Dynamically Consistent Menu Preferences

Youichiro Higashi (), Kazuya Hyogo () and Gil Riella ()
Additional contact information
Youichiro Higashi: Faculty of Economics, Okayama University
Kazuya Hyogo: Faculty of Economics, Ryukoku University
Gil Riella: School of Public Policy and Government, Getulio Vargas Foundation

No 1047, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: We provide a unified analysis of dynamically consistent menu preferences that may exhibit preference for flexibility, preference for commitment, or both. Our work generalizes prior results, which investigated this problem for an agent who always exhibits preference for flexibility. By using two types of consistency conditions, we characterize an agent with a subjective state space who reacts to information about her subjective states in a dynamically consistent way. We apply our reuslts to the multiple temptations and the anticipating regret models.

Keywords: Dynamic consistency; Preference for flexibility; Preference for commitment; Bayesian updating; Subjective state space (search for similar items in EconPapers)
JEL-codes: D11 D81 D91 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-12
New Economics Papers: this item is included in nep-mic and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.kier.kyoto-u.ac.jp/DP/DP1047.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:1047

Access Statistics for this paper

More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Makoto Watanabe ().