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- W2184952581 abstract "We consider saving decisions in an economy where agents are characterized by heterogeneous levels of sophistication. In our simple setting, we are able to make a distinction between aspects of fundamental sophistication and strategic sophistication. The equilibrium of this economy is inefficient as sophisticated households do not offset the distortions that result from information and behavior of naive households. We show instances in which increments in the ability of sophisticated households to perceive more precise information results in less efficient outcomes. Additionally, we identify simple policy interventions that would increase welfare levels." @default.
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- W2184952581 date "2012-01-01" @default.
- W2184952581 modified "2023-10-07" @default.
- W2184952581 title "Saving decisions under bounded and heterogeneous sophistication" @default.
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