On the benefits of time-inconsistent preferences
| Autor: | Philipp Weinschenk |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Punishment (psychology) media_common.quotation_subject 05 social sciences Time-inconsistent preferences Work (electrical) 0502 economics and business Economics 050206 economic theory 050207 economics Positive economics Sophistication media_common |
| Zdroj: | Journal of Economic Behavior & Organization. 182:185-195 |
| ISSN: | 0167-2681 |
| DOI: | 10.1016/j.jebo.2020.11.035 |
| Popis: | Why are time-inconsistent preferences widespread among decision makers? This paper provides a possible explanation by showing that time-inconsistent preferences could be beneficial for decision makers that work together. Time-inconsistent preferences – which are usually blamed for having detrimental effects – can thus be advantageous for the functioning of societies. We further show that decision makers with time-inconsistent preferences are better off if they are naive rather than sophisticated concerning their inconsistency. The results do not depend on the construction of contracts or punishment schemes. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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