Nir, A. (Tilburg University, Center for Economic Research)
Abstract
People who understand self-control problems can devise mechanisms to overcome them. In this paper, we discuss how relationships can help individuals overcome their selfcontrol problems by creating a tradeoff between desired present procrastination and undesired future procrastination. Threatening not to speak to a person who caves in can create such a tradeoff. The results depend on a limited memory assumption. We show how such interactions can explain strategic pretence, strategic ignorance, why a person would choose to punish himself after he caved in and why punishments need to increase if not adhered to immediately.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
49.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Benabou, R. & Battaglini, M., 2001.
"Self-Control in peer Groups,"
Papers
217, Princeton, Woodrow Wilson School - Public and International Affairs.
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Ted O'Donoghue & Matthew Rabin, 1999.
"Doing It Now or Later,"
American Economic Review,
American Economic Association, vol. 89(1), pages 103-124, March.
[Downloadable!] (restricted)
Benabou, R. & Tirole, J., 2001.
"Willpower and Personal Rules,"
Papers
216, Princeton, Woodrow Wilson School - Public and International Affairs.
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