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The Economics of Self-Destructive Choices

  • Elucidates theoretically why people make self-destructive decisions bringing small immediate satisfaction at huge future costs and suggests how to improve decision making

  • Provides empirically validating evidence that intemperate, biased preferences actually relate to self-destructive behavior and decisions

  • Explains the paradoxical possibility that present biased preferences lead not to intemperance but to excessive temperance, such as anorexia nervosa, preproperation and stinginess

Book

Part of the Advances in Japanese Business and Economics book series (AJBE, volume 10)

Table of contents

  1. Front Matter
    Pages i-xv
  2. Shinsuke Ikeda
    Pages 1-23
  3. Shinsuke Ikeda
    Pages 25-42
  4. Shinsuke Ikeda
    Pages 67-111
  5. Shinsuke Ikeda
    Pages 153-180
  6. Back Matter
    Pages 181-191

About this book

Introduction

Based on recent advances in economics, especially those in behavioral economics, this book elucidates theoretically and empirically the mechanism of time-inconsistent decision making that leads to various forms of self-destructive behavior. The topics include over-eating and obesity, over-spending, over-borrowing, under-saving, procrastination, smoking, gambling, over-drinking, and other intemperate behaviors, all of which relate to serious social problems in advanced countries.

In this book, the author attempts to construct a bridge between the basic theory of time discounting, especially as of hyperbolic discounting, and empirically observed “irrational (non-classical)” behavior in the various contexts just mentioned. The empirical validity of the theory is discussed using unique micro data a

s well as public macro data. The book proposes prescriptions for individual decision makers, whether sophisticated or naïve, to make better choices in self-control problems, and also provides policy makers with useful advice for influencing people’s decision making in the right directions.

This work is recommended not only to general readers who seek to learn how to attain better self-regulation under self-control problems. It also helps researchers who seek an overview of positive and normative implications of hyperbolic discounting, and thereby reconstruct economic theory for a better understanding of actual human behavior and the resulting economic dynamics

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Keywords

Behavioral economics Decision making Hyperbolic discounting Self Control Time inconsistency

Authors and affiliations

  1. 1.Osaka UniversityInst. of Soc. and Econ. ResearchIbarakiJapan

About the authors

Shinsuke Ikeda is a professor at the Institute of Social and

Economic Research (ISER), Osaka University, and serves as the director of the Research Centre of Behavioral Economics in ISER. He received a B.Com. at Kobe University in 1980 and a Ph.D. (economics) at Osaka University in 1997. He is the former president of the Association of Behavioral Economics and Finance. Dr. Ikeda has published articles on behavioral economics, macroeconomic dynamics, and asset pricing in the Journal of Finance, Journal of Health Economics, Journal of International Economics, Journal of Monetary Economics, and the International Economic Review, among others. With H. Kato, F. Ohtake, and Y. Tsutsui, he has jointly edited two volumes on behavioral economics: Behavioral Economics of Preferences, Choices, and Happiness (Springer, 2015, forthcoming); and Behavioral Interactions, Markets, and Economic Dynamics: Topics in Behavioral Economics (Springer, 2015, forthcoming).

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Bibliographic information

  • Book Title The Economics of Self-Destructive Choices
  • Authors Shinsuke Ikeda
  • Series Title Advances in Japanese Business and Economics
  • Series Abbreviated Title Advances Japanese Business Economics
  • DOI https://doi.org/10.1007/978-4-431-55793-7
  • Copyright Information Springer Japan 2016
  • Publisher Name Springer, Tokyo
  • eBook Packages Economics and Finance Economics and Finance (R0)
  • Hardcover ISBN 978-4-431-55792-0
  • Softcover ISBN 978-4-431-56694-6
  • eBook ISBN 978-4-431-55793-7
  • Series ISSN 2197-8859
  • Series E-ISSN 2197-8867
  • Edition Number 1
  • Number of Pages XV, 191
  • Number of Illustrations 8 b/w illustrations, 37 illustrations in colour
  • Topics Economics, general
  • Buy this book on publisher's site
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