In this paper, the problem of inconsistent dynamic choice is discussed, as considered in the literature, both under certainty in the context of changing preferences, and under risk and uncertainty in the case of preference orderings which violate expected utility theory. The problem of...

In this paper we extend the model of Resolute Choice to a situation of interaction and compare it with the Sophisticated-subgame perfect equilibrium and the Myopic Choice models in terms of welfare implications. The framework adopted is a non-cooperative game in which two players with different...

There is a large theoretical literature in both economics and psychology on decision making under ambiguity (as distinct from risk) and many preference functionals proposed in this literature for describing behaviour in such contexts. However, the empirical literature is scarce and largely...

Dynamically inconsistent decision makers have to decide, implicitly or explicitly, what to do about their dynamic inconsistency. Economic theorists have identified three possible responses – to act naively (thus ignoring the dynamic inconsistency), to act resolutely (not letting their...