Bolton, Patrick and Faure-Grimaud, Antoine (2009) Thinking ahead: the decision problem. Review of Economic Studies, 76 (4). pp. 1205-1238. ISSN 0034-6527
Full text not available from this repository.Abstract
We propose a model of costly decision making based on time-costs of deliberating current and future decisions. We model an individual decision-maker's thinking process as a thought-experiment that takes time, and lets the decision maker ‘think ahead’ about future decision problems in yet unrealized states of nature. By formulating an intertemporal, state-contingent, planning problem which may involve costly deliberation in every state of nature, and by letting the decision maker deliberate ahead of the realization of a state, we attempt to capture the basic observation that individuals generally do not think through a complete action plan. Instead, individuals prioritize their thinking and leave deliberations on less important decisions to the time or event when they arise.
| Item Type: | Article |
|---|---|
| Official URL: | http://restud.oxfordjournals.org/ |
| Additional Information: | © 2009 OUP |
| Divisions: | Economics |
| Subjects: | B Philosophy. Psychology. Religion > B Philosophy (General) H Social Sciences > HB Economic Theory |
| Date Deposited: | 05 Apr 2011 09:45 |
| Last Modified: | 13 Sep 2024 22:40 |
| URI: | http://eprints.lse.ac.uk/id/eprint/30452 |
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