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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.
Date:
4 March 2022, 14:15
Venue:
Seminar Room C or Join Zoom https://zoom.us/j/91802954429
Speaker:
Shengwu Li (Harvard University)
Organising department:
Department of Economics
Part of:
Nuffield Economic Theory Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Emma Heritage
