Self-Regulation through Goal Setting
AbstractGoals are an important source of motivation. But little is known about why and how people set them. We address these questions in a model based on two stylized facts from psychology and behavioral economics: i) Goals serve as reference points for performance. ii) Present-biased preferences create self-control problems. We show how goals permit self-regulation, but also that they are painful self-disciplining devices. Greater self-control problems therefore lead to stronger self-regulation through goals only up to a certain point. For severely present-biased preferences, the required goal for self-regulation is too painful and the individual rather gives up.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3893.
Length: 20 pages
Date of creation: Dec 2008
Date of revision:
Publication status: published in: Scandinavian Journal of Economics , 2011, 113 (1), 212-227;
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Other versions of this item:
- Alexander K. Koch & Julia Nafziger, 2011. "Selfâ€regulation through Goal Setting," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 113(1), pages 212-227, 03.
- A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
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