Self-Control and the Supply of Effort

This paper reviews the existing literature on self-control problems with effort. The theoretical roots of self-control problems lie in time-inconsistent preferences such as hyperbolic discounting or present bias. Alternative modeling possibilities such as dualself models are discussed. In laboratory and field experiments, self-control problems are pervasive, but subjects tend to be only partially sophisticated about the extent of their problem. Solutions such as commitment devices tend to work well in inducing additional effort, but take-up rates are typically low. Opportunities for future work on this topic are discussed, including theoretical extensions and novel solutions to self-control problems with effort.