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Full-Text Articles in Social and Behavioral Sciences
Dynamic Optimization And Conformity In Health Behavior And Life Enjoyment Over The Life Cycle, Hernán D. Bejarano, Hillard Kaplan, Stephen Rassenti
Dynamic Optimization And Conformity In Health Behavior And Life Enjoyment Over The Life Cycle, Hernán D. Bejarano, Hillard Kaplan, Stephen Rassenti
ESI Publications
This article examines individual and social influences on investments in health and enjoyment from immediate consumption. Our lab experiment mimics the problem of health investment over a lifetime (Grossman, 1972a,b). Incentives to find the appropriate expenditures on life enjoyment and health are given by making in each period come period a function of previous health investments. In order to model social effects in the experiment, we randomly assigned individuals to chat/observation groups. Groups were permitted to freely chat between repeated lifetimes. Two treatments were employed: In the Independent-rewards treatment, an individual's rewards from investments in life enjoyment depend only on …