Now showing items 1-13 of 13

    • A Strategic Model of Magical Thinking: Axioms and Analysis 

      Sadowski, Philipp; Daley, Brendan (Economic Research Initiatives at Duke (ERID) Working Paper, 2014-09-26)
      This paper seeks to make two contributions. First, we propose and analyze a tractable model of strategic play in which players behave as if their expectations about their opponents' behavior vary with their own choices. ...
    • A theory of subjective learning 

      Dillenberger, D; Lleras, JS; Sadowski, Philipp; Takeoka, N (Journal of Economic Theory, 2014-01-01)
      We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst. We elicit subjective information directly from choice behavior by deriving two utility ...
    • A Theory of Subjective Learning 

      Dillenberger, D; Lleras, J; Sadowski, Philipp; Takeoka, N (Economic Research Initiatives at Duke (ERID), 2012-08-31)
      We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst. We derive two utility representations of preferences over menus of acts that capture the ...
    • Dynamic preference for flexibility 

      Krishna, RV; Sadowski, Philipp (Econometrica, 2014-01-01)
      We consider a decision maker who faces dynamic decision situations that involve intertemporal trade-offs, as in consumption-savings problems, and who experiences taste shocks that are transient contingent on the state of ...
    • Foundations for Cooperation in the Prisoners’ Dilemma 

      Daley, Brendan; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID) Working Paper, 2014-05-07)
      We provide axiomatic foundations for a simple model of play in prisoners' dilemma games. The model accommodates cooperation and suggests that players behave as if their expectations about their opponents' behavior vary with ...
    • Generalized Partition and Subjective Filtration 

      Dillenberger, D; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2012-09-13)
      We study an individual who faces a dynamic decision problem in which the process of information arrival is unobserved by the analyst, and hence should be identified from observed choice data. An information structure is ...
    • Inertial Behavior and Generalized Partition 

      Dillenberger, D; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2016-05-01)
      We call behavior inertial if it does not react to the apparent arrival of relevant information. In a context where the precise information content of signals is subjective, we formulate an axiom that captures inertial behavior, ...
    • Preferences with Taste Shock Representations: Price Volatility and the Liquidity Premium 

      Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2016-06-09)
      If price volatility is caused in some part by taste shocks, then it should be positively correlated with the liquidity premium. Our argument is based on Krishna and Sadowski (2014), who provide foundations for a representation ...
    • Randomly Evolving Tastes and Delayed Commitment 

      Krishna, R; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2016-06-09)
      We consider a decision maker with randomly evolving tastes who faces dynamic decision situations that involve intertemporal tradeoffs, such as those in consumption savings problems. We axiomatize a recursive representation ...
    • Subjective Dynamic Information Constraints 

      Dillenberger, D; Krishna, R; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2016-04-03)
      We axiomatize a new class of recursive dynamic models that capture subjective constraints on the amount of information a decision maker can obtain, pay attention to, or absorb, via a Markov Decision Process for Information ...
    • Supplement to 'Subjective Dynamic Information Constraints' 

      Dillenberger, D; Krishna, R; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID), 2016-04-01)
      Supplement to "Subjective Dynamic Information Constraints" (http://ssrn.com/abstract=2774300). All references to definitions and results in this Supplement refer to Dillenberger, Krishna, and Sadowski (2016, henceforth DKS) ...
    • Supplement to a Strategic Model of Magical Thinking: Axioms and Analysis 

      Sadowski, Philipp; Daley, Brendan (Economic Research Initiatives at Duke (ERID) Working Paper, 2014-09-26)
      We establish that in the Prisoners' Dilemma, the model of Daley and Sadowski (2014) is logically distinct from three models that employ well-known forms of other-regarding preferences: altruism (Ledyard, 1995; Levine, 1998), ...
    • Supplement to: 'Foundations for Cooperation in the Prisoners’ Dilemma' 

      Daley, Brendan; Sadowski, Philipp (Economic Research Initiatives at Duke (ERID) Working Paper, 2014-05-07)
      We establish that in the Prisoners’ Dilemma, the model of Daley and Sadowski (2014) is logically distinct from three models that employ well-known forms of other regarding preferences: altruism (Ledyard, 1995; Levine, 1998), ...