On average young people "undersave" whereas old people "oversave" with respect to the rational expectations model of life-cycle consumption and savings. According to numerous studies on subjective survival beliefs, young people also "underestimate" whereas old people "overestimate" their...

We construct and solve a dynamically inconsistent Choquet expected utility life-cycle model for naive and sophisticated agents, respectively. Pollak (1968) shows that the realized saving behavior of naive and sophisticated agents be- comes identical for a logarithmic period-utility function. As...

Based on a cognitive notion of neo-additive capacities reflecting likelihood insensitivity with respect to survival chances, we construct a Choquet Bayesian learning model over the life-cycle that generates a motivational notion of neo-additive survival beliefs expressing ambiguity attitudes. We...