TY - JOUR
T1 - Self-control, revealed preference and consumption choice
AU - Gul, Faruk
AU - Pesendorfer, Wolfgang
N1 - Funding Information:
This research was supported by grants SES9911177, SES0236882, SES9905178 and SES0214050 from the National Science Foundation.
PY - 2004/4
Y1 - 2004/4
N2 - We provide a time-consistent model that addresses the preference reversals that motivate the time-inconsistency literature. The model subsumes the behavior generated by the time-inconsistency approach in finite settings but, unlike the time-inconsistent models, allows for self-control. This paper provides a brief summary of theoretical results shown elsewhere [Gul and Pesendorfer, Econometrica 69 (2001) 1403; Econometrica, (2002), in press; Rev. Econ. Stud. (2002), in press] and contrasts the predictions and welfare implications of our model and the time-inconsistent β-δ model.
AB - We provide a time-consistent model that addresses the preference reversals that motivate the time-inconsistency literature. The model subsumes the behavior generated by the time-inconsistency approach in finite settings but, unlike the time-inconsistent models, allows for self-control. This paper provides a brief summary of theoretical results shown elsewhere [Gul and Pesendorfer, Econometrica 69 (2001) 1403; Econometrica, (2002), in press; Rev. Econ. Stud. (2002), in press] and contrasts the predictions and welfare implications of our model and the time-inconsistent β-δ model.
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U2 - 10.1016/j.red.2003.11.002
DO - 10.1016/j.red.2003.11.002
M3 - Article
AN - SCOPUS:1842811868
SN - 1094-2025
VL - 7
SP - 243
EP - 264
JO - Review of Economic Dynamics
JF - Review of Economic Dynamics
IS - 2
ER -