Bryan Caplan wrote:
> > ... If people have time-inconsistent preferences, but realize this fact,
> > then it can be enough to give them means to commit to future choices.
> > If people can neglect possible ways a contract can go bad, but realize
> > this fact, they can give arbitrators discretion to deal with this when
> > settling contract disputes.
>
>I think the reason they ignore it is that they think it is too
>far-fetched to be worthwhile studying. Have you got any empirical
>evidence to overcome that burden of proof?
People talk a lot about their difficulty in committing to long term plans.
They choose savings plans that they can't get out of. They take efforts to
avoid being around tempting candy bars. People choose contracts that give
arbitrators discretion. People talk a lot about various irrationalities
that they might fall into and ways they try to compensate for that.
People talk about realizing that each person tends to think highly of
him/herself, and trying to compensate for that. How is this so far-fetched?
Robin Hanson [EMAIL PROTECTED] http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030-4444
703-993-2326 FAX: 703-993-2323
