Hidden actions and preferences for timing of resolution of uncertainty

• 成果类型: Article
• 署名作者: Ergin, Haluk; Sarver, Todd
• 署名单位: University of California System; University of California Berkeley; Duke University
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE1340
• 发表日期: 2015-05-01
• 页码: 489-541
• 关键词: Temporal preferences; preference for flexibility; hidden action; subjective uncertainty

摘要

We study preferences for timing of resolution of objective uncertainty in a menu-choice model with two stages of information arrival. We characterize a general class of utility representations called hidden action representations, which interpret an intrinsic preference for timing of resolution of uncertainty as if an unobservable action is taken between the resolution of the two periods of information arrival. These representations permit a richer class of preferences for timing than was possible in the model of [Kreps and Porteus, 1978] by incorporating a preference for flexibility. Our model contains several special cases where this hidden action can be given a novel economic interpretation.