Peysakhovich, Alexander - In: Journal of Economic Behavior & Organization 101 (2014) C, pp. 100-112
This paper studies how dual-self (Fudenberg and Levine, 2006) decision-makers can use commitment technologies to combat temptation and implement long-run optimal actions. I consider three types of commitment technologies: carrot contracts (rewards for ‘good’ behavior financed by borrowing...