Abstract
We study a two-period model where ex ante inferior choice may tempt the decision-maker in the second period. Individuals have preferences over sets of alternatives that represent second period choices. Our axioms yield a representation that identifies the individual's commitment ranking, temptation ranking, and cost of self-control. An agent has a preference for commitment if she strictly prefers a subset of alternatives to the set itself. An agent has self-control if she resists temptation and chooses an option with higher ex ante utility. We introduce comparative measures of preference for commitment and self-control and relate them to our representations.
Original language | English (US) |
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Pages (from-to) | 1403-1435 |
Number of pages | 33 |
Journal | Econometrica |
Volume | 69 |
Issue number | 6 |
DOIs | |
State | Published - 2001 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
Keywords
- Dynamic choice
- Preference for commitment
- Set betweenness