A Theory of Ex Post Rationalization

• Tác giả: Erik Eyster, Shengwu Li, Sarah Ridout
• Ngôn ngữ: eng
• Ký hiệu phân loại: 535.1 Theories
• Thông tin xuất bản: 2021
• Bộ sưu tập: Metadata
• ID: 167432

Tóm tắt

People rationalize their past choices, even those that were mistakes in hindsight. We propose a formal theory of this behavior. The theory predicts that sunk costs affect later choices. Its model primitives are identified by choice behavior and it yields tractable comparative statics.