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The Behavioral Economics of Intrapersonal Conflict: A Critical Assessment

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  • Sebastian Krugel
  • Matthias Uhl

Abstract

Preferences often change -- even in short time intervals -- due to either the mere passage of time (present-biased preferences) or changes in environmental conditions (state-dependent preferences). On the basis of the empirical findings in the context of state-dependent preferences, we critically discuss the Aristotelian view of unitary decision makers in economics and urge a more Heraclitean perspective on human decision-making. We illustrate that the conceptualization of preferences as present-biased or state-dependent has very different normative implications under the Aristotelian view, although both concepts are empirically hard to distinguish. This is highly problematic, as it renders almost any paternalistic intervention justifiable.

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  • Sebastian Krugel & Matthias Uhl, 2021. "The Behavioral Economics of Intrapersonal Conflict: A Critical Assessment," Papers 2101.12526, arXiv.org.
  • Handle: RePEc:arx:papers:2101.12526
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    References listed on IDEAS

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