This paper considers an intertemporal decision problem in which the agent has limited foresight. It offers an interpretation of why people may smoke when they are young - and arguably have a short horizon of foresight – and refrain from smoking when they get older - and their foresight is better.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 2603.
Length: Date of creation: 2009 Date of revision: Handle: RePEc:ces:ceswps:_2603
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Find related papers by JEL classification: D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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