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Weakness of Will and the Free-Rider Problem
Published online by Cambridge University Press: 05 December 2008
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The study of intrapersonal economic relations, or economics, is still at the programmatic stage. There is no generally accepted paradigm, or even as well-defined set of problems that constitute it as a subdiscipline within economics. Some questions are, however, emerging as foci of interest for a small but increasing number of writers, not just in economics, but also in psychology and philosophy. The writings of Thomas Schelling on self-management, of George Ainslie on self-control, and of Derik Parfit on personal identity testify to this convergence.
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References
1. The term was coined by Schelling, T. C., “Egonomics, or the Art of Self-management,” American Economic Review: Papers and Proceedings 68 (1978) 290–294Google Scholar. For references to other work by Schelling on the problem, see note 4 below.
2. See, for example, Phelps, E. S. and Pollak, R. A., “On Second-best National Saving and Game-theoretic Equilibrium Growth.” Review of Economic Studies 35 (1968) 185–199CrossRefGoogle Scholar; Ferejohn, J. and Page, T., “On the Foundations of Intertemporal Choice.” American Journal of Agricultural Economics 60 (1978) 15–21.CrossRefGoogle Scholar
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6. Compare my introduction to The Multiple Self.
7. I discuss this problem in Ulysses and the Sirens, rev. ed. Cambridge: University Press, 1984Google Scholar, Chap. II and in “Rationality and the Emotions.” Social Science Information, 24 (1985), 375–406.Google Scholar
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9. Solomon, R.L. and Corbit, J.D., “An Opponent-Process Theory of Motivation.” Psychological Review 81 (1974) 119–145CrossRefGoogle ScholarPubMed; cf. also my “Rationality and the Emotions.”
10. See again my “Rationality and the Emotions.”
11. I owe the distinction between temporal externalities and time preferences to Steedman, and Krause, , op.cit.Google Scholar
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16. This point was brought to my attention by S. K. Mirani.
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26. Compare Parfit, D., Reasons and Persons. London: Oxford University Press, 1984Google Scholar, for a discussion of do-gooders and, more generally, the psychological difficulties of fine-tuning.
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30. I owe this suggestion to A.Tversky (personal communication).
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32. For this game see Luce, R. D. and Raiffa, H., Games and Decisions. New York: Wiley, 1957, pp. 90ff., 115ffGoogle Scholar. The game derives its name from an anecdote about a husband and a wife who have to coordinate their choices about how to spend the evening. The husband would rather go to a boxing match, the wife prefers the ballet, but each would rather be with the other than ending up alone.
33. See Bowman, J., Economic Competition and Collective Action: The Politics of Market Organization in the Bituminous Coal Industry, 1880–1940. Ph.D. Thesis, Department of Political Science, University of Chicago, 1984.Google Scholar
34. For this game see Taylor, M. and Ward, H., “Chickens, Whales and Lumpy Goods: Alternative Models of Public Goods Provision.” Political Studies 30 (1982) 350–370CrossRefGoogle Scholar. It derives its name from a ritual of American juvenile culture in which two cars are on a course of head-on collision and the first to “chicken out” has lost.
35. Schelling, T. C., The Strategy of Conflict. Cambridge: Harvard University Press, 1963, Chap. 2Google Scholar. The difficulty of finding focal points has been emphasized by Raiffa, H., The Art and Science of Negotiations. Cambridge: Harvard University Press, 1982, p. 54Google Scholar: “One person's symmetry is frequently another's asymmetry, and the discussion of what is symmetrical can be divisive.”
36. Davidson, , op.cit.Google Scholar, Chap.2. An alternative account is proposed by Pears, , op.cit.Google Scholar
37. Russell, R., Bird Lives: The High Life and Hard Times of Charlie Parker. New York: Charterhouse, 1973.Google Scholar
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39. For an instructive discussion of phobia see Beck, A., Cognitive Therapy and the Emotional Disorders. New York: International Universities Press, 1976, Chap.7.Google Scholar
40. I owe this observation to A. Schotter.
41. The problem inherent in this assumption is brought out if we ask who is to carry out the comparison. My neglect of this difficulty is perhaps the main gap in the present argument. I hope to be able to confront it on another occasion.
42. Solomon, and Corbit, , op.cit.Google Scholar
43. The pattern may not be feasible if the initial benefits from the noxious activity or the rapidity of damage depends on chronological age.
44. See the articles by Schelling cited in note 4 as well as my Ulysses and the Sirens, Chap.II, for discussion of various extrapsychic devices for self-control.
45. For a discussion of framing see Tversky, A. and Kahneman, D., “The Framing of Decisions and the Rationality of Choice.” Science 211 (1981) 453–458.CrossRefGoogle Scholar
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50. See Ulysses and the Sirens, Chap.II. Compare also the following paradox of precom-mitment: “Can a democratic government credibly commit itself to adhere to a policy no matter what its consequences-to guarantee that the monetary base will not be allowed to grow faster than x%, even if the optimists should turn out to be wrong, and the policy leads to massive unemployment and idle capacity quickly, and slows down inflation only gradually? Catch 22: maybe the theory is right, but the only way to test it is to convince people that the government would persist even if it is wrong.” Bator, F., “The Sins of Wages.” The Economist 21 (1981) 24.Google Scholar
51. Ainslie, G., “A Behavioral Economic Approach to the Defense Mechanisms.”Google Scholar
52. On loose bunching see Ainslie, ibid, and Schelling, T. C., “Imposing Enforceable Rules on Oneself.” Unpublished.Google Scholar
53. On the issue of autonomy versus welfare, see my Sour Grapes, Chap.III.
54. Ainslie, G., “A Behavioral Economic Approach to the Defense Mechanisms,” drawing on Schelling, The Strategy of Conflict.Google Scholar
55. I am grateful to R. Hardin for bringing this possibility to my attention.
56. For the theory of iterated Prisoner's Dilemmas, see Taylor, M., Anarchy and Cooperation. Chichester: Wiley, 1976Google Scholar; Axelrod, R., The Evolution of Cooperation. New York: Basic Books, 1984.Google Scholar
57. The conditions given in Taylor, , Anarchy and Cooperation, for conditional cooperation in n−person Prisoner's Dilemmas are such as to make it unlikely to come about except by accident.Google Scholar
58. There is no incentive to cooperate in a game known to be the last, since there will be no future games in which retaliation or reciprocation could be forthcoming. This also implies that there is no incentive to cooperate in the penultimate game, since the behavior in the last game is already given, and so on back to the first game.
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