Jehiel, Philippe; Lilico, Andrew - In: CESifo Economic Studies 56 (2010) 2, pp. 141-164
This article considers an intertemporal decision problem in which the agent has limited foresight. It offers an interpretation of why people may smoke when they are young--as a result of having a short horizon of foresight--and refrain from smoking when they get older--as a result of having...