Article citationsMore>>
Koch, A.K., Nafziger, J., Suvorov, A. and Ven. J. (2014) Self-Reward and Personal Motivation. European Economic Review, 68, 15-167. http://dx.doi.org/10.1016/j.euroecorev.2014.03.002
has been cited by the following article:
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TITLE:
Reference-Dependent Consumption with Endogenous Labor Supply
AUTHORS:
Lin Zhang
KEYWORDS:
Reference-Dependent Preference, Endogenous Labor Supply, Time Consistency, Self-Control
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.4,
August
5,
2015
ABSTRACT: This paper investigates
time-consistent plans by incorporating the reference-dependent consumption
model with endogenous labor supply. To what extent these plans can help the
consumer overcome the double self-control problems of over-consumption and
late-retirement is discussed. The consumption level and labor supply of the
preferred personal equilibrium solution are compared with those of ex-ante
optimal solution and present-biased solution. For all preferred personal
equilibrium plans, both consumption level and labor supply are lower than those
of the consumer who is present-biased but without reference-dependent
preference. Although the preferred personal equilibrium solutions do not
include the ex-ante optimal level, they help mitigate the welfare loss caused
by present bias.