This paper discusses the discounted utility (DU) model: its historical development,
underlying assumptions, and “anomalies”-the empirical regularities that are inconsistent with …

This chapter surveys work in behavioral public economics, emphasizing the normative
implications of non-standard decision making for the design of welfare-improving and/or …

In this paper, which is a continuation of the discrete-time paper (Björk and Murgoci in
Finance Stoch. 18: 545–592, 2004), we study a class of continuous-time stochastic control …

Even if there is an agreed-upon, fixed social objective function and policymakers know the
timing and magnitude of the effects of their actions, discretionary policy, namely, the …

Hyperbolic discount functions induce dynamically inconsistent preferences, implying a
motive for consumers to constrain their own future choices. This paper analyzes the …

We examine self-control problems—modeled as time-inconsistent, present-biased
preferences—in a model where a person must do an activity exactly once. We emphasize …

The concept of self-control is incorporated in a theory of individual intertemporal choice by
modeling the individual as an organization. The individual at a point in time is assumed to …

BECAUSE PSYCHOLOGY systemati-cally explores human judgment, behavior, and well-
being, it can teach us important facts about how humans differ from the way tlhey are …

We consider dynamic choice behavior under conditions of uncertainty, with emphasis on the
timing of the resolution of uncertainty. Choice behavior in which an individual distinguishes …

Trust is central to all transactions and yet economists rarely discuss the notion. 1 It is treated
rather as background environment, present whenever called upon, a sort of ever-ready …