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Le Yaouanq, Yves
(2015)
Anticipating Preference Reversal.
TSE Working Paper, n. 15-585, Toulouse
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Abstract
This paper studies the consistency between a decision-maker's choices over menus in a first period and inside menus at a later date. The main result shows that the comparison of commitment decisions and actual subsequent choices reveals whether future taste contingencies are correctly anticipated: a sophisticated individual chooses exactly the right commitment options, whereas a naive decision-maker overlooks some profitable opportunities. The paper provides absolute and comparative measures of naivete and shows under which conditions pessimistic behavior can be attributed to the presence of self-control costs. Finally, I implement an experimental protocol based on the theoretical analysis and find substantial evidence of naivete at the individual level.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | June 2015 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Self-control, Naivete, Temptation, Stochastic choice, Random Strotz |
| JEL Classification: | C91 - Laboratory, Individual Behavior D81 - Criteria for Decision-Making under Risk and Uncertainty D90 - General |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 21 Sep 2015 13:08 |
| Last Modified: | 02 Apr 2021 15:49 |
| OAI Identifier: | oai:tse-fr.eu:29461 |
| URI: | https://publications.ut-capitole.fr/id/eprint/18408 |
