Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7242867 | Journal of Economic Behavior & Organization | 2016 | 13 Pages |
Abstract
We consider the shopping and consumption decision of an individual with a self-control problem. The consumer believes that restricting the consumption of a sinful product (such as chips) is in his long-run interest. But when facing the actual decision he is tempted to overeat. We ask how firms react to such self-control problems, and possibly exploit them, by offering different package sizes. In a competitive market, either one or three package sizes are offered. In contrast to common intuition, the large, and not the small package might be a commitment device. The latter may serve to exploit the naive consumer.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Else Gry Bro Christensen, Julia Nafziger,