EconStor >
Max-Planck-Institut für Ökonomik, Jena >
Jena Economic Research Papers, MPI für Ökonomik >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/36674
  
Title:Imperfect recall and time inconsistencies: An experimental test of the absentminded driver 'paradox' PDF Logo
Authors:Levati, Maria Vittoria
Uhl, Matthias
Zultan, Ro'i
Issue Date:2010
Series/Report no.:Jena economic research papers 2010,035
Abstract:Absentmindedness is a special case of imperfect recall which according to Piccione and Rubinstein (1997a) leads to time inconsistencies. Aumann, Hart and Perry (1997a) question their argument and show how dynamic inconsistencies can be resolved. The present paper explores this issue from a descriptive point of view by examining the behavior of absentminded individuals in a laboratory environment. Absentmindedness is manipulated in two ways. In one treatment, it is induced by cognitively overloading participants. In the other, it is imposed by randomly matching decisions with decision nodes in the information set. The results provide evidence for time inconsistencies in all treatments. We introduce a behavioral principal, which best explains the data.
Subjects:imperfect recall
absentmindedness
dynamic inconsistency
experiment
JEL:C72
C91
D03
D81
D83
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

Files in This Item:
File Description SizeFormat
630550735.pdf510.67 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/36674

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.