Self Control - Hoch, Loewenstein

Question 1

Time inconsistent preferences

Answer 1

• long term rational concerns vs. short term emotional factors
• situations of extreme impatience -> create desire to fulfill short term

=> deprivation = negative utility obtained from a delayed rewards (while waiting)

Question 2

Forms of deprivation

Answer 2

I - Constant - between immediate and delayed consumption

II - Transient - getting less while waiting -> reduced attention, move to different activities

III - Intensifying - feeling of hunger when not satisfied

Question 3

Shift of reference point

Answer 3

I - Physical proximity -> product displayed in store

II - Temporal proximity -> just a phone call away

III - Social comparison -> „I want that as well“

Question 4

Self-control strategies

Answer 4

Increase of Willpower

1. Precommitment
2. Time binding
3. Cost assessment/ bundling of costs
4. Higher authority

Reduce of desire

1. Avoidance
2. Postponement
3. Distraction
4. Substitution