Commitment and Self-Control
AbstractThe literature on self-control problems has typically concentrated on immediate temptations. This paper studies a Gul and Pesendorfer (2001, 2004) style model in which decision-makers are affected by temptations that lie in the future. While temptation is commonly understood to give rise to a demand for commitment, it is shown that `temptation by future consumption' can induce its absence. The model also exhibits procrastination, provides an alternative to projection bias as an explanation for some experimental results, and can simultaneously account for myopic and hyperopic behavior. The evidence on preference reversals supports temptation by future consumption, and suggests that it may not be restricted to short time horizons.
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Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 0509008.
Length: 46 pages
Date of creation: 28 Sep 2005
Date of revision:
Note: Type of Document - pdf; pages: 46
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Web page: http://126.96.36.199
Self-Control; Temptation; Commitment; Preference Reversals; Procrastination;
Other versions of this item:
- Jawwad Noor, 2005. "Commitment and Self-Control," Boston University - Department of Economics - Working Papers Series WP2005-014, Boston University - Department of Economics.
- D1 - Microeconomics - - Household Behavior
- D2 - Microeconomics - - Production and Organizations
- D3 - Microeconomics - - Distribution
- D4 - Microeconomics - - Market Structure and Pricing
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