A Dual-Self Model of Impulse Control

Drew Fudenberg and David Levine

Scholarly Articles from Harvard University Department of Economics

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.

Date: 2006
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Citations: View citations in EconPapers (470)

Published in American Economic Review

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Related works:
Journal Article: A Dual-Self Model of Impulse Control (2006)
Working Paper: A Dual Self Model of Impulse Control (2006)
Working Paper: A Dual Self Model of Impulse Control (2005)
Working Paper: A Dual Self Model of Impulse Control (2004)
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