings, clarifying the link that exists between the notions of prudence and risk …

Persistent link: https://www.econbiz.de/10011753198

Risk and Savings: a Taxonomy

Gunning, Jan Willem - 2008

-period model how the effect of risk on savings depends not only on preferences but also on the type of risk. …

Persistent link: https://www.econbiz.de/10010326046

Tying Odysseus to the Mast: Evidence from a Commitment Savings Product in the Philippines

Ashraf, Nava; Karlan, Dean S.; Yin, Wesley - 2005

We designed a commitment savings product for a Philippine bank and implemented it using a randomized control … methodology. The savings product was intended for individuals who want to commit now to restrict access to their savings, and who … for commitment, were indeed significantly more likely to open the commitment savings account. After twelve months, average …

Persistent link: https://www.econbiz.de/10010369236

A note on the welfare of a sophisticated time-inconsistent decision-maker

Kodritsch, Sebastian - 2015

I examine the circumstances under which a sophisticated time-inconsistent decisionmaker (i) will not or (ii) need not severely miscoordinate her behavior across time, in the sense of following a course of action which fails to be Pareto-optimal for the sequence of temporal selves of the...

Persistent link: https://www.econbiz.de/10010478796

Transboundary Externalities and Property Rights: An International River Pollution Model

van der Laan, Gerard; Moes, Nigel - 2012

In this paper we study international river pollution problems. We introduce a model in which the agents (countries) located along a river derive benefit while causing pollution, but also incur environmental costs of experiencing pollution from all upstream agents. We find that total pollution in...

Persistent link: https://www.econbiz.de/10010326271

Shame and theory-of-mind predicts rule-following behavior

Ridinger, Garret - In: Games 11 (2020) 3, pp. 1-17

This paper examines the idea that adherence to social rules is in part driven by moral emotions and the ability to recognize the emotions of others. Moral emotions like shame and guilt produce negative feelings when social rules are transgressed. The ability to recognize and understand the...

Persistent link: https://www.econbiz.de/10013200034

Value of Life, Value of Time, and Constant Relative Risk Aversion Utility.

Feldman, Allan M. - 1998

This paper develops two straightforward value of life models; one is a probabilistic value of life model and the second is a determinstic value of time model. Simplifying assumptions allow both models to be solved analytically. Constant relative risk aversion utility functions are used, and both...

Persistent link: https://www.econbiz.de/10010420250

Present-Focused Preferences and Sin Goods Consumption at the Extensive and Intensive Margins

Kalamov, Zarko; Runkel, Marco - 2020

This paper analyzes sin goods consumption when individuals exhibit present-focused preferences. It considers three types of present focus: present-bias with varying degrees of naiveté, Gul-Pesendorfer preferences, and a dual-self approach. We investigate the incentives to deviate from healthy...

Persistent link: https://www.econbiz.de/10012208002