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Uphill Self-Control

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  • Jawwad Noor
  • Norio Takeoka

Abstract

This paper extends the theory of temptation and self-control introduced by Gul and Pesendorfer (2001) to allow for increasing marginal costs of resisting temptation, that is, convex self-control costs. It also proves a representation theorem that admits a general class of self-control cost functions. Both models maintain the Order, Continuity and Set-Betweenness axioms but violate Independence.
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Suggested Citation

  • Jawwad Noor & Norio Takeoka, 2009. "Uphill Self-Control," Levine's Working Paper Archive 814577000000000351, David K. Levine.
    • Handle: RePEc:cla:levarc:814577000000000351
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    References listed on IDEAS

    as
    1. David K. Levine & Drew Fudenberg, 2006. "A Dual-Self Model of Impulse Control," American Economic Review, American Economic Association, vol. 96(5), pages 1449-1476, December.
    2. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 2009. "Temptation-Driven Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 937-971.
    3. Noor, Jawwad & Takeoka, Norio, 2015. "Menu-dependent self-control," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 1-20.
    4. Noor, Jawwad, 2007. "Commitment and self-control," Journal of Economic Theory, Elsevier, vol. 135(1), pages 1-34, July.
    5. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    6. Faruk Gul & Wolfgang Pesendorfer, 2004. "Self-Control and the Theory of Consumption," Econometrica, Econometric Society, vol. 72(1), pages 119-158, January.
    7. Faruk Gul & Wolfgang Pesendorfer, 2005. "A Simple Theory of Temptation and Self-Control," Levine's Bibliography 784828000000000121, UCLA Department of Economics.
    8. Faruk Gul & Wolfgang Pesendorfer, 2001. "Temptation and Self-Control," Econometrica, Econometric Society, vol. 69(6), pages 1403-1435, November.
    9. Klaus Nehring, 2006. "Self-Control through Second-Order Preferences," Levine's Bibliography 321307000000000391, UCLA Department of Economics.
    10. Haluk Ergin & Todd Sarver, 2010. "A Unique Costly Contemplation Representation," Econometrica, Econometric Society, vol. 78(4), pages 1285-1339, July.
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    Citations

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    Cited by:

    1. Pejsachowicz, Leonardo & Toussaert, Séverine, 2017. "Choice deferral, indecisiveness and preference for flexibility," Journal of Economic Theory, Elsevier, vol. 170(C), pages 417-425.
    2. Koida, Nobuo, 2022. "Indecisiveness, preference for flexibility, and a unique subjective state space," Journal of Mathematical Economics, Elsevier, vol. 103(C).
    3. Yusufcan Masatlioglu & Daisuke Nakajima & Emre Ozdenoren, 2019. "Contract Design with Costly Convex Self-Control," Papers 1907.07628, arXiv.org.
    4. Nobuo Koida, 2018. "Anticipated stochastic choice," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(3), pages 545-574, May.
    5. Noor, Jawwad & Takeoka, Norio, 2015. "Menu-dependent self-control," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 1-20.
    6. Alexandrer Groves, 2013. "Identifying What is Tempting," 2013 Papers pgr489, Job Market Papers.
    7. Honda, Edward, 2021. "Sophistication and preference inconsistency in a menu utility representation," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 116-121.
    8. Gorno, Leandro, 2016. "Additive representation for preferences over menus in finite choice settings," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 41-47.
    9. Ravid, Doron & Steverson, Kai, 2021. "Bad temptation," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    10. Carlos Bethencourt & Lars Kunze, 2017. "Temptation and the efficient taxation of education and labor," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 986-1000, November.
    11. Pejsachowicz, Leonardo & Toussaert, Séverine, 2017. "Choice deferral, indecisiveness and preference for flexibility," LSE Research Online Documents on Economics 83566, London School of Economics and Political Science, LSE Library.
    12. Peysakhovich, Alexander, 2014. "How to commit (if you must): Commitment contracts and the dual-self model," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 100-112.
    13. Leandro Gorno, 2010. "Additive representation for preferences over menus in finite choice settings," Working Papers 1292, Princeton University, Department of Economics, Econometric Research Program..
    14. Riella, Gil, 2013. "Preference for Flexibility and Dynamic Consistency," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2467-2482.
    15. Toussaert, Séverine, 2018. "Eliciting temptation and self-control through menu choices: a lab experiment," LSE Research Online Documents on Economics 88107, London School of Economics and Political Science, LSE Library.
    16. Ahn, David S. & Iijima, Ryota & Sarver, Todd, 2020. "Naivete about temptation and self-control: Foundations for recursive naive quasi-hyperbolic discounting," Journal of Economic Theory, Elsevier, vol. 189(C).
    17. Noor, Jawwad & Ren, Linxia, 2023. "Temptation and guilt," Games and Economic Behavior, Elsevier, vol. 140(C), pages 272-295.
    18. Huseynov, Samir & Palma, Marco A. & Ahmad, Ghufran, 2021. "Does the magnitude of relative calorie distance affect food consumption?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 530-551.
    19. Eddie Dekel & Barton L. Lipman, 2010. "How (Not) to Do Decision Theory," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 257-282, September.
    20. Vadim Cherepanov & Tim Feddersen & Alvaro Sandroni, 2013. "Revealed preferences and aspirations in warm glow theory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 501-535, November.
    21. Borah, Abhinash & Garg, Raghvi, 2023. "Reference-dependent self-control: Menu effects and behavioral choices," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 129-145.
    22. Mihm, Maximilian & Ozbek, Kemal, 2018. "Mood-driven choices and self-regulation," Journal of Economic Theory, Elsevier, vol. 176(C), pages 727-760.
    23. Airaudo, Marco, 2020. "Temptation and forward-guidance," Journal of Economic Theory, Elsevier, vol. 186(C).
    24. Masatlioglu, Yusufcan & Nakajima, Daisuke & Ozdenoren, Emre, 2020. "Willpower and compromise effect," Theoretical Economics, Econometric Society, vol. 15(1), January.
    25. Chandrasekher, Madhav, 2018. "Informal commitments in planner–doer games," Journal of Economic Theory, Elsevier, vol. 173(C), pages 201-230.

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    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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