Revealing Naïveté and Sophistication from Procrastination and Preproperation
This paper proposes a novel way of distinguishing whether a person is naïve or sophisticated about her own dynamic inconsistency using only her task-completion behavior. It shows that adding an unused extra opportunity to complete a task can lead a naïve (but not a sophisticated) person to complete it later and can lead a sophisticated (but not a naïve) person to complete the task earlier. These results provide a framework for revealing preference and sophistication types from behavior in a general environment that includes that of O’Donoghue and Rabin (1999). (JEL D15, D91)
2017 ◽
Vol 6
(2)
◽
pp. 214
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