Sophistication about Self-Control

Deborah Cobb-Clark, Sarah C. Dahmann, Daniel A. Kamhöfer and Hannah Schildberg-Hörisch
Additional contact information
Daniel A. Kamhöfer: Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics
Hannah Schildberg-Hörisch: Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics
Authors registered in the RePEc Author Service: Hannah Schildberg-Hoerisch ()

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: We propose a broadly applicable empirical approach to classify individuals as time consistent versus naive or sophisticated regarding their self-control limitations. Operationalizing our approach based on nationally representative data reveals that self-control problems are pervasive and that most people are at least partly aware of their limited self-control. Compared to naïfs, sophisticates have higher IQs, better educated parents, and are more likely to take up commitment devices. Accounting for both the level and awareness of self-control limitations has predictive power beyond one-dimensional notions of self-control that neglect awareness. Importantly, sophistication fully compensates for self-control problems when choices involve immediate costs and later benefits. Raising people's awareness of their own self-control limitations may thus assist them in overcoming any adverse consequences.

Keywords: self-control; sophistication; naïveté; commitment devices; present bias (search for similar items in EconPapers)
JEL-codes: D01 D91 (search for similar items in EconPapers)
Pages: 76pp
Date: 2021-08
New Economics Papers: this item is included in nep-evo, nep-hpe and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Sophistication about self-control (2024)
Working Paper: Sophistication about Self-Control (2021)
Working Paper: Sophistication about Self-Control (2021)
Working Paper: Sophistication about self-control (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2021n16

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