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presents a welfare analysis of energy policies that is based on a behavioral model of temptation and self-control, introduced … by Gul and Pesendorfer [23,24]. We find that, in the presence of temptation, (i) Pigovian taxes alone do not yield a …
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This paper extends the theory of temptation and self-control introduced by Gul and Pesendorfer (2001) to allow for … increasing marginal costs of resisting temptation, that is, convex self-control costs. It also proves a representation theorem …
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Many have argued that digital technologies such as smartphones and social media are addictive. We develop an economic model of digital addiction and estimate it using a randomized experiment. Temporary incentives to reduce social media use have persistent effects, suggesting social media are...
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