TEMPTATION, WILLPOWER, AND THE PROBLEM OF RATIONAL SELF-CONTROL

This article develops a model of consumption when individuals maximize utility knowing that they will experience varying levels of temptatio n and willpower over time. Examination of the optimal consumption path reveals that consumers may resist temptation by altering their consum ption path. This can generate consumption patterns that mimic time pre ference even when no underlying time preferences exist. Self-control s trategies to increase consumer welfare, such as precommitment and publ ic side bets, are shown to derive directly from the model.