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Previous papers on time-inconsistent procrastination assume projects are completed once begun. We develop a model in which a person chooses whether and when to complete each stage of a long-term project. In addition to procrastination in starting a project, a naive person might undertake costly...
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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...
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We investigate the role that self-control problems — modeled as time-inconsistent, present-biased preferences —and a person’s awareness of those problems might play in leading people to develop and maintain harmful addictions. Present-biased preferences create a tendency to...
Persistent link: https://www.econbiz.de/10011131483
In their model of addiction, O´Donoghue and Rabin obtain a counterintuitive result: a person that is fully aware of his self-control problems (sophisticate) is more prone to become addicted than one who is fully naware (na¨ıf). In this paper we show that this result arises from their...
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-hyperbolic discounting. When agents recognize others' naivete, as strongly suggested by empirical evidence, they revise consumption paths …, correctly anticipating prices in a resulting sliding equilibrium (perfect foresight). When agents are unaware of others' naivete …
Persistent link: https://www.econbiz.de/10013285660
We study a model of task completion with the opportunity to learn about own self-control problems over time. While the agent is initially uncertain about her future self-control, in each period she can choose to learn about it by paying a non-negative learning cost and spending one period. If...
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