Fudenberg, Drew; Levine, David K.; Maniadis, Zacharias - Department of Economics, Harvard University - 2014
We derive a simplified version of the model of Fudenberg and Levine, 2006 and Fudenberg and Levine, 2011 and show how this approximate model is useful in explaining choice under risk. We show that in the simple case of three outcomes, the model can generate indifference curves that “fan...