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Relationships as commitment devices : strategic silence

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Author Info
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.

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Date of creation: 2004
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Handle: RePEc:dgr:kubcen:200449

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Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
R20 - Urban, Rural, and Regional Economics - - Household Analysis - - - General

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References listed on IDEAS
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  1. Roland Bénabou & Jean Tirole, 2002. "Self-Confidence And Personal Motivation," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 871-915, August. [Downloadable!] (restricted)
  2. Akerlof, George A, 1991. "Procrastination and Obedience," American Economic Review, American Economic Association, vol. 81(2), pages 1-19, May.
  3. repec:fth:harver:1440 is not listed on IDEAS
  4. Thaler, Richard, 1981. "Some empirical evidence on dynamic inconsistency," Economics Letters, Elsevier, vol. 8(3), pages 201-207. [Downloadable!] (restricted)
  5. David G. Pearce & Dilip Abreu & Ennio Stacchetti, 1989. "Renegotiation and Symmetry in Repeated Games," Cowles Foundation Discussion Papers 920, Cowles Foundation, Yale University. [Downloadable!]
  6. Carrillo, Juan D & Mariotti, Thomas, 2000. "Strategic Ignorance as a Self-Disciplining Device," Review of Economic Studies, Blackwell Publishing, vol. 67(3), pages 529-44, July.
  7. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
  8. Dilip Abreu & David Pearce & Ennio Stacchetti, 1989. "Renegotiation and Symmetry in Repeated Games," STICERD - Theoretical Economics Paper Series 198, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  9. Ted O' Donoghue & Matthew Rabin, 2001. "Choice and Procrastination," Microeconomics 0012002, EconWPA. [Downloadable!]
  10. Benabou, R. & Battaglini, M., 2001. "Self-Control in peer Groups," Papers 217, Princeton, Woodrow Wilson School - Public and International Affairs.
    Other versions:
  11. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 443-77, May.
  12. 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)
  13. Benabou, R. & Tirole, J., 2001. "Willpower and Personal Rules," Papers 216, Princeton, Woodrow Wilson School - Public and International Affairs.
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  14. Peleg, Bezalel & Yaari, Menahem E, 1973. "On the Existence of a Consistent Course of Action when Tastes are Changing," Review of Economic Studies, Blackwell Publishing, vol. 40(3), pages 391-401, July. [Downloadable!] (restricted)
  15. Ted O'Donoghue & Matthew Rabin, 2001. "Choice And Procrastination," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 121-160, February. [Downloadable!] (restricted)
  16. Farrell, Joseph & Maskin, Eric, 1989. "Renegotiation in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 327-360, December. [Downloadable!] (restricted)
    Other versions:
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