Rational Addiction with Learning and Regret

摘要: We present a theory of rational behavior in which individuals maximize set stable preferences over goods with unknown addictive power. The is based on three fundamental postulates: that consumption the good not equally harmful to all, possess subjective beliefs concerning this harm, and are optimally undated information gained through consumption. Although individual actions optimal dynamically consistent, addicts regret their past decisions initial assessment potential harm good. Addict-prone who believe "it could happen them" most likely be drawn into addiction.