TY - JOUR
AU - Faure-Grimaud, Antoine
AB - We propose a model of costly decision making based on time-costs of deliberating current and future decisions. We model an individual decision-maker's thinking process as a thought-experiment that takes time, and lets the decision maker ‘think ahead’ about future decision problems in yet unrealized states of nature. By formulating an intertemporal, state-contingent, planning problem which may involve costly deliberation in every state of nature, and by letting the decision maker deliberate ahead of the realization of a state, we attempt to capture the basic observation that individuals generally do not think through a complete action plan. Instead, individuals prioritize their thinking and leave deliberations on less important decisions to the time or event when they arise.
TI - Thinking Ahead: The Decision Problem
JF - The Review of Economic Studies
DO - 10.1111/j.1467-937X.2009.00554.x
DA - 2009-10-01
UR - https://www.deepdyve.com/lp/oxford-university-press/thinking-ahead-the-decision-problem-5ul1EVQUUD
SP - 1205
EP - 1238
VL - 76
IS - 4
DP - DeepDyve
ER -