Friday, September 9, 2011

15 September 2011: Have Patience, Its Good

Amit Goyal
Indian Statistical Institute

In this paper we model a consumer who is ex ante unaware of his preferences over the set of alternatives and who can learn his preference by trying those alternatives one by one. He has a discount factor which prevents him from experimenting forever. Higher the patience level of the consumer, bigger will be the experimentation period and the more he will learn about his preferences. We then introduce firms in the model which will provide these alternatives with the aim to maximize profits. This paper is an attempt to answer how is this number of alternatives provided related with the average patience level of the agents in the economy.

Date: September 15, 2011
Time: 03:00 P.M.

AMEX Conference Room (Second Floor),
Department of Economics,
Delhi School of Economics,
New Delhi-110007(INDIA)


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