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This paper addresses the role of non-binding goals to attenuate time inconsistency. Present-biased agents have linear reference-dependent preferences and endogenously set a goal that is the reference point. They face an infinite horizon, optimal stopping problem in continuous time, where there exists an option value of waiting due to uncertainty. When there(More)
This paper addresses the role of non-binding goals to attenuate time inconsistency. Agents have linear reference-dependent preferences and endogenously set a goal that is the reference point. They face an infinite horizon, optimal stopping problem in continuous time, where there exists an option value of waiting due to uncertainty. Goal-setting attenuates(More)
This paper shows that non-binding, personal goal setting can act as an effective mechanism to induce energy efficiency and conservation actions in the residential sector. We evaluate a large-scale implementation of an energy efficiency program in Northern Illinois and conclude that, on average, households saved approximately 4.4%. However, savings are(More)
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