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A geometric approach to temptation

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  • Abe, Koji
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    Abstract

    We provide a simple geometric proof of the Gul and Pesendorfer’s (Gul and Pesendorfer, 2001) utility representation theorem about choice under temptation without self-control. We extract two incomplete orders from preferences: temptation relation and resistance relation. We characterize those relations geometrically and obtain temptation utility using a separation method à la Aumann (Aumann, 1962).

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 48 (2012)
    Issue (Month): 2 ()
    Pages: 92-97

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    Handle: RePEc:eee:mateco:v:48:y:2012:i:2:p:92-97

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    Web page: http://www.elsevier.com/locate/jmateco

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    Keywords: Temptation; No self-control; Temptation utility;

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    1. Jawwad Noor, 2006. "Menu-Dependent Self-Control," Levine's Bibliography 122247000000001061, UCLA Department of Economics.
    2. Kopylov Igor, 2009. "Temptations in General Settings," The B.E. Journal of Theoretical Economics, De Gruyter, De Gruyter, vol. 9(1), pages 1-25, September.
    3. Juan Dubra & Fabio Maccheroni & Efe Oki, 2001. "Expected utility theory without the completeness axiom," ICER Working Papers - Applied Mathematics Series, ICER - International Centre for Economic Research 11-2001, ICER - International Centre for Economic Research.
    4. Faruk Gul & Wolfgang Pesendorfer, 2001. "Temptation and Self-Control," Econometrica, Econometric Society, Econometric Society, vol. 69(6), pages 1403-1435, November.
    5. anonymous, 1991. "Fed upgrades functional cost analysis program," Financial Update, Federal Reserve Bank of Atlanta, issue Win, pages 2, 6.
    6. Faruk Gul & Wolfgang Pesendorfer, 2005. "The Revealed Preference Theory of Changing Tastes," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 429-448.
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