Are Two Bads Better Than One? A Model of Sensory Limitations

36 Pages Posted: 24 Sep 2018 Last revised: 22 Jun 2026

See all articles by Lars John Lefgren

Lars John Lefgren

Brigham Young University - Department of Economics

Olga Stoddard

Brigham Young University

John E. Stovall

Brigham Young University

Date Written: September 2018

Abstract

We present a theoretical framework which explains the optimizing behavior of individuals who are exposed to many latent stimuli but prone to experience only the most salient one. We show that individuals with such preferences may find it optimal to engage in seemingly dysfunctional behavior such as self-harm. Our model also explains the behavior of individuals experiencing depression or trapped by multiple competing problems. We present experimental evidence suggesting such preferences explain the behavior of more than two thirds of subjects exposed to single and multiple painful stimuli.

Suggested Citation

Lefgren, Lars John and Stoddard, Olga and Stovall, John E., Are Two Bads Better Than One? A Model of Sensory Limitations (September 2018). NBER Working Paper No. w25060, Available at SSRN: https://ssrn.com/abstract=3254036

Lars John Lefgren (Contact Author)

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States

Olga Stoddard

Brigham Young University ( email )

984 West 980 North
American Fork, UT 84003
United States

John E. Stovall

Brigham Young University ( email )

Provo, UT 84602
United States

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