nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2006‒03‒18
two papers chosen by
Erik Thomson
University of Chicago

  1. Robert Aumann's Game and Economic Theory By Sergiu Hart
  2. Choice and Normative Preference By Jawwad Noor

  1. By: Sergiu Hart
    Abstract: n overview of the landmark contributions of Robert J. Aumann, winner of the 2005 Nobel Memorial Prize in Economic Sciences.
    Keywords: Robert Aumann; game theory; repeated games; correlated equilibrium; common knowledge; continuum of agents
    JEL: C7 D4 D8 B31
    Date: 2006–03
  2. By: Jawwad Noor (Department of Economics, Boston University)
    Abstract: Due to factors such as temptation, choices may not respect normative prefer- ence (the agent.s own, subjective view of what constitutes his welfare). Neverthe- less, the evidence on preference reversals suggests a means of recovering normative preference from choice. A de.nition of normative preference in terms of choices between su¢ ciently delayed alternatives is formulated and studied. Mild condi- tions on behavior are shown to ensure the existence of a normative preference. Two characterizations are provided. It is demonstrated that a notion of welfare may exist inspite of dynamic inconsistency of preferences. An application shows that the evidence on hyperbolic discounting implies that agents.normative discount functions must be exponential.
    Keywords: Preference Reversals, Welfare, Temptation, Hyperbolic Discount- ing, Ethics.
    JEL: D11
    Date: 2005–10

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