Abstract
Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended to increase personal motivation. We show that in a model with time-inconsistent and reference-dependent preferences, self-rewards can be a credible and effective tool to overcome self-control problems. We also discuss the different types of self-rewards the individual can use, such as vice goods and virtue goods, and analyze which types of goods the individual prefers.
Original language | English |
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Journal | European Economic Review |
Volume | 68 |
Pages (from-to) | 151-167 |
Number of pages | 17 |
ISSN | 0014-2921 |
DOIs | |
Publication status | Published - May 2014 |
Keywords
- Quasi-hyperbolic discounting
- Reference-dependent preferences
- Self-control
- Self-rewards
- Goals