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Self-Rewards and Personal Motivation

Author Info

  • 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)

Abstract

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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File URL: ftp://ftp.econ.au.dk/afn/wp/12/wp12_14.pdf
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Paper provided by Department of Economics and Business Economics, Aarhus University 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
Contact details of provider: Web page: http://www.econ.au.dk/afn/

Keywords: Quasi-hyperbolic discounting; reference-dependent preferences; loss aversion; self-control; self-rewards; goals;

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Find related papers by JEL classification:
  • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
  • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
  • D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving

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Cited by:

  1. Alice Hsiaw, 2015. "Goal Bracketing and Self-Control," Working Papers 90, Brandeis University, Department of Economics and International Businesss School.
  2. Jonathan de Quidt, 2014. "Your loss is my gain: a recruitment experiment with framed incentives," LSE Research Online Documents on Economics 58208, London School of Economics and Political Science, LSE Library.
  3. Hanna Fromell & Daniele Nosenzo & Trudy Owens, 2014. "Tradeoffs between Self-interest and Other-Regarding Preferences Cause Willpower Depletion," Discussion Papers 2014-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  4. Koch, Alexander & Nafziger, Julia & Nielsen, Helena Skyt, 2015. "Behavioral economics of education," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 3-17.

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