Self-fulfilling Mistakes: Characterisation and Welfare

• 成果类型: Article
• 署名作者: Dalton, Patricio S.; Ghosal, Sayantan
• 署名单位: University of Glasgow; Tilburg University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12409
• 发表日期: 2018
• 页码: 683-709
• 关键词: rational choice; revealed preference; endogenous tastes; loss aversion; DECISION; utility; equilibrium; BEHAVIOR; frames; myopia

摘要

This article incorporates self-fulfilling mistakes into an otherwise classical decision-making framework. A behavioural agent makes a mistake when he fails to internalise all the consequences of his actions on himself. We show that Sen's axioms and fully characterise choice data consistent with behavioural agents. These two axioms are weaker than Sen's axioms and that fully characterise rational agents. We offer a welfare benchmark that can be applied to existing behavioural economics models and show the conditions under which our welfare ranking can be used to infer welfare dominated (i.e. mistaken) choices using choice data alone.