TY  - RPRT
        AU  - Koch, Alexander K.
AU  - Nafziger, Julia
        TI  - Commitment to Self-Rewards
        PY  - 2009/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4049
        UR  - https://www.iza.org/publications/dp4049
        AB  - 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.
        KW  - time inconsistency
KW  - self-reinforcement
KW  - reference-dependent preferences
KW  - self-control
KW  - motivation
        ER  -