On the identification of changing tastes

• 成果类型: Article
• 署名作者: Mihm, Maximilian; Ozbek, Kemal
• 署名单位: New York University; New York University Abu Dhabi; University of St Andrews
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.04.014
• 发表日期: 2019
• 页码: 203-216
• 关键词: Changing tastes; Consistent planning; dynamic choice; Dominance relation

摘要

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. (C) 2019 Elsevier Inc. All rights reserved.