Self-Control Problems of the Dual Self

Shinsuke Ikeda

Chapter Chapter 4 in The Economics of Self-Destructive Choices, 2016, pp 67-111 from Springer

Abstract: Abstract In the previous chapter, I explained hyperbolic discounting, a source of behavioral bias which people exhibit when making intertemporal choices. Taking into account 10 years into the future while discounting tomorrow is an act that reflects humans’ dual nature. Under hyperbolic discounting, when the benefit (or the cost) of a choice is near at hand, people become motivated to prioritize the immediate benefit and revise the original plan, because the subjective discount rate suddenly increases, making them impatient. Of course, people do not always give in to such temptation and choose the “easy” option. In this chapter, I would like to refer to some data, theoretically consider what decision-making problems arise under hyperbolic discounting, and examine how we take actions to deal with these problems.

Keywords: Polar Bear; Permanent Income; Liquid Asset; Hyperbolic Discount; Spending Level (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:spr:advchp:978-4-431-55793-7_4

Ordering information: This item can be ordered from
http://www.springer.com/9784431557937

DOI: 10.1007/978-4-431-55793-7_4

Access Statistics for this chapter

More chapters in Advances in Japanese Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().