Theoretical Economics 5 (2010), 127–158
Jawwad Noor, Norio Takeoka
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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