Working Paper

Smoking Today and Stopping Tomorrow: A Limited Foresight Perspective

Philippe Jehiel, Andrew Lilico
CESifo, Munich, 2009

CESifo Working Paper No. 2603

This paper considers an intertemporal decision problem in which the agent has limited foresight. It offers an interpretation of why people may smoke when they are young - and arguably have a short horizon of foresight – and refrain from smoking when they get older - and their foresight is better.

CESifo Category
Industrial Organisation
JEL Classification: D030,D840