In this paper we show how imperfect memory can imply a preference for increasing payments. We model an agent making a decision regarding effort in two periods where the cost of effort is imperfectly known. Before making the first decision, the agent receives a signal related to the cost of...

The thesis comprises three essays on the reasons for and consequences of poorly-informed decision-making. Chapter 1 investigates active avoidance of information as a source of uninformed decision-making. Next to providing input for subsequent decisions information may trigger undesirable...

This paper extends Savage's subjective approach to probability and utility from decision problems under exogenous uncertainty to choice in strategic environments. Interactive uncertainty is modeled both explicitly, using hierarchies of preference relations, the analogue of beliefs hierarchies,...