We experimentally study the relationship between time inconsistency, sophistication about and self-commitment. Previous research has interpreted demand for commitment devices as evidence of a time-inconsistent decision-maker. In our laboratory experiment, we attempt to measure directly by way cognitive test. then test hypothesis that people who are both show high capacity take up when offered i...

This paper studies the implications of unobservable consumer naivete on selection and welfare in a competitive insurance market with moral hazard. We identify two distinct forces of sophistication driving the formation of market equilibriums. One is that sophistication helps individuals internalize the incentive to take high effort by adopting some commitment devices, and hence sophisticates ar...

This paper reports the results of a study aimed at understanding and characterising IT management sophistication in small businesses. A multiple-case study approach was therefore used to explore the IT management practices of small businesses. Data collection involved four small-medium chartered accountancy (CA) firms and three IT firms closely associated with the CA industry. The case results ...

Information and Communication Technology (ICT) has become the no. 1 business driver of economy and the key to practically all human activities. The ongoing reduction of the size and the cost of computers together with increased speed and performance allows the implementation of functionalities completely unimaginable even a decade ago. This creates a demand for more software with higher sophist...