%0 Report
        %A Koch, Alexander K.
%A Nafziger, Julia
        %T Commitment to Self-Rewards
        %D 2009
        %8 2009 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4049
        %U https://www.iza.org/publications/dp4049
        %X Self-administered rewards are ubiquitous. They serve as incentives for personal accomplish¬ments and are widely recommended as tools for overcoming self-control problems. However, it seems puzzling why self-rewards can work: the prospect of a reward has a motivating force only if the threat of self-denial of the reward after low performance is credible. We explain how a rational forward-looking individual may achieve commitment to self-rewards, by applying Köszegi and Rabin's (2006) model of endogenous reference point formation to a self-regulation problem. Our results show why and when self-regulation built on self-rewards can be successful and thus illustrate the power, but also the limits, of self-rewards.
        %K time inconsistency
%K self-reinforcement
%K reference-dependent preferences
%K self-control
%K motivation