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A note on the welfare of a sophisticated time-inconsistent decision-maker

Kodritsch, Sebastian - 2015

I examine the circumstances under which a sophisticated time-inconsistent decisionmaker (i) will not or (ii) need not severely miscoordinate her behavior across time, in the sense of following a course of action which fails to be Pareto-optimal for the sequence of temporal selves of the...

Persistent link: https://www.econbiz.de/10010478990

Revealed Notions of Distributive Justice I – Theory

Becker, Nicole - 2013

We provide a framework to decompose preferences into a notion of distributive justice and a selfishness part and to recover individual notions of distributive justice from data collected in appropriately designed experiments. "Dictator games" with varying transfer rates used in Andreoni and...

Persistent link: https://www.econbiz.de/10013073250

Nudging and Phishing : A Theory of Behavioral Welfare Economics

Jimenez-Gomez, David - 2018

Nudges, which are interventions that do not restrict choice, have become widespread in policy applications. I develop a general and tractable framework to analyze the welfare implications of nudges. In this framework, individuals suffer from internalities (their utility when choosing is...

Persistent link: https://www.econbiz.de/10012911341

Vilfredo Pareto's Theory of Action : An Alternative to Behavioral Economics

Candela, Rosolino - 2018

In recent years the term behavioral economics has arisen in consequence of the growing effort of a significant set of economists to import psychological methods and findings into economics. This body of work issues strong challenges to the use economists have made of rationality in economics....

Persistent link: https://www.econbiz.de/10012935518

Individual Welfare Analysis for Collective Households

Cherchye, L. - 2017

We propose novel tools for the analysis of individual welfare on the basis of aggregate household demand behavior. The method assumes a collective model of household consumption with the public and private nature of goods specified by the empirical analyst. A main distinguishing feature of our...

Persistent link: https://www.econbiz.de/10012941952

The Nonconcavity of Money-Metric Utility : A New Formulation and Proof

Khan, M. Ali - 2016

We offer a new, succinct proof that the money metric utility is concave for any preference relation representable by a concave function if and only if the indirect utility is affine in wealth. The proof exploits the existence of a least concave representation established in Debreu (1976), a...

Persistent link: https://www.econbiz.de/10012978560

Nudges and Welfare : Optimal Behavioural Policy with Decision Costs

Chesterley, Nicholas - 2015

The complexity of the modern world imposes significant cognitive and material costs on consumers. This paper models decision costs to better describe and understand the effects of behavioural policy, and finds that, similar to traditional economic policy, behavioural policies can create welfare...

Persistent link: https://www.econbiz.de/10013027871

Homothetic preferences revealed

Heufer, Jan; Hjertstrand, Per - 2017

We propose a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects' preferences and to choose appropriate functional forms for parametric analysis. It can also be used...

Persistent link: https://www.econbiz.de/10011773009

Homothetic preferences revealed

Heufer, Jan; Hjertstrand, Per - 2017

Persistent link: https://www.econbiz.de/10011754165

Choice, Rationality and Welfare Measurement

Green, Jerry; Hojman, Daniel - 2007

economic theory of revealed preference, our method can be used whether or not the observed choices are rational. Paralleling … the standard theory we present a model for choice such that the observations arise "as if" they were the result of a …. As in revealed preference theory, these simultaneously held preferences are inferred from the choice data and we use them …

Persistent link: https://www.econbiz.de/10014222674