AbstractIn formalizing a ‘veil of ignorance’ type procedure, this paper considers how an agentʼs preferences over a set of alternatives change as he is placed at an increasing ‘distance’ from the consequences of his choices. A definition for such ‘removed preferences’ is presented and its properties studied. As an application, it is demonstrated that present biased agents are ‘essentially’ exponential when distanced from the present, and that rank-dependent expected utility agents are ‘essentially’ expected utility when distanced from risk.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 148 (2013)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/622869
Psychological distance; Veil of ignorance; Behavioral welfare; Discounting; Probability weighting;
Other versions of this item:
- Jawwad Noor, 2011. "Removed Preferences," Boston University - Department of Economics - Working Papers Series, Boston University - Department of Economics WP2011-038, Boston University - Department of Economics.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D60 - Microeconomics - - Welfare Economics - - - General
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