Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2009

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Self-Deception and Choice

Igor Kopylov, Jawwad Noor*

Date: 2009-05-16 10:00 am – 10:30 am
Last modified: 2009-04-15

Abstract


While the literature on temptation and self-control typically views the agent as behaving strategically in order to deal with urges and desires, we view desires as using self-deception as a strategy to attain fulfillment. Desires motivate the agent to construct rationalizations that justify actions that eventually lead her into temptation: she may form of an exaggerated view of her ability for self-control, or relax her normative attitude toward indulgence. An axiomatic model of temptation-driven self-deception is presented. It is demonstrated that Gul-Pesendorfer's framework puts strong restrictions on the kind of self-deception it can accommodate. Implications of self-deception for welfare policy are derived.

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