How Far Ahead Do People Plan?
We report on a simple experiment which enables us to infer how far people plan ahead when taking decisions in a dynamic risky context. Usually economic theory assumes that people plan right to the end of the planning horizon. We find that this is true for a little over half of the subjects in the experiment, while a little under one half seem not to plan ahead at all.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom|
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Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/
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- Enrica Carbone & John Hey, 2001.
"A Test of the Principle of Optimality,"
Theory and Decision,
Springer, vol. 50(3), pages 263-281, May.
- John D. Bone & John D. Hey & John R. Suckling, 2003. "Do people plan ahead?," Applied Economics Letters, Taylor & Francis Journals, vol. 10(5), pages 277-280, April.
- John D. Hey, 2002. "Experimental Economics and the Theory of Decision Making Under Risk and Uncertainty," The Geneva Risk and Insurance Review, Palgrave Macmillan, vol. 27(1), pages 5-21, June.
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