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Benkert, Jean-Michel - 2016

We study the bilateral trade problem put forward by Myerson and Satterthwaite (1983) under the assumption that agents are loss-averse, using the model developed by Kőszegi and Rabin (2006, 2007). We show that the endowment effect increases the sellers information rent, and that the attachment...

Persistent link: https://www.econbiz.de/10013005073

Nai͏̈ve and capricious : stumbling into the ring of self-control conflict

Myrseth, Kristian Ove R.; Wollbrant, Conny - 2011

We model self-control conflict as a stochastic struggle of an agent against a visceral influence, which impels the agent to act sub-optimally. The agent holds costly pre-commitment technology to avoid the conflict altogether and may decide whether to procure pre-commitment or to confront the...

Persistent link: https://www.econbiz.de/10009315478

Heuristics and public policy : decision making under bounded rationality

Dhami, Sanjit S.; Al-Nowaihi, Ali; Sunstein, Cass R. - 2018

How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality approach in economics do not hold? Do human beings optimize, or can they? Several decades of research have shown that people possess a toolkit of heuristics to make decisions under...

Persistent link: https://www.econbiz.de/10011926917

The logical consistency of time inconsistency : a theory of forward-looking behavior

Galperti, Simone; Strulovici, Bruno - 2013

necessarily time inconsistent. The paper explores the relationship between how a decision-maker discounts well-being and how he … rigorous way to think about welfare criteria in models with time inconsistent agents. …

Persistent link: https://www.econbiz.de/10010197485

Impatience, Anticipatory Feelings and Uncertainty : A Dynamic Experiment on Time Preferences

Casari, Marco - 2011

We study time preferences in a real-effort experiment with a one-month horizon. We report that two thirds of choices … suggest negative time preferences. Moreover, choice reversal over time is common even if temptation plays no role. We propose … and measure three distinct concepts of choice reversal over time to study time consistency. This evidence calls for an …

Persistent link: https://www.econbiz.de/10013132029