Recent models of procrastination due to self-control problems assume that a procrastinator considers just one option and is unaware of her self-control problems. We develop a model where a person chooses from a menu of options and is partially aware of her self-control problems. This menu model...

JEL#: A12, B49, D11, D91, E21<BR> Keywords: Addiction, consumption, cooling off, misprediction, projection bias, reference dependence<BR> People underappreciate how their own behavior and exogenous factors affect their future utility, and thus exaggerate the degree to which their future preferences...

The economic conception of human behavior assumes that a person has a single set of well-defined goals, and that the person's behavior is chosen to best achieve those goals. We develop a model in which a person's behavior is the outcome of an interaction between two systems: a deliberative...

This paper discusses the discounted utility (DU) model: its historical development, underlying assumptions, and "anomalies" - the empirical regularities that are inconsistent with its theoretical predictions. We then summarize the alternate theoretical formulations that have been advanced to...