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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 365, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: We propose a broadly applicable empirical approach to classify individuals as timeconsistent 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: self-control; sophistication; naïveté; commitment devices; present bias (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-hea and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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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:zbw:dicedp:365

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