Abstract

References (49)

Beta

Citations (51)

Beta

Download | Share | Email | Add to Briefcase | Buy Hard Copy

A Dual Self Model of Impulse Control

Drew Fudenberg
Harvard University - Department of Economics

David K. Levine
University of California, Los Angeles - Department of Economics

March 2006

Harvard Institute of Economic Research Discussion Paper No. 2112

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 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 hyperbolic utility, and it explains experimental evidence that increased cognitive load makes temptations harder to resist. Finally, the reduced form of the base version of our model is consistent with the Gul-Pesendorfer axions.

Note: A previous version of this paper can be found at: http://ssrn.com/abstract=617522

Working Paper Series

Date posted: March 07, 2006 ; Last revised: March 28, 2006

Suggested Citation

Fudenberg , Drew and Levine, David K., A Dual Self Model of Impulse Control (March 2006). Harvard Institute of Economic Research Discussion Paper No. 2112. Available at SSRN: http://ssrn.com/abstract=888752

Export to: Export Citation What's this?

Contact Information

Drew Fudenberg (Contact Author) Harvard University - Department of Economics ( email ) Littauer Center Room 310 Cambridge, MA 02138 United States 617-496-5895 (Phone) 617-495-7730 (Fax)
David K. Levine University of California, Los Angeles - Department of Economics ( email ) P.O. Box 951477 8283 Bunche Los Angeles, CA 90095-1477 United States 310-825-3810 (Phone) 310-825-9528 (Fax)