Addiction and Cue-Conditioned Cognitive Processes [report]

B. Douglas Bernheim, Antonio Rangel
2002 unpublished
We propose an economic theory of addiction based on the premise that cognitive mechanisms such as attention affect behavior independently of preferences. We argue that the theory is consistent with foundational evidence (e.g. from neuroscience and psychology) concerning the nature of decision-making and addiction. The model is analytically tractable, and it accounts for a broad range
doi:10.3386/w9329 fatcat:fkwnasvt25aqnctelbagb4bewm