This article explains the emergence of an unique equilibrium resolution as the result of a compromise between two selves with different preferences. The stronger this difference is, the more generous the resolution gets. This result is in contrast to predictions of other models in which sinful...

The notion of choice inconsistency is widely spread in the literature on behavioral economics. Several approaches were used to account for the observation that people reverse their choices over time. This paper aims to explain the formation of resolutions regarded as internal self-binding...

We study learning by privately informed forward-looking agents in a simple repeated-action setting of social learning. Under a symmetric signal structure, forward-looking agents behave myopically for any degrees of patience. Myopic equilibrium is unique in the class of symmetric threshold...

Robo-advisors are digital platforms that provide automated investment strategies and offer solutions in three key areas: (1) access to and rebalancing of passive and rule-based investment strategies, (2) cost-efficient implementation of a diversified asset allocation, and (3) behavioral biases....

Absentmindedness is a special case of imperfect recall which according to Piccione and Rubinstein (1997a) leads to time inconsistencies. Aumann, Hart and Perry (1997a) question their argument and show how dynamic inconsistencies can be resolved. The present paper explores this issue from a...

Ethics is a field in which the gap between words and actions looms large. Game theory and the empirical methods it inspires look at behavior instead of the lip service people sometimes pay to norms. We believe that this special issue comprises several illustrations of the fruitful application of...