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Self-Reputation and Perception of Reputation

  • Jung Hun Cho
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    This paper examines how the belief of decision maker regarding his ability to keep a resolution and his belief regarding what others think of him affect his actions. Higher self-reputation increases future payoff but higher perception of reputation can either increase or decrease it for an individual who has a strong ability to keep a resolution. However, both higher self-reputation and higher perception of reputation may not help increase future payoff for a decision maker who has a weak ability to resist temptation if he makes a resolution relatively easily in the second period. These results help to explain why some people ask for help or do not ask for help from friends to keep a resolution and why some people can or cannot sustain the resolution in the short run.

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    File URL: http://www.cerge-ei.cz/pdf/wp/Wp343.pdf
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    Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp343.

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    Date of creation: Nov 2007
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    Handle: RePEc:cer:papers:wp343
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    7. Jonathan Gruber & Botond Köszegi, 2001. "Is Addiction "Rational"? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1261-1303, November.
    8. Goldman, Steven M, 1980. "Consistent Plans," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 533-37, April.
    9. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
    10. Roland Benabou and Jean Tirole, 2004. "Willpower and Personal Rules," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 848-886, August.
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    13. Brocas, Isabelle & Carrillo, Juan D., 2000. "The value of information when preferences are dynamically inconsistent," European Economic Review, Elsevier, vol. 44(4-6), pages 1104-1115, May.
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