Smoking Today and Stopping Tomorrow: A Limited Foresight Perspective

Posted: 4 Jun 2010

See all articles by Philippe Jehiel

Philippe Jehiel

University College London - Department of Economics; Ecole Nationale des Ponts et Chaussées (ENPC) - Centre d'Enseignement et de Recherche en Analyse Socio-Economique (CERAS); Centre for Economic Policy Research (CEPR)

Andrew Lilico

Europe Economics

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Abstract

This article 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 - as a result of having a short horizon of foresight - and refrain from smoking when they get older - as a result of having better foresight.

Keywords: bounded rationality, limited foresight, short-sightedness, smoking

JEL Classification: D03, D83, D91, I10

Suggested Citation

Jehiel, Philippe and Lilico, Andrew, Smoking Today and Stopping Tomorrow: A Limited Foresight Perspective. CESifo Economic Studies, Vol. 56, No. 2, pp. 141-164, 2010, Available at SSRN: https://ssrn.com/abstract=1617071 or http://dx.doi.org/ifp028

Philippe Jehiel (Contact Author)

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

Ecole Nationale des Ponts et Chaussées (ENPC) - Centre d'Enseignement et de Recherche en Analyse Socio-Economique (CERAS) ( email )

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75007 Paris
France
+33 1 4458 2873 (Phone)
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Andrew Lilico

Europe Economics ( email )

Chancery House
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London WC2A 1QU
United States

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