Randomly Evolving Tastes and Delayed Commitment
Publication
, Journal Article
Krishna, R; Sadowski, P
Published in: Economic Research Initiatives at Duke (ERID)
June 9, 2016
We consider a decision maker with randomly evolving tastes who faces dynamic decision situations that involve intertemporal tradeoffs, such as those in consumption savings problems. We axiomatize a recursive representation of choice that features uncertain consumption utilities, which evolve according to a subjective Markov process. The parameters of the representation, which are the subjective Markov process governing the evolution of utilities, and the discount factor, are uniquely identified from behavior. We relate the correlation of tastes over time and the desire to delay commitment to future consumption.
Duke Scholars
Published In
Economic Research Initiatives at Duke (ERID)
Publication Date
June 9, 2016
Issue
218
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 14 Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Krishna, R., & Sadowski, P. (2016). Randomly Evolving Tastes and Delayed Commitment. Economic Research Initiatives at Duke (ERID), (218).
Krishna, R., and P. Sadowski. “Randomly Evolving Tastes and Delayed Commitment.” Economic Research Initiatives at Duke (ERID), no. 218 (June 9, 2016).
Krishna R, Sadowski P. Randomly Evolving Tastes and Delayed Commitment. Economic Research Initiatives at Duke (ERID). 2016 Jun 9;(218).
Krishna, R., and P. Sadowski. “Randomly Evolving Tastes and Delayed Commitment.” Economic Research Initiatives at Duke (ERID), no. 218, June 2016.
Krishna R, Sadowski P. Randomly Evolving Tastes and Delayed Commitment. Economic Research Initiatives at Duke (ERID). 2016 Jun 9;(218).
Published In
Economic Research Initiatives at Duke (ERID)
Publication Date
June 9, 2016
Issue
218
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3802 Econometrics
- 3801 Applied economics
- 14 Economics