Addiction, present‐bias, and self‐restraint.
We study the economic rationale for people to engage in self‐restraint. Specifically, we show that when a good is addictive and harmful, forward‐looking present‐biased consumers have an incentive to restrict their current consumption—below the level at which marginal utility of consumption equals ma...
| Publicado en: | Southern Economic Journal Vol. 89; no. 1; pp. 138 - 160 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jul2022
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=157892644&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 157892644 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jul2022 vid: 89 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 157892644 10.1002/soej.12586 ppf: 138 ppct: 22 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 2.3MB tig: atl: Addiction, present‐bias, and self‐restraint. aug: au: Jin, Lawrence Kang, Minwook affil: Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore, Singapore Department of Economics, Korea University, Seoul, South Korea su: Addictions Consumers Excise tax Direct costing sug: subj: Addictions Consumers Excise tax Direct costing keyword: addiction hyperbolic discounting present‐bias self‐restraint addiction hyperbolic discounting present‐bias self‐restraint ab: We study the economic rationale for people to engage in self‐restraint. Specifically, we show that when a good is addictive and harmful, forward‐looking present‐biased consumers have an incentive to restrict their current consumption—below the level at which marginal utility of consumption equals marginal cost—in order to curb their future consumption of the harmful good. If the incentive is sufficiently strong, then present bias may encourage consumers to consume less of the addictive bad today. Finally, we show that a self‐restraint incentive can coexist with a sin tax on the addictive bad. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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