Temptation and Revealed Preference

Jawwad Noor

No WP2010-040, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics

Abstract: Gul and Pesendorfer [9] model the static behavior of an agent who ranks menus prior to the experience of temptation. This paper models the dy- namic behavior of an agent whose ranking of menus itself is subject to temptation. The representation for the agent?s dynamically inconsistent choice behavior views him as possessing a dynamically consistent view of what choices he "should" make (a normative preference) and being tempted by menus that contain tempting alternatives. Foundations for the model re- quire a departure from Gul and Pesendorfer's idea that temptation creates a preference for commitment. Instead, it is hypothesized that distancing an agent from the consequences of his choices separates normative preference and temptation.

Pages: 53 pages
Date: 2010-01
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Journal Article: Temptation and Revealed Preference (2011)
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