Self-Regulatory Strength and Dynamic Optimal Purchase

Kamei, Kenju

doi:10.2139/ssrn.1916455

Self-Regulatory Strength and Dynamic Optimal Purchase

8 Pages Posted: 27 Aug 2011 Last revised: 15 Jun 2012

See all articles by Kenju Kamei

Kenju Kamei

Durham University - Department of Economics and Finance

Date Written: December 4, 2011

Abstract

I study a single-agent dynamic purchase problem by using a Gul and Pesendorfer's [Review of Economic Studies (2007)] dynamic preference: extreme self-control cannot be sustained and leads to addiction. This type of agent exhibits a behavioral pattern of self-regulatory depletion.

Keywords: self-control, optimal control, consumption

JEL Classification: D01, D03, D91

Suggested Citation: Suggested Citation

Kamei, Kenju, Self-Regulatory Strength and Dynamic Optimal Purchase (December 4, 2011). Available at SSRN: https://ssrn.com/abstract=1916455 or http://dx.doi.org/10.2139/ssrn.1916455