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- W2144066638 abstract "We study consumption/saving decisions in an environment in which agents face a conflict between present and future utility which may require self-control for its resolution. We derive behavioral foundations for our analysis of self-control from the cognitive sciences, and in particular from the study of cognitive control in ‘delayed response’ tasks. In our model, self-control requires the activation in working memory of a consumption/saving goal, and is therefore costly in terms of cognitive capacity. Dynamic decision making involves setting ex-ante a saving goal and then deciding when to exercise self-control ex-post, that is, when to inhibit stochastic consumption impulses (temptations) and adhere to the goal. Our analysis of consumption/savings decisions is novel in terms of its foundations and its recognition of the agents’ ability to self-control; it has markedly dierent implications" @default.
- W2144066638 created "2016-06-24" @default.
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- W2144066638 date "2002-01-01" @default.
- W2144066638 modified "2023-09-26" @default.
- W2144066638 title "Self-Control and Consumption-Saving Decisions: Cognitive Perspectives" @default.
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