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Habit formation, self-deception, and self-control

Author

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  • Takashi Hayashi

    (University of Glasgow)

  • Norio Takeoka

    (Hitotsubashi University)

Abstract

Recent research in psychology suggests that successful self-control is attributed to developing adaptive habits rather than resisting temptation. However, developing good habits itself is a self-regulating process, and people often fail to accumulate good habits. This study axiomatically characterizes a dynamic decision model where an agent may form a deceptive belief about his future preference: the agent correctly anticipates his future preference by considering the effect of habits; however, he is also tempted to ignore the habit formation. Self-control must be exerted for resisting such a self-deceptive belief. Our model is flexible enough to accommodate a variety of habit formation and explains behavioral puzzles related to gym attendance, self-control fatigue, and demand for commitment.

Suggested Citation

  • Takashi Hayashi & Norio Takeoka, 2022. "Habit formation, self-deception, and self-control," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(2), pages 547-592, September.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:2:d:10.1007_s00199-022-01445-1
    DOI: 10.1007/s00199-022-01445-1
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    More about this item

    Keywords

    Habit formation; Self-deception; Projection bias; Self-control fatigue; Addiction; Endogenous time preference;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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