Naive Resolute Or Sophisticated A Study Of Dynamic Decision Making

Dynamically inconsistent decision makers have to decide, implicitly or explicitly, what to do about their dynamic inconsistency. Economic theorists have identified three possible responses--to act naively (thus ignoring the dynamic inconsistency), to act resolutely (not letting their inconsistency affect their behaviour) or to act sophisticatedly (hence taking into account their inconsistency). We use data from a unique experiment (which observes both decisions and evaluations) in order to distinguish these three possibilities. We find that the majority of subjects are either naive or resolute (with slightly more being naive) but very few are sophisticated. These results have important implications for predicting the behaviour of people in dynamic situations.

Potentially dynamically-inconsistent individuals create particular problems for economics, as their behaviour depends upon whether and how they attempt to resolve their potential inconsistency. This paper reports on the results of a new experiment designed to help us distinguish between the different types that may exist. We classify people into four types: myopic, naive, resolute and sophisticated. We implement a new and simple experimental design in which subjects are asked to take two sequential decisions (interspersed by a random move by Nature) concerning the allocation of a given sum of money. The resulting data enables us to classify the subjects. We find that the majority are resolute, a significant minority are sophisticated and rather few are naive or myopic.

The insights offered in this book are intended to guarantee the reader a more successful career. It is written especially for managers and executives whose jobs require managing people successfully, but it is also written for anyone who must make decisions that involve other people. The authors discuss the decision styles and habits that people form and how to change decision-making habits where necessary. The models and techniques for decision making presented here have been used throughout the world in all kinds of businesses and government agencies. Decision style concepts can benefit anyone, from a new management trainee or MBA student to the CEO of a large firm.

The Psychology of Learning and Motivation, Volume 76, the latest release in this ongoing series, features empirical and theoretical contributions in cognitive and experimental psychology, ranging from classical and instrumental conditioning, to complex learning and problem-solving. Presents the latest information in the highly regarded Psychology of Learning and Motivation series Provides an essential reference for researchers and academics in cognitive science Contains information relevant to both applied concerns and basic research

Over the last several decades, questions about practical reason have come to occupy the center stage in ethics and metaethics. The Routledge Handbook of Practical Reason is an outstanding reference source to this exciting and distinctive subject area and is the first volume of its kind. Comprising thirty-six chapters by an international team of contributors, the Handbook provides a comprehensive overview of the field and is divided into five parts: Foundational Matters Practical Reason in the History of Philosophy Philosophy of Practical Reason as Action Theory and Moral Psychology Philosophy of Practical Reason as Theory of Practical Normativity The Philosophy of Practical Reason as the Theory of Practical Rationality The Handbook also includes two chapters by the late Derek Parfit, ‘Objectivism about Reasons’ and ‘Normative Non-Naturalism.’ The Routledge Handbook of Practical Reason is essential reading for philosophy students and researchers in metaethics, philosophy of action, action theory, ethics, and the history of philosophy.

The need to understand the theories and applications of economic and finance risk has been clear to everyone since the financial crisis, and this collection of original essays proffers broad, high-level explanations of risk and uncertainty. The economics of risk and uncertainty is unlike most branches of economics in spanning from the individual decision-maker to the market (and indeed, social decisions), and ranging from purely theoretical analysis through individual experimentation, empirical analysis, and applied and policy decisions. It also has close and sometimes conflicting relationships with theoretical and applied statistics, and psychology. The aim of this volume is to provide an overview of diverse aspects of this field, ranging from classical and foundational work through current developments. Presents coherent summaries of risk and uncertainty that inform major areas in economics and finance Divides coverage between theoretical, empirical, and experimental findings Makes the economics of risk and uncertainty accessible to scholars in fields outside economics

A distinguished group of philosophers, decision theorists, and psychologists offer new interdisciplinary perspectives on the rationality of self-control.