Naive, resolute or sophisticated? A study of dynamic decision making

John D. Hey, Gianna Lotito

Risultato della ricerca: Contributo su rivistaArticolo in rivistapeer review

Abstract

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 inconsistency affect their behaviour) or to act sophisticatedly (hence taking into account their inconsistency). We use data from a unique experiment (which observes both decisions and evaluations) in order to distinguish these three possibilities. We find that the majority of subjects are either naive or resolute (with slightly more being naive) but very few are sophisticated. These results have important implications for predicting the behaviour of people in dynamic situations.

Lingua originaleInglese
pagine (da-a)1-25
Numero di pagine25
RivistaJournal of Risk and Uncertainty
Volume38
Numero di pubblicazione1
DOI
Stato di pubblicazionePubblicato - feb 2009
Pubblicato esternamente

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