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On the identification of changing tastes

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ICT_May_10_2019.pdf (478.1Kb)
Date
07/2019
Author
Mihm, Max
Ozbek, Kemal
Keywords
Changing tastes
Consistent planning
Dynamic choice
Dominance relation
HB Economic Theory
T-NDAS
BDC
R2C
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Abstract
In a dynamic choice environment, an agent’s tastes may change over time (e.g., due to present bias, habit formation, or reference dependence). These changes are often systematic with important welfare and policy implications. In this paper, we propose a framework to identify an agent’s anticipation about how her preferences change over time and provide a heuristic measure that can inform the design of economic policies. In particular, our method resolves identification issues arising in the previous literature by using the intuitive idea that, while tastes can change, rankings are often monotone with respect to a suitable dominance relation.
Citation
Mihm , M & Ozbek , K 2019 , ' On the identification of changing tastes ' , Games and Economic Behavior , vol. 116 , pp. 203-216 . https://doi.org/10.1016/j.geb.2019.04.014
Publication
Games and Economic Behavior
Status
Peer reviewed
DOI
https://doi.org/10.1016/j.geb.2019.04.014
ISSN
0899-8256
Type
Journal article
Rights
Copyright © 2019, Elsevier Inc. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1016/j.geb.2019.04.014
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  • University of St Andrews Research
URI
http://hdl.handle.net/10023/21067

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