Relationships as Commitment Devices: Strategic Silence

A. Nir

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    Abstract

    People who understand self-control problems can devise mechanisms to overcome them.In this paper, we discuss how relationships can help individuals overcome their selfcontrol problems by creating a tradeoff between desired present procrastination and undesired future procrastination.Threatening not to speak to a person who caves in can create such a tradeoff.The results depend on a limited memory assumption.We show how such interactions can explain strategic pretence, strategic ignorance, why a person would choose to punish himself after he caved in and why punishments need to increase if not adhered to immediately.
    Original languageEnglish
    Place of PublicationTilburg
    PublisherMicroeconomics
    Number of pages33
    Volume2004-49
    Publication statusPublished - 2004

    Publication series

    NameCentER Discussion Paper
    Volume2004-49

    Keywords

    • strategy
    • bias
    • behavioural science

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  • Cite this

    Nir, A. (2004). Relationships as Commitment Devices: Strategic Silence. (CentER Discussion Paper; Vol. 2004-49). Microeconomics.