Theoretical Economics, Volume 5, Number 2 ( 2010)

Theoretical Economics 5 (2010), 127–158


Uphill self-control

Jawwad Noor, Norio Takeoka

Abstract


This paper extends the theory of temptation and self-control introduced by Gul and Pesendorfer (2001) to allow for increasing marginal costs of resisting temptation, that is, convex self-control costs. It also proves a representation theorem that admits a general class of self-control cost functions. Both models maintain the Order, Continuity and Set-Betweenness axioms but violate Independence.

Keywords: Temptation, self-control, non-linear self-control costs

JEL classification: D11

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