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Self-Rewards and Personal Motivation

  • Alexander K. Koch,


    (Department of Economics and Business, Aarhus University, Denmark)

  • Julia Nafziger


    (Department of Economics and Business, Aarhus University, Denmark)

  • Anton Suvorov

    (CEFIR and New Economic School)

  • Jeroen van de Ven

    (University of Amsterdam and Tinbergen Institute)

Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended to increase personal motivation. We show that in a model with time-inconsistent and reference-dependent preferences, self-rewards can be a credible and effective tool to overcome self-control problems. We also characterize the type of self-rewards that can be used, such as vice goods and virtue goods, and analyze which types of goods will be preferred by the individual.

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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2012-14.

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Length: 21
Date of creation: 04 Jul 2012
Date of revision:
Handle: RePEc:aah:aarhec:2012-14
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