What sophisticated choice avoids is the specific sequential-trade exploitation pattern where the agent pays to switch from A to B and then pays to switch back.
Well, no. I demonstrate not just leaving money on the table, as discussed by other commentators, but this kind of money-pump that extracts infinite utility out of sophisticated choice.
Well, no. I demonstrate not just leaving money on the table, as discussed by other commentators, but this kind of money-pump that extracts infinite utility out of sophisticated choice.
You’re right, I mislooked. This is a stronger result.
I’ll update the footnote.