CREMER, Helmuth; DE DONDER, Philippe; MALDONADO, Dario; … - Center for Operations Research and Econometrics (CORE), … - 2008
We consider a two-period model. In the first period, individuals consume two goods: one is sinful and the other is not. The sin good brings pleasure but has a detrimental effect on second period health and individuals tend to underestimate this effect. In the second period, individuals can...