2 papers
econ.TH2021
A Theory of Ex Post Rationalization
Erik Eyster, Shengwu Li, Sarah Ridout
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 cho…
econ.TH2020
A Model of Justification
Sarah Ridout
I consider decision-making constrained by considerations of morality, rationality, or other virtues. The decision maker (DM) has a true preference over outcomes, but feels compelle…