Self Control, Revealed Preferences and Consumption Choice

We provide a time consistent model that addresses the preference reversals that motivate the time inconsistency literature. The model subsumes the behavior generated by the time-inconsistency approach in finite settings but, unlike the time-inconsistent models, allows for self-control. This paper provides a brief summary of theoretical results shown elsewhere (Gul and Pesendorfer (2001), (2002a), (2002b)) and contrasts the predictions and welfare implications of our model and the time-inconsistent beta-delta model. (Copyright: Elsevier)