Sophistication about Self-Control

Deborah Cobb-Clark, Sarah C. Dahmann, Daniel Kamhofer and Hannah Schildberg-Hörisch ()
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Hannah Schildberg-Hörisch: Max Planck Institute for Research on Collective Goods
Authors registered in the RePEc Author Service: Hannah Schildberg-Hoerisch ()

No 14609, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We propose a broadly applicable empirical approach to classify individuals as time-consistent versus naïve 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: commitment devices; naïveté; sophistication; self-control; present bias (search for similar items in EconPapers)
JEL-codes: D01 D91 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2021-07
New Economics Papers: this item is included in nep-evo, nep-isf and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: Journal of Public Economics, 2024, 238, 105196

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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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