Present-Focused Preferences and Sin Goods Consumption at the Extensive and Intensive Margins

Arbeitspapier

This paper analyzes sin goods consumption when individuals exhibit present-focused preferences. It considers three types of present focus: present-bias with varying degrees of naiveté, Gul-Pesendorfer preferences, and a dual-self approach. We investigate the incentives to deviate from healthy consumption (the extensive margin). In the first model, the extensive margin of consumption is independent of the degree of present-bias and naiveté. Likewise, in the latter frameworks, the strength of temptation and the cost of self-control do not affect the extensive margin. Hence, present-focused preferences affect the intensive margin of sin goods consumption, but not the extensive margin.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 8237

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Theory ; Intertemporal Household Choice; Life Cycle Models and Saving ; Welfare Economics: General ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Health Behavior
• Subject: present-bias ; self-control ; temptation ; dual-self ; sin goods

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kalamov, Zarko ; Runkel, Marco
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/216633
• Last update: 10.03.2025, 11:43 AM CET