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of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes in …
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another sense, it is concerned with bounded rationality as a means of the policy, and in still another sense, it is concerned … with bounded rationality as an obstacle to be removed by the policy, when the latter has a benevolent aim. The paper … behavioural economics, compared with that of classical rational choice theory, to account for successful interventions. After …
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We test the main predictions of the rational addiction model, reconceptualized as rational habit formation, in the context of handwashing. To track habit formation, we design soap dispensers with timed sensors. We test for rational habit formation by informing some households about a future...
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I derive a social planner's optimal information design in an environment with quasi-hyperbolic discounting consumers without commitment. Consumption induces instantaneous utility, but unknown delayed cost. Consumers may or may not acquire additional costless information on the cost parameter....
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"My goal in writing Microeconomics and Behavior was to produce an intellectually challenging text that would also be accessible and engaging to students. Microeconomics and Behavior develops the core analytical tools with patience and attention to detail. At the same time, it embeds these tools...
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