Bad Temptation

28 Pages Posted: 2 Mar 2018 Last revised: 5 Jan 2021

See all articles by Doron Ravid

Doron Ravid

University of Chicago - Department of Economics

Kai Steverson

New York University (NYU)

Date Written: September 25, 2020

Abstract

We study a static self-control model in which an agent's preference, temptation ranking, and cost of self-control drive her choices among a finite set of options. We show that it is without loss to assume that the agent's temptation ranking is the opposite of her preference. We characterize the model by relaxing the Weak Axiom of Revealed Preference (WARP), and exploit WARP violations to identify the model's parameters.

Keywords: Temptation, Self-Control, Weak Axiom of Revealed Preference, Intransitive Preferences

JEL Classification: D01, D11

Suggested Citation

Ravid, Doron and Steverson, Kai, Bad Temptation (September 25, 2020). Journal of Mathematical Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3127575 or http://dx.doi.org/10.2139/ssrn.3127575

Doron Ravid

University of Chicago - Department of Economics ( email )

1126 E. 59th St
Chicago, IL 60637
United States

Kai Steverson (Contact Author)

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

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