Research Internship

Experience:
My research experience on "A Behavioral Model of Adaptation" took place virtually at the
University of Oxford, under the guidance of Professor Miguel A. Ballester, Lord Thomson
of Fleet Fellow and Professor of Economics. My involvement spanned approximately 16
weeks, with a time commitment of 60-65 hours.

Model:
Our research offered a framework to study behavioral adaptation, explaining how and
why individuals gradually adjust their behavior to new situations. We envisioned an
individual who rationally understands the benefits of responding to change, but for
whom modifying established, efficient internal routines comes at a cost. This cost of
behavioral change
necessitates a process of gradual integration between the desire to adapt and the inertia
of existing patterns. Our framework resonated with existing research on how
individuals alter their behavior after significant life changes. Similar dynamics have
been observed in studies of travel mode adjustments after relocation or workplace
changes, leisure choices of students transitioning to new universities, and even general
major life transitions.

Contribution:
Formalizing the model's axioms served as the cornerstone of the project's theoretical
structure. By crafting a logical and consistent framework, my work ensured the model's
internal coherence and paved the way for in-depth mathematical analysis. This
meticulous process provided a firm foundation for exploring the model's implications
and ultimately contributed to its ability to illuminate the intricate nuances of individual
adaptation in
response to environmental variations. Throughout my collaboration with Professor
Ballester, I benefitted immensely from his expertise and mentorship. His insightful
feedback through emails and engaging discussions on Zoom calls proved invaluable in
shaping and refining my contributions. His enthusiasm for the research was contagious
and kept me motivated throughout the project.

Research Mentor Email: miguelballester.ox@yahoo.com

Research Mentor Mailing Address: Department of Economics, University of Oxford,
Manor Road Building, Oxford OX1 3UQ.
 A behavioral model of adaptation

Abstract:
Adaptation refers to the process of changing behavior in response to a variation in the
environment. We propose a model of an adaptive individual that contemplates two
forces: on the one hand the individual benefits from adopting the ideal response to the
new
environment, but on the other hand, behavioral change is costly. We lay down the
axiomatic foundations of the model. We then study two applications. The first studies a
situation where ideal behavior depends on the response of another adaptive individual.
The second analyses the case where the ideal response is influenced by the strategic
interaction in a cheap talk-like game.

JEL classification: D01, D91

Keywords: Adaptation, Intertemporal behavior, changing tastes.
Published in the Journal of Economic Behavior & Organization, Volume 207, March 2023,
Pages 146-156