Working Papers

A new recursive utility representation where an individual optimally adjusts her risk attitude in response to the uncertainty that she faces. A leading example is the optimal selection of reference points. The key axiom is a dynamic form of aversion to mixtures of lotteries. The model can generate endogenous heterogeneity in equilibrium stock market participation, even for a population of identical consumers.
Replaces the working paper Optimal Reference Points and Anticipation, July 2014.

Behavioral Characterizations of Naiveté for Time-Inconsistent Preferences, with David Ahn, Ryota Iijima, and Yves Le Yaouanq, November 2016.

Behavioral definitions of naiveté and sophistication, and comparative measures of naiveté. Think Arrow-Pratt, but for naiveté instead of risk aversion. We show that our definitions yield tight parametric restrictions for the random Strotz model of time inconsistency, which includes hyperbolic, quasi-hyperbolic, and random quasi-hyperbolic discounting as special cases.
Replaces the working paper Comparative Measures of Naiveté, June 2015.

Behavioral definitions of naiveté that can be applied to the Gul-Pesendorfer model of temptation and self-control. Unlike the Strotzian model, the self-control representation is continuous and can be applied recursively. We use our approach to axiomatically characterize recursive naive quasi-hyperbolic discounting.


Hidden Actions and Preferences for Timing of Resolution of Uncertainty, with Haluk Ergin, Theoretical Economics, May 2015.

Preference for Flexibility and Random Choice, with David Ahn, Econometrica, January 2013. (Supplementary Appendix)

The Unique Minimal Dual Representation of a Convex Function, with Haluk Ergin, Journal of Mathematical Analysis and Applications, October 2010.

A Unique Costly Contemplation Representation, with Haluk Ergin, Econometrica, July 2010. (Supplementary Appendix)

Anticipating Regret: Why Fewer Options May Be Better, Econometrica, March 2008. (Lead Article)

Representing Preferences with a Unique Subjective State Space: A Corrigendum, with Eddie Dekel, Barton L. Lipman, and Aldo Rustichini, Econometrica, March 2007. (Supplementary Appendix)

Correlated Equilibrium in Evolutionary Models with Subpopulations, with Justin Lenzo, Games and Economic Behavior, August 2006.