Naiveté and sophistication in dynamic inconsistency |
| |
| Institution: | 1. Humanities, Arts, and Social Sciences, Singapore University of Technology and Design, Singapore;2. Department of Quantitative Economics, Maastricht University, The Netherlands;3. Department of Economics, Maastricht University, The Netherlands;1. Department of Mathematics and Applied Mathematics, Changzhou Institute of Technology, Changzhou 213032, China;2. School of Economics and Management, Southeast University, Nanjing 211189, China;1. Leeds University Business School, The University of Leeds, UK;2. Sapienza University of Rome, Department of Developmental and Social Psychology, Italy;3. Sapienza University of Rome, Department of Dynamic Clinical Psychology, Italy |
| |
| Abstract: | This paper introduces a general framework for dealing with dynamic inconsistency in the context of Markov decision problems. It decouples and examines concepts that are often entwined in the literature. It distinguishes between the decision maker and her various temporal selves, and between the beliefs and intentions of the selves. The creation of a unified formalism to deal with dynamic inconsistency allows for the introduction of a hybrid decision maker, who is naive sometimes, sophisticated at others. Such a hybrid decision maker can be used to model situations where type determination is endogenous. Interestingly, the analysis of hybrid types indicates that self-deception can be optimal. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
