ready to forgo interest on rigid – or commitment – savings accounts to discipline their future selves. On the other, our … stylized facts from Bangladesh show that microfinance institutions pay a premium on commitment savings with respect to flexible … savings. To address this puzzle, we build an equilibrium model in which a monopolistic bank offers flexible and commitment …

coincide with a preference for commitment or dynamically inconsistent preferences. Present-bias is a special case of present …

preferences featuring temptation and self-control. The model can capture two contrasting views: the positive view, which links … increase in indebtedness. The welfare implication is strikingly dif- ferent from the standard model without temptation, which … welfare gains from a tighter borrowing limit than in 2000s, theoptimal borrowing limit is tighter according to the temptation …

This paper studies the optimal trade-off between commitment and flexibility in an intertemporal consumption … value for flexibility - but also expect to suffer from temptations - generating a value for commitment. The model combines … the representations of preferences for flexibility introduced by Kreps (1979) with its recent antithesis for commitment …

constraints, limited foresight, and partial commitment. …

credit constraints, limited foresight, and partial commitment. …