Showing 1 - 10 of 19
This paper analyzes an agent¡¯s option exercise decision under uncertainty. The agent decides whether and when to do an irreversible activity. He is tempted by immediate gratification and suffers from self-control problems. This paper adopts the Gul and Pensendorfer self- control utility...
Persistent link: https://www.econbiz.de/10005135114
. While temptation is commonly understood to give rise to a demand for commitment, it is shown that `temptation by future … preference reversals supports temptation by future consumption, and suggests that it may not be restricted to short time horizons. …
Persistent link: https://www.econbiz.de/10005413267
Choice may be determined both by a consideration of one's welfare (normative preference) and by desires (temptation … as a primitive and hypothesize that temptation creates a preference for commitment. This paper argues that temptation may … it requires us to observe behavior in the absence of temptation. An alternative approach to providing foundations is …
Persistent link: https://www.econbiz.de/10005413275
Economic theories of rational addiction aim to describe consumer behavior in the presence of habit-forming goods. We provide a biological foundation for this body of work by formally specifying conditions under which it is optimal to form a habit. We demonstrate the empirical validity of our...
Persistent link: https://www.econbiz.de/10005135026
In the light of first-hand data from a Beninese urban household survey in Cotonou, we investigate several motives aiming to explain participation in Rotating Savings and Credit ASsociations. We provide empirical findings which indicate that individuals use their participation in a rosca as a...
Persistent link: https://www.econbiz.de/10005118704
Current analysis addresses an apparently critical issue of wealth circulation in the society. In the form of three persons game, we put the welfare-related burden on taxpayers. The Negotiator No.1 stands up for citizens’ legal and moral right to social services. The Negotiator No.2 proceeds...
Persistent link: https://www.econbiz.de/10005550930
Current analysis addresses an apparently critical issue of wealth circulation in the society. In the form of three persons game, we put the welfare-related burden on taxpayers. The Negotiator No.1 stands up for citizens’ legal and moral right to social services. The Negotiator No.2 proceeds...
Persistent link: https://www.econbiz.de/10005550964
voting body may affect the balance of power between the original members even if their number of votes and the decision rule … majority voting rules, and we measure the voting power of a player by his average payoff in the experiment. By comparing voting … power across voting bodies of varying size, we find empirical support for the paradox of new members. Our results also allow …
Persistent link: https://www.econbiz.de/10005556685
of support E gives to H. Third, I address the implications for the definition of special majority voting, a procedure … special majority voting in terms of a required proportion of the jury is epistemically questionable, and that the classical …
Persistent link: https://www.econbiz.de/10005560962
insurance (UI) scheme and the voting behaviour on unemployment policy reforms. In a first step, the optimal defined benefit and … following a policy change are analysed. Accounting for this transition has an important influence on the voting outcome. …
Persistent link: https://www.econbiz.de/10005125042