Optimal Contracts for Time-Inconsistent Consumers with Heterogeneous Beliefs

Published Online:https://doi.org/10.1287/mnsc.2022.02653

References

  • Akerlof GA (1991) Procrastination and obedience. Amer. Econom. Rev. 81(2):1–19.Google Scholar
  • Baron DP, Besanko D (1984) Regulation and information in a continuing relationship. Inform. Econom. Policy 1(3):267–302.CrossrefGoogle Scholar
  • Bolton P, Dewatripont M (2005) Contract Theory (MIT Press, Cambridge, MA).Google Scholar
  • Courty P, Li H (2000) Sequential screening. Rev. Econom. Stud. 67(4):697–717.CrossrefGoogle Scholar
  • DellaVigna S, Malmendier U (2004) Contract design and self-control: Theory and evidence. Quart. J. Econom. 119(2):353–402.CrossrefGoogle Scholar
  • DellaVigna S, Malmendier U (2006) Paying not to go to the gym. Amer. Econom. Rev. 96(3):694–719.CrossrefGoogle Scholar
  • Eliaz K, Spiegler R (2006) Contracting with diversely naive agents. Rev. Econom. Stud. 73(3):689–714.CrossrefGoogle Scholar
  • Ellison G (2006) Bounded rationality in industrial organization. Econom. Soc. Monographs 42:142.Google Scholar
  • Esteban S, Miyagawa E (2006) Temptation, self-control, and competitive nonlinear pricing. Econom. Lett. 90(3):348–355.CrossrefGoogle Scholar
  • Esteban S, Miyagawa E, Shum M (2007) Nonlinear pricing with self-control preferences. J. Econom. Theory 135(1):306–338.CrossrefGoogle Scholar
  • Freeman DJ (2021) Revealing naïveté and sophistication from procrastination and preproperation. Amer. Econom. J. Microeconom. 13(2):402–438.CrossrefGoogle Scholar
  • Gabaix X, Laibson D (2006) Shrouded attributes, consumer myopia, and information suppression in competitive markets. Quart. J. Econom. 121(2):505–540.CrossrefGoogle Scholar
  • Galperti S (2015) Commitment, flexibility, and optimal screening of time inconsistency. Econometrica 83(4):1425–1465.CrossrefGoogle Scholar
  • Garon JD, Masse A, Michaud PC (2015) Health club attendance, expectations and self-control. J. Econom. Behav. Organ. 119:364–374.CrossrefGoogle Scholar
  • Gottlieb D (2008) Competition over time-inconsistent consumers. J. Public Econom. Theory 10(4):673–684.CrossrefGoogle Scholar
  • Gottlieb D, Zhang X (2021) Long-term contracting with time-inconsistent agents. Econometrica 89(2):793–824.CrossrefGoogle Scholar
  • Grubb MD (2009) Selling to overconfident consumers. Amer. Econom. Rev. 99(5):1770–1807.CrossrefGoogle Scholar
  • Guo L (2015) Inequity aversion and fair selling. J. Marketing Res. 52(1):77–89.CrossrefGoogle Scholar
  • Guo L (2023) The mnemonomics of contractual screening. Management Sci. 69(3):1739–1757.LinkGoogle Scholar
  • Heidhues P, Kőszegi B (2010) Exploiting naivete about self-control in the credit market. Amer. Econom. Rev. 100(5):2279–2303.CrossrefGoogle Scholar
  • Heidhues P, Kőszegi B (2017) Naivete-based discrimination. Quart. J. Econom. 132(2):1019–1054.CrossrefGoogle Scholar
  • Heidhues P, Kőszegi B (2018) Behavioral Industrial Organization (Elsevier, New York).CrossrefGoogle Scholar
  • Ho TH, Lim N, Camerer CF (2006) Modeling the psychology of consumer and firm behavior with behavioral economics. J. Marketing Res. 43(3):307–331.CrossrefGoogle Scholar
  • Kuksov D, Wang K (2014) The bright side of loss aversion in dynamic and competitive markets. Marketing Sci. 33(5):693–711.LinkGoogle Scholar
  • Laibson D (1997) Golden eggs and hyperbolic discounting. Quart. J. Econom. 112(2):443–478.CrossrefGoogle Scholar
  • Li L, Jiang L (2022) How should firms adapt pricing strategies when consumers are time-inconsistent? Production Oper. Management 31(9):3457–3473.CrossrefGoogle Scholar
  • Li S, Yan J, Xiao B (2014) Contract design and self-control with asymmetric information. Econom. Inquiry 52(2):618–624.CrossrefGoogle Scholar
  • Lim N (2010) Social loss aversion and optimal contest design. J. Marketing Res. 47(4):777–787.CrossrefGoogle Scholar
  • Lim N, Ho TH (2007) Designing price contracts for boundedly rational customers: Does the number of blocks matter? Marketing Sci. 26(3):312–326.LinkGoogle Scholar
  • Maskin E, Riley J (1984) Monopoly with incomplete information. RAND J. Econom. 15(2):171–196.CrossrefGoogle Scholar
  • Mussa M, Rosen S (1978) Monopoly and product quality. J. Econom. Theory 18(2):301–317.CrossrefGoogle Scholar
  • Myerson RB (1981) Optimal auction design. Math. Oper. Res. 6(1):58–73.LinkGoogle Scholar
  • O’Donoghue T, Rabin M (1999a) Doing it now or later. Amer. Econom. Rev. 89(1):103–124.CrossrefGoogle Scholar
  • O’Donoghue T, Rabin M (1999b) Incentives for procrastinators. Quart. J. Econom. 114(3):769–816.CrossrefGoogle Scholar
  • Phelps ES, Pollak RA (1968) On second-best national saving and game-equilibrium growth. Rev. Econom. Stud. 35(2):185–199.CrossrefGoogle Scholar
  • Quah JKH, Strulovici B (2013) Discounting, values, and decisions. J. Political Econom. 121(5):896–939.CrossrefGoogle Scholar
  • Strotz RH (1955) Myopia and inconsistency in dynamic utility maximization. Rev. Econom. Stud. 23(3):165–180.CrossrefGoogle Scholar
  • Wu Y, Ramachandran K, Krishnan V (2014) Managing cost salience and procrastination in projects: Compensation and team composition. Production Oper. Management 23(8):1299–1311.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.