Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150098
Title: 
Authors: 
Epstein, Larry G.
Kopylov, Igor
Year of Publication: 
2007
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 2 [Year:] 2007 [Issue:] 3 [Pages:] 232-259
Abstract: 
Individuals often lose confidence in their prospects as they approach the `moment of truth.' An axiomatic model of such individuals is provided. The model adapts and extends (by relaxing the Independence axiom) Gul and Pesendorfer's model of temptation and self-control to capture an individual who changes her beliefs so as to become more pessimistic as payoff time approaches. In a variation of the model, the individual becomes more optimistic at an ex post stage in order to feel better about her available options.
Subjects: 
Pessimism
optimism
cold feet
temptation
self-control
moment of truth
temporal proximity
confidence
JEL: 
D80
D81
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/2.5
Document Type: 
Article

Files in This Item:
File
Size





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