Self-Regulatory Strength and Dynamic Optimal Purchase
8 Pages Posted: 27 Aug 2011 Last revised: 15 Jun 2012
Date Written: December 4, 2011
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