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
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Supplementary Appendix

Conditional Preference for Flexibility: Eliciting Beliefs from Behavior [December 2011]
resubmitted
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Subjective Learning, with David Dillenberger [March 2012]
submitted
Abstract: We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst. We derive a sequence of representations of preferences over menus of acts that capture the individual's uncertainty about his future beliefs. Using the most general representation, we characterize a notion of "more preference for flexibility" via a subjective analogue of Blackwell's (1951, 1953) comparisons of experiments. A more refined representation allows us to compare individuals who expect to learn differently, even if they do not agree on their prior beliefs. The class of information structures that can support such a representation generalizes the notion of a partition of the state space. We apply the model to study an individual who anticipates gradual resolution of uncertainty over time. Both the filtration (the timing of information arrival with the sequence of partitions it induces) and prior beliefs are uniquely identified.

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Overeagerness [April 2008]
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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