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Self-control problems and the folk theorem
Södertörn University, School of Social Sciences.
2019 (English)In: Journal of Economic Behavior and Organization, ISSN 0167-2681, E-ISSN 1879-1751, Vol. 163, p. 332-347Article in journal (Refereed) Published
Abstract [en]

This paper generalizes the basic complete information pure-action folk theorem such that it applies when discounting is present-biased and the discount factor between two successive periods increases with the waiting time until the periods are reached. We distinguish between time-consistent decision makers who maximize their initial preferences and time-inconsistent decision makers who maximize their current preferences, and our folk theorem holds for both types. Since discount functions are not assumed to have any specific functional form, decision makers are said to be patient if the sum of the discount factors for all periods is large.

Place, publisher, year, edition, pages
Elsevier, 2019. Vol. 163, p. 332-347
Keywords [en]
Folk theorem, Present-biased, Discounting, Hyperbolic
National Category
Business Administration
Identifiers
URN: urn:nbn:se:sh:diva-38162DOI: 10.1016/j.jebo.2019.05.004ISI: 000474316300017Scopus ID: 2-s2.0-85065848623OAI: oai:DiVA.org:sh-38162DiVA, id: diva2:1317253
Funder
The Jan Wallander and Tom Hedelius FoundationAvailable from: 2019-05-22 Created: 2019-05-22 Last updated: 2023-03-17Bibliographically approved

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Bernergård, Axel

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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  • vancouver
  • harvard-anglia-ruskin-university
  • apa-old-doi-prefix.csl
  • sodertorns-hogskola-harvard.csl
  • sodertorns-hogskola-oxford.csl
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
  • text
  • asciidoc
  • rtf