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Sophistication about Self-Control

Deborah Cobb-Clark (), Sarah C. Dahmann, Daniel A. Kamhöfer and Hannah Schildberg-Hörisch
Authors registered in the RePEc Author Service: Hannah Schildberg-Hoerisch ()

No 1144, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: We propose a broadly applicable empirical approach to classify individuals as time-consistent versus native 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 naifs, 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; naiveté; commitment devices; present bias (search for similar items in EconPapers)
JEL-codes: D01 D91 (search for similar items in EconPapers)
Pages: 47 : Anh. p.
Date: 2021
New Economics Papers: this item is included in nep-evo, nep-hpe, nep-isf and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

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Working Paper: Sophistication about Self-Control (2021) Downloads
Working Paper: Sophistication about Self-Control (2021) Downloads
Working Paper: Sophistication about self-control (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp1144

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