Showing 1 - 10 of 92
We study a model of task completion with the opportunity to learn about own self-control problems over time. While the agent is initially uncertain about her future self-control, in each period she can choose to learn about it by paying a non-negative learning cost and spending one period. If...
Persistent link: https://www.econbiz.de/10012141898
ambiguity aversion. This characterization extends to regret-based models as well. As an application of our general result, we …
Persistent link: https://www.econbiz.de/10010266275
We study a dynamic model of monopolistic provision of commitment devices to sophisticated, Strotzian decision makers. We allow for unobservable heterogeneity at the contracting stage in the agents' preferences for commitment vs. flexibility. The first-best contracts under complete information...
Persistent link: https://www.econbiz.de/10010282919
How can naivete about present bias persist despite experience? To answer this question, our experiment investigates … results suggest that persistent naivete cannot be explained by a fundamental inferential bias. At the same time, we find that …
Persistent link: https://www.econbiz.de/10011985283
Unfavorable news are often delivered under the disguise of vagueness. Our theory-driven laboratory experiment investigates this strategic use of vagueness in voluntary disclosure and asks whether there is scope for policy to improve information transmission. We find that vagueness is profitably...
Persistent link: https://www.econbiz.de/10013197544
We study the interplay between quality provision and consumer search in a search market where firms may design products of inferior quality to promote them to naive consumers who fail to fully understand product characteristics. We derive an equilibrium in which both superior and inferior...
Persistent link: https://www.econbiz.de/10014467783
Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers … in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities …. theoretically, these strategies result in anticipated and experienced regret, which systematically affect search behavior and …
Persistent link: https://www.econbiz.de/10014467769
The standard framework for analyzing games with incomplete information models players as if they have an infinite depth of reasoning, which is not always consistent with experimental evidence. This paper generalizes the type spaces of Harsanyi (1967-1968) so that players can have a finite depth...
Persistent link: https://www.econbiz.de/10010352842
Carlsson and van Damme (1993), a small grain of naiveté suffices to overturn the classical uniqueness results in that …
Persistent link: https://www.econbiz.de/10010352849
so on, even if this so-called grain of naiveté is arbitrarily small. More precisely, we show that even if there is almost …
Persistent link: https://www.econbiz.de/10010352864