self-control model

The self-control model in economics, often explored through the lens of behavioral economics, challenges the traditional assumption that individuals always act rationally and selfishly. Economist Richard Thaler, a Nobel laureate, highlights how cognitive limitations and psychological factors systematically influence economic decision-making.1

A key aspect of this model is the concept of "delay of gratification," which is the ability to resist an immediate reward for a more valuable future one. This is crucial for self-regulation. Thaler's "planner-doer" model illustrates the tension between long-term desires and short-term impulses, suggesting that effective social policy can help individuals manage this conflict, as seen in retirement savings programs like Save More Tomorrow (SMarT). This approach acknowledges that people often prioritize present experiences over future ones, impacting financial goals like saving for retirement.21