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Awareness of low self-control: Theory and evidence from a homeless shelter

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  • Incekara-Hafalir, Elif
  • Linardi, Sera

Abstract

Survey measures of self-control provide a potential low-cost alternative to incentivized elicitation. However, asking respondents to introspect on their self-control problems may instead measure their awareness of them, especially in populations with low self-control. We illustrate this with the Ameriks, Caplin, Leahy, and Tyler (2007) survey, which captures self-control problems through the deviation between self-reported ideal and predicted behavior (Expected Deviation, ED). Previous empirical evidence from high income or highly educated populations correlates larger ED with worse outcomes. We theoretically show that the reverse will be true in settings where awareness can play a large role: when self-control is low and costly commitment devices are available. We empirically show that, for residents of a homeless shelter, ED is positively correlated to savings in shelter lockboxes, a costly commitment device. This correlation is stronger for those likely to experience more self-control problems: individuals with past addiction problems.

Suggested Citation

  • Incekara-Hafalir, Elif & Linardi, Sera, 2017. "Awareness of low self-control: Theory and evidence from a homeless shelter," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 39-54.
    • Handle: RePEc:eee:joepsy:v:61:y:2017:i:c:p:39-54
    DOI: 10.1016/j.joep.2017.02.015
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    Cited by:

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    2. Erev, Ido & Hiller, Maximilian & Klößner, Stefan & Lifshitz, Gal & Mertins, Vanessa & Roth, Yefim, 2022. "Promoting healthy behavior through repeated deposit contracts: An intervention study," Journal of Economic Psychology, Elsevier, vol. 92(C).
    3. Laureti, Carolina & Szafarz, Ariane, 2023. "Banking regulation and costless commitment contracts for time-inconsistent agents," Economic Modelling, Elsevier, vol. 129(C).
    4. repec:cup:judgdm:v:14:y:2019:i:1:p:11-25 is not listed on IDEAS
    5. Linda Thunström, 2019. "Welfare effects of nudges: The emotional tax of calorie menu labeling," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 11-25, January.

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    More about this item

    Keywords

    Self-control; Consumer behavior; Surveys; Commitment devices; Awareness; Sophistication; Quasi-hyperbolic discounting;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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