A Theory of Ex Post Rationalization

People rationalize their past choices, even those that were mistakes in hindsight. We propose a formal theory of this behavior. The theory predicts that sunk costs affect later choices. Its model primitives are identified by choice behavior and it yields tractable comparative statics.

Bibliographische Detailangaben

Hauptverfasser:	Eyster, Erik, Li, Shengwu, Ridout, Sarah
Format:	Artikel
Sprache:	eng
Online-Zugang:	Volltext bestellen
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