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Self-Rewards and Personal Motivation

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Author Info

  • Alexander K. Koch,

    ()
    (Department of Economics and Business, Aarhus University, Denmark)

  • Julia Nafziger

    ()
    (Department of Economics and Business, Aarhus University, Denmark)

  • Anton Suvorov

    (CEFIR and New Economic School)

  • Jeroen van de Ven

    (University of Amsterdam and Tinbergen Institute)

Abstract

Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended to increase personal motivation. We show that in a model with time-inconsistent and reference-dependent preferences, self-rewards can be a credible and effective tool to overcome self-control problems. We also characterize the type of self-rewards that can be used, such as vice goods and virtue goods, and analyze which types of goods will be preferred by the individual.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2012-14.

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Length: 21
Date of creation: 04 Jul 2012
Date of revision:
Handle: RePEc:aah:aarhec:2012-14

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Quasi-hyperbolic discounting; reference-dependent preferences; loss aversion; self-control; self-rewards; goals;

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References

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Cited by:
  1. Jonathan de Quidt, 2014. "Your Loss Is My Gain: A Recruitment Experiment With Framed Incentives," STICERD - Economic Organisation and Public Policy Discussion Papers Series 52, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.

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