Ahn, David S.
[VerfasserIn]
;
Iijima, Ryota
[Sonstige Person, Familie und Körperschaft];
Le Yaouanq, Yves
[Sonstige Person, Familie und Körperschaft];
Sarver, Todd
[Sonstige Person, Familie und Körperschaft]
Behavioral Characterizations of Naiveté for Time-Inconsistent Preferences
Erschienen in:Cowles Foundation Discussion Paper ; No. 2074R
Umfang:
1 Online-Ressource (58 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3290839
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 18, 2018 erstellt
Beschreibung:
We propose nonparametric definitions of absolute and comparative naivete. These definitions leverage ex-ante choice of menu to identify predictions of future behavior and ex-post (random) choices from menus to identify actual behavior. The main advantage of our definitions is their independence from any assumed functional form for the utility function representing behavior. An individual is sophisticated if she is indifferent ex-ante between retaining the option to choose from a menu ex-post or committing to her actual distribution of choices from that menu. She is naive if she prefers the flexibility in the menu, reflecting a mistaken belief that she will act more virtuously than she actually will. We propose two definitions of comparative naivete and explore the restrictions implied by our definitions for several prominent models of time inconsistency