Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version

5-2014

Publication Source

Games and Economic Behavior

Volume

85

Start Page

127

Last Page

158

DOI

10.1016/j.geb.2013.11.013

Abstract

This paper presents a model of choice based on imperfect memory and self-deception. I assume that people have preferences over their own attributes (e.g., skill, knowledge, or competence) and can manipulate their memories. The model provides a prior-dependent theory of regret aversion and allows for prior-dependent information attitudes. It implies that behavior will converge to the one predicted by expected utility theory after a choice has been faced a sufficiently large number of times.

Copyright/Permission Statement

© 2014. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

memory, self deception, behavioral economics

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Date Posted: 27 November 2017

This document has been peer reviewed.