Arbeitspapier | Working paper
A note on the welfare of a sophisticated time-inconsistent decision-maker
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 individual (Laibson [1994] and O'Donoghue and Rabin [1999] provide prominent instances of such miscoordination). Studying the standard solution concept for this case -Strotz-Pollak equilibrium- in general decision problems with perfect information, I establish two results: first, for finite-horizon problems without indifference, essential consistency (Hammond [1976]) is sufficient for choice to be Pareto-optimal. Second, if the decision problem satisfies a certain history-independence property, whenever an equilibrium outcome fails to be Pareto-optimal, it is Pareto-dominated by another equilibrium outcome, leading to an existence result for a Pareto-optimal solution. (author's abstract)
- Umfang
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Seite(n): 21
- Sprache
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Englisch
- Anmerkungen
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Status: Veröffentlichungsversion; begutachtet
- Erschienen in
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Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten (SP II 2015-201)
- Thema
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Psychologie
Wirtschaft
Sozialpsychologie
Allgemeines, spezielle Theorien und Schulen, Methoden, Entwicklung und Geschichte der Wirtschaftswissenschaften
Zeit
Konsistenz
Gleichgewicht
Wohlbefinden
Verhalten
Entscheidung
- Ereignis
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Geistige Schöpfung
- (wer)
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Kodritsch, Sebastian
- Ereignis
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Veröffentlichung
- (wer)
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Wissenschaftszentrum Berlin für Sozialforschung gGmbH
- (wo)
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Deutschland, Berlin
- (wann)
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2015
- Handle
- Letzte Aktualisierung
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21.06.2024, 16:27 MESZ
Datenpartner
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kodritsch, Sebastian
- Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Entstanden
- 2015
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