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A "Dual Self" Representation for Stochastic Temptation

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  • Kalyan Chatterjee
  • R. Vijay Krishna

Abstract

We consider the following two-period problem of self-control. In the first period, an individual has to decide on the set of feasible choices from which she will select one in the second period. In the second period, the individual might choose an alternative that she would find inferior in the first period, an eventuality that need not occur with certainty. We propose a model for this problem and axioms for first-period preferences, in which the second-period choice could be interpreted as being made by an "alter ego" who appears randomly. We provide a discussion of the behavioral implications of our model as compared with existing theories. (JEL D11, D80)

Suggested Citation

  • Kalyan Chatterjee & R. Vijay Krishna, 2009. "A "Dual Self" Representation for Stochastic Temptation," American Economic Journal: Microeconomics, American Economic Association, vol. 1(2), pages 148-167, August.
    • Handle: RePEc:aea:aejmic:v:1:y:2009:i:2:p:148-67
    Note: DOI: 10.1257/mic.1.2.148
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Noor, Jawwad & Takeoka, Norio, 2015. "Menu-dependent self-control," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 1-20.
    2. Manzini, Paola & Mariotti, Marco, 2018. "Dual random utility maximisation," Journal of Economic Theory, Elsevier, vol. 177(C), pages 162-182.
    3. S. Nageeb Ali, 2011. "Learning Self-Control," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 857-893.
    4. Joaquín Gómez-Miñambres, 2015. "Temptation, horizontal differentiation and monopoly pricing," Theory and Decision, Springer, vol. 78(4), pages 549-573, April.
    5. Pedram Heydari, 2020. "Stochastic choice over menus," Theory and Decision, Springer, vol. 88(2), pages 257-268, March.
    6. Panagiotis Andrikopoulos & Nick Webber, 2019. "Understanding time-inconsistent heterogeneous preferences in economics and finance: a practice theory approach," Annals of Operations Research, Springer, vol. 282(1), pages 3-26, November.
    7. Drew Fudenberg & David K. Levine, 2012. "Timing and Self‐Control," Econometrica, Econometric Society, vol. 80(1), pages 1-42, January.
    8. Mihm, Maximilian & Ozbek, Kemal, 2018. "Mood-driven choices and self-regulation," Journal of Economic Theory, Elsevier, vol. 176(C), pages 727-760.
    9. Rudy Henkel, 2021. "Multiself Bargaining," Studies in Microeconomics, , vol. 9(1), pages 28-65, June.
    10. André Lapied & Thomas Rongiconi, 2013. "Ambiguity as a Source of Temptation: Modeling Unstable Beliefs," AMSE Working Papers 1316, Aix-Marseille School of Economics, France.
    11. David S. Ahn & Ryota Iijima & Yves Le Yaouanq & Todd Sarver, 2017. "Behavioral Characterizations of Naivet� for Time-Inconsistent Preferences," Cowles Foundation Discussion Papers 2074, Cowles Foundation for Research in Economics, Yale University.
    12. Claes Ek & Margaret Samahita, 2019. "Pessimism and Overcommitment," Working Papers 201921, School of Economics, University College Dublin.
    13. Galperti, Simone, 2019. "A theory of personal budgeting," Theoretical Economics, Econometric Society, vol. 14(1), January.
    14. David Jiménez-Gómez, 2018. "The Evolution of Self-Control in the Brain," Working Papers. Serie AD 2018-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Toussaert, Séverine, 2018. "Eliciting temptation and self-control through menu choices: a lab experiment," LSE Research Online Documents on Economics 88107, London School of Economics and Political Science, LSE Library.
    16. Kalyan Chatterjee & R Vijay Krishna & Barry Sopher, 2022. "Intertemporal planning with subjective uncertainty: anticipating your lazy, disorganized self," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-12.
    17. Sun, Xing & Zhang, Daowei, 2020. "A theoretical and empirical analysis of joint forest production: Timber supply and amenity services," Forest Policy and Economics, Elsevier, vol. 115(C).
    18. Carvalho, M., 2011. "Essays in behavioral microeconomic theory," Other publications TiSEM 97fbb10e-5f12-420b-b8c4-e, Tilburg University, School of Economics and Management.

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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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