TY  - RPRT
        AU  - Cobb-Clark, Deborah A.
AU  - Dahmann, Sarah C.
AU  - Kamhöfer, Daniel A.
AU  - Schildberg-Hörisch, Hannah
        TI  - Sophistication about Self-Control
        PY  - 2021/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14609
        UR  - https://www.iza.org/publications/dp14609
        AB  - We propose a broadly applicable empirical approach to classify individuals as time-consistent versus naïve or sophisticated regarding their self-control limitations. Operationalizing our approach based on nationally representative data reveals that self-control problems are pervasive and that most people are at least partly aware of their limited self-control. Compared to naïfs, sophisticates have higher IQs, better educated parents, and are more likely to take up commitment devices. Accounting for both the level and awareness of self-control limitations has predictive power beyond one-dimensional notions of self-control that neglect awareness. Importantly, sophistication fully compensates for self-control problems when choices involve immediate costs and later benefits. Raising people's awareness of their own self-control limitations may thus assist them in overcoming any adverse consequences.
        KW  - commitment devices
KW  - naïveté
KW  - sophistication
KW  - self-control
KW  - present bias
        ER  -