licenses induce only sophisticated individuals with low levels of self-control problems to consume optimally. The consumption … of naive individuals as well as sophisticated individuals with severe self-control problems remains too high, and welfare … in equilibrium is decreasing in the level of self-control problems and non-increasing in the level of naivete. Further …

We introduce a new probabilistic method for solving a class of impulse control problems based on their representations …

This paper analyzes the welfare effects of trade liberalization when some individuals suffer from self-control problems …, individuals with self-control problems can lose in both countries. In contrast to the Ricardian setting, even individuals without … self-control problems can lose if the average self-control problem is stronger in their country than in the country they …

people do not have self-control problems. If either or both of these postulates do not apply, we cannot obtain a testable … individual characteristics such as forward-looking behavior, experience of self-control problems, and use of commitment devices … to overcome self-control problems. First, we test the rational expectations hypothesis and find that it holds for the …