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We model a decision maker who anticipates being tempted but is also uncertain about what is normatively best. Our model is an extended version of Gul and Pesendorfer's (2001) with three time periods: in the ex ante period, the agent chooses a set of menus; in the interim period, she chooses a...
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We describe and characterize the family of asymmetric parametric division rules for the adjudication of conflicting claims on a divisible homogeneous good. As part of the characterization, we present two novel axioms which restrict how a division rule indirectly allocates between different...
Persistent link: https://www.econbiz.de/10010753432
We impose the axiom Independence of Irrelevant Alternatives on division rules for the conflicting claims problem. With the addition of Consistency and Resource Monotonicity, this characterizes a family of rules which can be described in three different but intuitive ways. First, a rule is...
Persistent link: https://www.econbiz.de/10011076672
We model a decision maker who anticipates being tempted but is also uncertain about what is normatively best. Our model is an extended version of Gul and Pesendorfer's (2001) with three time periods: in the ex ante period, the agent chooses a set of menus; in the interim period, she chooses a...
Persistent link: https://www.econbiz.de/10012010023
We use a preference-over-menus framework to model a decision maker who is affected by multiple temptations. Our two main axioms on preference-exclusion and inclusion-identify when the agent would want to restrict his choice set and when he would want to expand his choice set. An agent who is...
Persistent link: https://www.econbiz.de/10008456359
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We present a theoretical framework which explains the optimizing behavior of individuals who are exposed to many latent stimuli but prone to experience only the most salient one. We show that individuals with such preferences may find it optimal to engage in seemingly dysfunctional behavior such...
Persistent link: https://www.econbiz.de/10012480713