A Dual Self Model of Impulse Control

Drew Fudenberg and David K. Levine

No 2049, Harvard Institute of Economic Research Working Papers from Harvard - Institute of Economic Research

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 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 hyperbolic utility, and it explains experimental evidence that increased cognitive load makes temptations harder to resist. Finally, the reduced form of the base version of our model is consistent with the Gul-Pesendorfer axioms.

Date: 2004
View citations in EconPapers

Downloads: (external link)
http://www.economics.harvard.edu/pub/hier/2004/HIER2049.pdf (application/pdf)

Related works:
Working Paper: A Dual Self Model of Impulse Control (2006)
Working Paper: A Dual Self Model of Impulse Control (2005)
Journal Article: A Dual-Self Model of Impulse Control (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fth:harver:2049

Access Statistics for this paper

More papers in Harvard Institute of Economic Research Working Papers from Harvard - Institute of Economic Research
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().