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Adam Smith’S Concept Of Self‐Command As A Solution To Dynamic Inconsistency And The Commitment Problem

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  • ELIAS L. KHALIL

Abstract

How is rationality related to morality and the emotions? In response to Hume, Smith argues that sympathy is about the attenuation, rather than the escalation, of original emotions because sympathy involves judgment. Sympathy means that the spectator understands an emotion felt by the principal by placing him or herself in the principal’s shoes. Such understanding would not take place unless the principal’s emotion is proper in that the principal has attenuated the pitch of the emotion via self‐command, that is, via rational choice. Smith’s notion of sympathy solves the commitment problem: agents command their emotions, which include the temptation to cheat their future selves and others, in order to receive approval. (JEL B12, D01, D64)

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  • Elias L. Khalil, 2010. "Adam Smith’S Concept Of Self‐Command As A Solution To Dynamic Inconsistency And The Commitment Problem," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 177-191, January.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:1:p:177-191
    DOI: 10.1111/j.1465-7295.2008.00182.x
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    Cited by:

    1. Khalil, Elias L., 2013. "Lock-in institutions and efficiency," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 27-36.
    2. Schubert, Christian, 2015. "Opportunity And Preference Learning," Economics and Philosophy, Cambridge University Press, vol. 31(2), pages 275-295, July.
    3. Khalil, Elias L., 2011. "The mirror neuron paradox: How far is understanding from mimicking?," Journal of Economic Behavior & Organization, Elsevier, vol. 77(1), pages 86-96, January.
    4. Khalil, Elias, 2022. "Does Friendship Stem from Altruism? Adam Smith and the Distinction between Love-based and Interest-based Preferences," OSF Preprints ygpmq, Center for Open Science.
    5. Khalil, Elias L., 2017. "Socialized view of man vs. rational choice theory: What does smith’s sympathy have to say?," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 223-240.
    6. Khalil, Elias L., 2010. "The Bayesian fallacy: Distinguishing internal motivations and religious beliefs from other beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 268-280, August.
    7. Matson, Erik W., 2021. "Satisfaction in action: Hume's endogenous theory of preferences and the virtues of commerce," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 849-860.

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    More about this item

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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