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We study an intertemporal consumption and portfolio choice problem under Knightian uncertainty in which agent … plans. We obtain explicit solutions in a stationary setting in which the financial market has different risk premia for …
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Consumers may purchase durable goods on the basis of short-term "temptation," as well as their long-term interests. I adapt Gul and Pesendorfer's (2001) representation of self-control preferences to a market for durable goods. Consumers' temptation will increase profit, and can ameliorate a...
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We provide evidence for heterogeneous consumer preferences for product quality and game outcome uncertainty (GOU) in …-shape that is postulated by the uncertainty of outcome hypothesis; the largest cluster is comprised of teams with fans whose …
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This work studies the impact of uncertainty on an agent's decision-making process in an interdependent preference … when there is uncertainty about the peer's consumption level, then the inequity averse DM increases her consumption level …
Persistent link: https://www.econbiz.de/10012935985