A Dual-Self Model of Impulse Control

A Dual-Self Model of Impulse Control Abstract We propose that a simple “dual-self” model gives a unified explanation for several empirical regularities, including the apparent time inconsistency that has motivated models of quasi-hyperbolic discounting and Rabin's paradox of risk aversion in the large and small. The model also implies that self-control costs imply excess delay, as in the O'Donoghue and Rabin models of quasi-hyperbolic utility, and it explains experimental evidence that increased cognitive load makes temptations harder to resist. The base version of our model is consistent with the Gul-Pesendorfer axioms, but we argue that these axioms must be relaxed to account for the effect of cognitive load. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Review American Economic Association

A Dual-Self Model of Impulse Control

American Economic Review, Volume 96 (5) – Dec 1, 2006

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Publisher
American Economic Association
Copyright
Copyright © 2006 by the American Economic Association
Subject
Articles
ISSN
0002-8282
D.O.I.
10.1257/aer.96.5.1449
Publisher site
See Article on Publisher Site

Abstract

Abstract We propose that a simple “dual-self” model gives a unified explanation for several empirical regularities, including the apparent time inconsistency that has motivated models of quasi-hyperbolic discounting and Rabin's paradox of risk aversion in the large and small. The model also implies that self-control costs imply excess delay, as in the O'Donoghue and Rabin models of quasi-hyperbolic utility, and it explains experimental evidence that increased cognitive load makes temptations harder to resist. The base version of our model is consistent with the Gul-Pesendorfer axioms, but we argue that these axioms must be relaxed to account for the effect of cognitive load.

Journal

American Economic ReviewAmerican Economic Association

Published: Dec 1, 2006

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