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Bray Theory Workshop

Wednesday, April 20, 2016
4:00pm to 5:00pm
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Baxter B125
Bounded Cognition in Intertemporal Choice
Jawwad Noor, Associate Professor, Department of Economics, Boston University,

Abstract

We model an agent who behaves impatiently due to limited "telescopic ability," which he can enhance nevertheless by exerting cognitive effort. The cognitive effort is chosen optimally at a cost that is drawn from a limited stock of cognitive resources. Behavioral foundations are provided by exploiting the idea that higher stakes provide an incentive for the exertion of higher cognitive effort, so that changes in the agent's impatience with respect to stake size can be viewed as revealing the workings of the underlying cognitive process.

For more information, please contact Barbara Estrada by phone at 626-395-4083 or by email at [email protected].