Associate and Associate Professor of Managerial Economics and Strategy, Department of Management
Expertise: theory of contracts, behavioral economics, insurance markets
+44 (0)20 7955 0000
Long-Term Contracting With Time-Inconsistent Agents
01 March 2021
Daniel Gottlieb and Xingtan Zhang
We study contracts between naive present-biased consumers and risk-neutral firms. We show that the welfare loss from present bias vanishes as the contracting horizon grows. This is true both when bargaining power is on t... Read more...