Naivete about temptation and self-control: foundations for recursive naive quasi-hyperbolic discounting (Q2211477)

The paper proposes an alternative model of dynamic choice with a new definition of naivete concept. The model incorporates self-control and formal axiomatic introduction of naivete. First the authors study properties of the two-period model and after that preferences in infinite-horizon environments are investigated. The authors propose a recursive system of equations to represent naive quasi-hyperbolic discounting over time and introduce comparative measures of naivety into the proposed model. The final section of the paper contains a discussion about the scope of the introduced definition of naivete with self-control and its relations to other models beyond the linear self-control preferences presented in the literature.