Three essays on the economics of self control

With the rapid development of a combination of psychology and economic studies, more and more aspects of psychological phenomena have been plunged into economic contexts. Through theoretical modelling, empirical analysis, and personality studies, this thesis studies the interplay between individual decision-making, self-control, and economic outcomes. It is structured into three chapters, each focusing on a distinct aspect of self-control and its implications. The first chapter, titled "A Model of Multiple Selves," introduces a model dividing an individual into a central executive system (Ego) and two sub-selves: the rational self (Cold) and the impulsive self (Hot). Ego allocates resources between the sub-selves but lacks its own preferences. The analysis shows that Ego's optimal allocation prevents either sub-self from achieving its preferred bundle, resulting in more extreme choices by the sub-selves than if they controlled all resources independently. The second chapter, "Revealed self-control: Cultural Difference in the New Year's Resolution of UK and China," investigates self-control behaviours after festive indulgence in the UK and China using search trend data. Search trends for healthy lifestyle keywords increase after Christmas (especially the new year) in the UK, reflecting a rebound in self-control. In contrast, no similar pattern is observed after major Chinese festivals, highlighting cultural differences in self-regulation. The third chapter, titled "The Effect of Personality Traits and self control on Wages," focuses on the relationships between personality traits, self-control, and wages. Based on data from the Household, Income, and Labour Dynamics in Australia (HILDA) Survey and the Big Five personality traits framework, the study uses factor analysis and regressions to identify key influences. The findings highlight that traits such as Neuroticism, Conscientiousness, and Extroversion positively correlate with higher wages, while Agreeableness has a negative correlation. Moreover, self control has a significantly positive impact on wage levels, emphasizing its role in economic success.