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This paper studies optimal nonlinear pricing for a monopolist when consumers' preferences exhibit temptation and self …-control as in Gul and Pesendorfer (2001a). Consumers are subject to temptation inside the store but exercise self-control, and … those foreseeing large self-control costs do not enter the store. Consumers differ in their preferences under temptation …
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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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, the strength of temptation and the cost of self-control do not affect the extensive margin. Hence, present …
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