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Sweet self-deception

Sommervoll, Dag Einar
Journal article, Peer reviewed
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URI
http://hdl.handle.net/11250/93930
Date
2013
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  • Scientific articles [1334]
Original version
http://dx.doi.org/10.1007/s00712-012-0308-2
Abstract
People have a tendency to procrastinate when faced with aversive tasks - but they

also procrastinate in relation to beneficial matters whose rewards are instantaneous.

If agents value present anticipations of future consumption, revision of consumption

plans may be viewed as a benign form of self-deception. We consider a minimal

generalization of the Samuelson discounted utility model to allow for utility linked

to next period consumption. Agents are assumed to vary with respect to their

sophistication. In this context, commitment and self-control are obstacles to the

pursuit of increased utility. We also examine different environments that are likely

to facilitate repeated revisions.
Description
The final publication is available at www.springerlink.com
Publisher
Springer
Journal
Journal of Economics

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