Philipp Sadowski CV

Journal Article Journal of Economic Theory · June 1, 2024 We enrich an evolutionary model with common and idiosyncratic uncertainty as in Robson (1996) by allowing for hidden actions (or phenotypic flexibility). In contexts where common uncertainty is ambiguous and idiosyncratic uncertainty is risky, the model ge ... Full text Cite

Subjective information choice processes

Journal Article Theoretical Economics · May 1, 2023 We propose a class of dynamic models that capture subjective (and, hence, unobservable) constraints on the amount of information a decision maker can acquire, pay attention to, or absorb via an information choice process (ICP). An ICP specifies the informa ... Full text Cite

Stable behavior and generalized partition

Journal Article Economic Theory · September 1, 2019 Behavior is stable if the ex ante ranking of two acts that differ only on some event I coincides with their ex post ranking upon learning I. We identify the largest class of information structures for which the behavior of a Bayesian expected utility maxim ... Full text Cite

Magical thinking: A representation result

Journal Article Theoretical Economics · May 1, 2017 This paper suggests a novel way to import the approach of axiomatic theories of individual choice into strategic settings and demonstrates the benefits of this approach. We propose both a tractable behavioral model as well as axioms applied to the behavior ... Full text Cite

Overeagerness

Journal Article Journal of Economic Behavior and Organization · November 1, 2016 We capture the impression that high types may send lower signals than low types in order not to appear too desperate. We require a noisy one-dimensional signal, where a very low signal being transmitted forces types to execute their outside option. The cen ... Full text Cite

Randomly Evolving Tastes and Delayed Commitment

Journal Article 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 ... Open Access Cite

Preferences with Taste Shock Representations: Price Volatility and the Liquidity Premium

Journal Article Economic Research Initiatives at Duke (ERID) · June 9, 2016 If price volatility is caused in some part by taste shocks, then it should be positively correlated with the liquidity premium. Our argument is based on Krishna and Sadowski (2014), who provide foundations for a representation of dynamic choice with taste ... Open Access Cite

Inertial Behavior and Generalized Partition

Journal Article Economic Research Initiatives at Duke (ERID) · May 1, 2016 We call behavior inertial if it does not react to the apparent arrival of relevant information. In a context where the precise information content of signals is subjective, we formulate an axiom that captures inertial behavior, and provide a representation ... Open Access Cite

Subjective Dynamic Information Constraints

Journal Article Economic Research Initiatives at Duke (ERID) · April 3, 2016 We axiomatize a new class of recursive dynamic models that capture subjective constraints on the amount of information a decision maker can obtain, pay attention to, or absorb, via a Markov Decision Process for Information Choice (MIC). An MIC is a subject ... Open Access Cite

Supplement to 'Subjective Dynamic Information Constraints'

Journal Article Economic Research Initiatives at Duke (ERID) · April 1, 2016 Supplement to "Subjective Dynamic Information Constraints" (http://ssrn.com/abstract=2774300). All references to definitions and results in this Supplement refer to Dillenberger, Krishna, and Sadowski (2016, henceforth DKS) unless otherwise specified. This ... Open Access Cite

The Role of Royalties in Resource Extraction Contracts

Journal Article Economic Research Initiatives at Duke (ERID) Working Paper · September 30, 2015 The manner in which governments charge mineral resource producers has been the subject of considerable debate. In particular, there is a continuing debate about whether royalties should be reduced or eliminated, the preferred alternative then being some va ... Open Access Cite

Dynamic Preference for Flexibility

Journal Article Econometrica · 2014 Full text Open Access Cite

A theory of subjective learning

Journal Article Journal of Economic Theory · January 1, 2014 We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst. We elicit subjective information directly from choice behavior by deriving two utility representations of preferences over ... Full text Open Access Cite

Contingent preference for flexibility: Eliciting beliefs from behavior

Journal Article Theoretical Economics · May 1, 2013 Following Kreps (1979), I consider a decision maker who is uncertain about her future taste. This uncertainty leaves the decision maker with a preference for flexibility: When choosing among menus that contain alternatives for future choice, she weakly pre ... Full text Cite

Generalized Partition and Subjective Filtration

Journal Article Economic Research Initiatives at Duke (ERID) · September 13, 2012 We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst, and hence should be identified from observed choice data. An information structure is objectively describable if signals c ... Cite

Ashamed to Be Selfish

Journal Article Economic Research Initiatives at Duke Working Paper · September 20, 2010 Cite