Melioration: A Theory of Distributed Choice

摘要: In this paper, we develop a theory of individual choice called melioration, which implies that choices distributed over period time may be reliably and predictably suboptimal, in terms the person's own preferences. Consider some typical examples choices: expenditure rate on various non-durables; frequency athletic exercise; work free-lance type occupations; allocation leisure time; savings (or dissavings); expenditures lottery tickets, other forms gambling. When people express dissatisfaction about their choices, discontent seems clustered around these sorts choices. For example, complaints one is working too hard not enough), exercising little much), wasting time, overeating, overspending, so are commonplace. The next two sections paper spell out basic proposing. following section then applies to "pathological" consumption patterns, shows should find general underinvestment those activities exhibit increasing average returns consumption, an overinvestment have addiction-like interaction between value rate. final compares with approaches suboptimal choice.