WORKING PAPERS

Ashamed to be Selfish, with David Dillenberger [January 2012]
Theoretical Economics, Vol 7, 99-124
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Dynamic Preference for Flexibility, with R. Vijay Krishna [May 2011]
under revision
Abstract: We consider a decision maker who has preference for flexibility when faced with dynamic decision situations that involve intertemporal tradeoffs, such as those in consumption savings problems, and axiomatize three recursive representations of choice over infinite horizon consumption problems. The first features uncertain consumption utilities that evolve according to a subjective process that is iid, in the second utilities follow a subjective Markov process, and the third allows the uncertainty about utilities to depend on exogenous states of the world that follow a subjective Markov process. The parameters of the representations, which are the (evolution of) beliefs over consumption utilities, and the discount factor, are uniquely identified from behavior. We characterize a natural notion of greater preference for flexibility in terms of dilations of beliefs.

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Supplementary Appendix

Conditional Preference for Flexibility: Eliciting Beliefs from Behavior [December 2011]
resubmitted
Abstract
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Subjective Learning, with David Dillenberger [March 2012]
submitted
Abstract
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Overeagerness [April 2008]
Abstract
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WORK IN PROGRESS

Preference for Flexibility and the Pricing of Assets, with R. Vijay Krishna [May 2012]
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Partitional Information, with David Dillenberger and Juan Lleras

Department of Economics, Duke University, Box 90097, Durham, NC 27708, USA | 919 660 1821 | p.sadowski (at) duke (dot) edu