Self-control, revealed preference and consumption choice
AbstractWe provide a time consistent model that addresses the preference reversals that motivate the time inconsistency literature. The model subsumes the behavior generated by the time-inconsistency approach in finite settings but, unlike the time-inconsistent models, allows for self-control. This paper provides a brief summary of theoretical results shown elsewhere (Gul and Pesendorfer (2001), (2002a), (2002b)) and contrasts the predictions and welfare implications of our model and the time-inconsistent beta-delta model. (Copyright: Elsevier)
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Date of creation: 14 Mar 2003
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- Faruk Gul & Wolfgang Pesendorfer, 2004. "Self Control, Revealed Preferences and Consumption Choice," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(2), pages 243-264, April.
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