Abstract
Goals are an important motivator. But little is known about why and how people set them. We address this issue in a model based on two stylized facts. i) Goals serve as reference points for performance. ii) Present-biased preferences create self-control problems. We show the power and limits of self-regulation through goals. Goals increase an individual's motivation - but only up to a certain point. And they are painful self-disciplining devices. Greater self-control problems may result in tougher goals; but for a severe present bias goals either lack motivating force, or are too painful to be accepted.
Original language | English |
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Journal | The Scandinavian Journal of Economics |
Volume | 113 |
Issue | 1 |
Pages (from-to) | 212-227 |
ISSN | 0347-0520 |
DOIs | |
Publication status | Published - 2011 |
Keywords
- Goals
- Self-control
- Motivation
- Time inconsistency
- Psychology