Title Page, Copyright Page

pdf iconDownload PDF
 

Contents

pdf iconDownload PDF

pp. v-vi

Contributors

pdf iconDownload PDF

pp. vii-viii

read more

Preface

pdf iconDownload PDF

pp. ix-xxiv

Daily life requires frequent trade-offs between costs and benefits that occur at different points in time. To sleep late or rise early, munch snacks or eat a healthy lunch, buy the snazzy sports car or the reliable sedan, get a job or go to college, risk pregnancy or use a contraceptive- these...

Part 1. Historical Overview

pdf iconDownload PDF

pp. 1-2

read more

1. The Fall and Rise of Psychological Explanations in the Economics of Intertemporal Choice

pdf iconDownload PDF

pp. 3-34

In recent years, despite lingering skepticism, the influence of psychology on economics has steadily expanded. Challenged by the discovery of individual and market level phenomena that contradict fundamental economic assumptions, and impressed by theoretical...

read more

2. Intertemporal Choice and Political Thought

pdf iconDownload PDF

pp. 35-54

Most work on intertemporal choice has been done within philosophy, psychology, and economics. Much of it is surveyed elsewhere in this book. In this chapter I discuss how issues of myopia, deferred gratification, and self-control have been discussed within...

Part 2. General Perspectives

pdf iconDownload PDF

pp. 55-56

read more

3. Hyperbolic Discounting

pdf iconDownload PDF

pp. 57-92

Of the many striking psychiatric syndromes known to man, the most dramatic is the multiple, or split, personality. Unrelated to coincidentally named schizophrenia, the ego-splitting of multiplepersonality disorder confronts its sufferers with sudden shifts of values...

read more

4. Irrationality, Impulsiveness, and Selfishness as Discount Reversal Effects

pdf iconDownload PDF

pp. 93-118

Imagine two rewards, one clearly preferable to the other-for instance, a large candy bar versus a small candy bar-offered to a child. As long as the large and small candy bars are offered at the same time, the child prefers the large one. Imagine that the preferred reward was not available until tomorrow. The child may well prefer...

read more

5. Anomalies in Intertemporal Choice: Evidence and an Interpretation

pdf iconDownload PDF

pp. 119-146

Since its introduction by Samuelson in 1937, the discounted utility model (DU) has dominated economic analyses of intertemporal choice. In its most restrictive form, the model states that a sequence of consumption levels...

read more

6. Delay in Gratification in Children

pdf iconDownload PDF

pp. 147-164

For almost a century the infant has been characterized as impulse-driven, pressing for tension reduction, unable to delay gratification, oblivious to reason and reality, and ruled entirely by a pleasure principle that demands immediate satisfaction (Freud, 1959)...

Part 3. Self-Control

pdf iconDownload PDF

pp. 165-166

read more

7. Self-Command: A New Discipline

pdf iconDownload PDF

pp. 167-176

In a cocaine addiction center in Denver, patients are offered an opportunity to submit to extortion. They may write a self-incriminating letter, preferably a letter confessing their drug addiction, deposit the letter with the clinic, and submit to a randomized...

read more

8. Self-Control

pdf iconDownload PDF

pp. 177-210

Chapter 3 presents evidence that a person does not "have" a preference, in the sense of a disposition to choose that is stable unless acted upon. Viewed over even short periods of time, he is a population of successive preferences. We argue in that chapter that successively...

Part 4. Internalities

pdf iconDownload PDF

pp. 211-212

read more

9. Utility from Memory and Anticipation

pdf iconDownload PDF

pp. 213-234

Although not a central focus of economics, the idea that people derive pleasure and pain from other people's experiences is widely accepted by economists. Duesenberry's "relative income hypothesis,"1 Leibenstein's "bandwagon, snob and Veblen effects,"2 Robert...

read more

10. Melioration

pdf iconDownload PDF

pp. 235-264

Economic theory assumes that people's choices are efficient, in the sense that they can be interpreted as, flowing from constrained maximization of a well-defined objective function. However, a growing body of evidence from both human and animal choice experiments points to...

read more

11. The Role of Moral Sentiments in the Theory of Intertemporal Choice

pdf iconDownload PDF

pp. 265-284

The standard neoclassical theory of intertemporal choice begins with the assumption that people are rational, which means that they act as if trying to maximize a discounted flow of utility. At least two types of rationality are distinguished according to the types of motives...

Part 5. Applications and Extensions

pdf iconDownload PDF

pp. 285-286

read more

12. Mental Accounting, Saving, and Self-Control

pdf iconDownload PDF

pp. 287-330

Modigliani and Brumberg's life-cycle theory of saving (1954) (and the similar permanent income hypothesis by Milton Friedman [1957]) is a classic example of economic theorizing. The life-cycle (LC) model makes some simplifying assumptions in order to be able to...

read more

13. A Theory of Addiction

pdf iconDownload PDF

pp. 331-360

The complexity of addiction is mirrored in the many disciplines that study it. The chemistry of addictive substances falls in the domain of biochemistry, tolerance and withdrawal belong to physiology; various personality or hereditary predispositions, and the role of...

read more

14. Rational Addiction and the Effect of Price on Consumption

pdf iconDownload PDF

pp. 361-370

Legalization of such substances as marijuana, heroin, and cocaine surely will reduce the prices of these harmful addictive drugs. By the law of the downward-sloping demand function, their consumption will rise, but by how much? According to conventional...

read more

15. Frames of Reference and the Intertemporal Wage Profile

pdf iconDownload PDF

pp. 371-382

In this chapter, I argue that context has important implications for intertemporal consumption allocations, and for the design of the economic institutions that help support these allocations. More specifically, I will argue that intrapersonal consumption comparisons...

Index

pdf iconDownload PDF

pp. 383-400