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Sweet self-deception

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  • Dag Sommervoll

Abstract

People have a tendency to procrastinate when faced with aversive tasks—but they also procrastinate in relation to beneficial matters whose rewards are instantaneous. If agents value present anticipations of future consumption, revision of consumption plans may be viewed as a benign form of self-deception. We consider a minimal generalization of the Samuelson discounted utility model to allow for utility linked to next period consumption. Agents are assumed to vary with respect to their sophistication. In this context, commitment and self-control are obstacles to the pursuit of increased utility. We also examine different environments that are likely to facilitate repeated revisions. Copyright Springer-Verlag Wien 2013

Suggested Citation

  • Dag Sommervoll, 2013. "Sweet self-deception," Journal of Economics, Springer, vol. 109(1), pages 73-88, May.
    • Handle: RePEc:kap:jeczfn:v:109:y:2013:i:1:p:73-88
    DOI: 10.1007/s00712-012-0308-2
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    References listed on IDEAS

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    Cited by:

    1. Stan Miles & Peter Smoczynski, 2016. "Optimal Intertemporal Consumption and Involuntary Memories of Consumption," Australian Economic Papers, Wiley Blackwell, vol. 55(3), pages 251-273, September.

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    More about this item

    Keywords

    Intertemporal choice; Self-deception; Time inconsistency; Naivete; Self-control; Discounted utility functions; Anticipation; Memory; A12; B49; C70; D11; D60; D74; D91; E21;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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