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The Shape of Temptation : Implications for the Economic Lives of the Poor

Banerjee, Abhijit V. - 2010

observed behaviors of the poor. Temptation goods are defined to be the set of goods that generate positive utility for the self …

Persistent link: https://www.econbiz.de/10013143763

Consumption : Beyond Certainty Equivalence

Blanchard, Olivier J.; Mankiw, N. Gregory - 2021

This paper discusses the recent research on the consumption function that has attempted to relax the assumption of certainty equivalence. While there remain many open questions, both theoretical and empirical, it is clear that the assumption of certainty equivalence can be misleading. Under more...

Persistent link: https://www.econbiz.de/10013230992

An Empirical Assessment of Alternative Models of Risky Decision Making

Baker, Joanna R. - 2010

In this paper, we assess the degree to which four of the most commonly used models of risky decision making can explain … enough to approximate Kahnenman and Tversky's prospect theory and that for certain parametric values will yield the expected … utility model, a subjective expected utility model and a probability-transform model. We find that the four models considered …

Persistent link: https://www.econbiz.de/10013135363

An Economic Model of Amniocentesis Choice

Fajnzylber, Eduardo - 2010

Medical practitioners typically utilize the following protocol when advising pregnant women about testing for the possibility of genetic disorders: Pregnant women over the age of 35 should be tested for Down syndrome and other genetic disorders; for younger women, such tests are discouraged...

Persistent link: https://www.econbiz.de/10013138773

Sticking with What (Barely) Worked

Lefgren, Lars - 2011

Outcome bias occurs when an evaluator considers ex-post outcomes when judging whether a choice was correct, ex-ante. We formalize this cognitive bias in a simple model of distorted Bayesian updating. We then examine strategy changes made by professional football coaches. We find they are more...

Persistent link: https://www.econbiz.de/10013119785

Conforming and Non-Conforming Peer Effects in Vaccination Decisions

Bodine-Baron, Elizabeth - 2013

Traditional economic models of vaccination assume that agents free-ride on the vaccination decision of others. These …

Persistent link: https://www.econbiz.de/10013074645

Measuring Intertemporal Preferences Using Response Times

Chabris, Christopher F. - 2010

We use two different approaches to measure intertemporal preferences. First we employ the classical method of inferring preferences from a series of choices (subjects choose between $X now or $Y in D days). Second we adopt the novel approach of inferring preferences using only response time data...

Persistent link: https://www.econbiz.de/10012758348

Optimal Defaults and Active Decisions

Carroll, Gabriel D - 2010

-inconsistency strengthen the normative appeal of the active-decision enrollment regime. However, financial illiteracy favors default enrollment … over active decision enrollment …

Persistent link: https://www.econbiz.de/10012762513

Bayesian Learning in Social Networks

Acemoglu, Daron - 2008

We study the perfect Bayesian equilibrium of a model of learning over a general social network. Each individual receives a signal about the underlying state of the world, observes the past actions of a stochastically-generated neighborhood of individuals, and chooses one of two possible actions....

Persistent link: https://www.econbiz.de/10012771797

Inducing Leaders to Take Risky Decisions : Dismissal, Tenure, and Term Limits

Aghion, Philippe - 2014

In this paper we analyze the problem of whether and/or when to replace a leader (agent) when no monetary rewards are available, and it is the leader's competence rather than effort that is being evaluated. The only decisions that the leader takes over time are whether to undertake risky but...

Persistent link: https://www.econbiz.de/10013050303