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Temptation and Revealed Preference

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  • Jawwad Noor

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.
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Suggested Citation

  • Jawwad Noor, 2011. "Temptation and Revealed Preference," Econometrica, Econometric Society, vol. 79(2), pages 601-644, March.
    • Handle: RePEc:ecm:emetrp:v:79:y:2011:i:2:p:601-644
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    1. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 2009. "Temptation-Driven Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 937-971.
    2. Noor, Jawwad, 2007. "Commitment and self-control," Journal of Economic Theory, Elsevier, vol. 135(1), pages 1-34, July.
    3. Dekel, Eddie & Lipman, Barton L & Rustichini, Aldo, 2001. "Representing Preferences with a Unique Subjective State Space," Econometrica, Econometric Society, vol. 69(4), pages 891-934, July.
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