Consistently inconsistent
People are often maddeningly irrational in their decisions about the future. Do not despair: rational economists are starting to explain why
ECONOMISTS have a problem with self-control. They cannot help thinking that it should not be a problem. Homo economicus always acts in his best interest, so he has no need to tie his hands to prevent himself misbehaving in future. Yet mere mortals all too often check in to fat farms or save through Christmas clubs.
This article appeared in the Finance & economics section of the print edition under the headline “Consistently inconsistent”
From the August 7th 1999 edition
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