Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-54045
Chesney, Marc; Hazari, Bharat (1998). Irrational entry, rational exit. Journal of Mathematical Economics, 29(1):1-13.
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This paper sets up a model for analysing the problem of rational exit where the stopping time itself is part of the integration problem. The model development is for the case of smoking. Smoking produces pleasure, pain and addiction. Our model captures all these elements and using Brownian notion and continuous martingales establishes that “quit smoking” campaigns require a two pronged attack: educational and medical. It develops a new technique which can be applied to other stopping problems where stopping time itself is part of the integration problem.
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|Item Type:||Journal Article, refereed, original work|
|Communities & Collections:||03 Faculty of Economics > Department of Banking and Finance|
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||03 Jan 2012 17:17|
|Last Modified:||05 Apr 2016 15:19|
|Other Identification Number:||merlin-id:4685|
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