Rules and temptations: which came first?
<p dir="ltr">For received theories, (suboptimal) temptations arise first, and, consequently, people set up rules or institutions to control them. Hence, any deviation from institutions is suboptimal. However, these received theories face an anomaly, coined here the ‘Holiday License P...
محفوظ في:
| المؤلف الرئيسي: | |
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| منشور في: |
2026
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| الموضوعات: | |
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إضافة وسم
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| _version_ | 1864513522620170240 |
|---|---|
| author | Elias L. Khalil (5946299) |
| author_facet | Elias L. Khalil (5946299) |
| author_role | author |
| dc.creator.none.fl_str_mv | Elias L. Khalil (5946299) |
| dc.date.none.fl_str_mv | 2026-02-19T09:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1017/s1744137426100411 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Rules_and_temptations_which_came_first_/31420751 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Economics Applied economics Psychology Social and personality psychology dual process theory heuristics holiday licences (cheat days) present-bias preferences principal-agent framework puritan lifestyle self-deception temerity (overconfidence) |
| dc.title.none.fl_str_mv | Rules and temptations: which came first? |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p dir="ltr">For received theories, (suboptimal) temptations arise first, and, consequently, people set up rules or institutions to control them. Hence, any deviation from institutions is suboptimal. However, these received theories face an anomaly, coined here the ‘Holiday License Paradox’: Why would people who adopt optimal institutions turn around and designate ‘holidays’ (cheat days) that allow them to indulge in suboptimal consumption? To solve this paradox, this paper reverses the entry point: people first set up rules – whereas temptations are identifiable only with respect to those rules. This solution raises a new question: what is the origin of rules? People adopt rules to control ‘temerity’, i.e., overconfidence. This raises a further question: what is the origin of temerity? Temerity is a default heuristic expressing the optimal response in life-and-death decisions. Thus, temerity-as-heuristics is rather efficient on average. However, temerity can become excessive, and, at second approximation, people adopt rules to control temerity. Once we regard rules or institutions to come first, i.e., prior to temptations, it becomes possible to solve the Holiday License Paradox.</p><h2 dir="ltr">Other Information</h2><p dir="ltr">Published in: Journal of Institutional Economics<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1017/s1744137426100411" target="_blank">https://dx.doi.org/10.1017/s1744137426100411</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_fa0626427d03dfcf97881b88e9abb398 |
| identifier_str_mv | 10.1017/s1744137426100411 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/31420751 |
| publishDate | 2026 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Rules and temptations: which came first?Elias L. Khalil (5946299)EconomicsApplied economicsPsychologySocial and personality psychologydual process theoryheuristicsholiday licences (cheat days)present-bias preferencesprincipal-agent frameworkpuritan lifestyleself-deceptiontemerity (overconfidence)<p dir="ltr">For received theories, (suboptimal) temptations arise first, and, consequently, people set up rules or institutions to control them. Hence, any deviation from institutions is suboptimal. However, these received theories face an anomaly, coined here the ‘Holiday License Paradox’: Why would people who adopt optimal institutions turn around and designate ‘holidays’ (cheat days) that allow them to indulge in suboptimal consumption? To solve this paradox, this paper reverses the entry point: people first set up rules – whereas temptations are identifiable only with respect to those rules. This solution raises a new question: what is the origin of rules? People adopt rules to control ‘temerity’, i.e., overconfidence. This raises a further question: what is the origin of temerity? Temerity is a default heuristic expressing the optimal response in life-and-death decisions. Thus, temerity-as-heuristics is rather efficient on average. However, temerity can become excessive, and, at second approximation, people adopt rules to control temerity. Once we regard rules or institutions to come first, i.e., prior to temptations, it becomes possible to solve the Holiday License Paradox.</p><h2 dir="ltr">Other Information</h2><p dir="ltr">Published in: Journal of Institutional Economics<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1017/s1744137426100411" target="_blank">https://dx.doi.org/10.1017/s1744137426100411</a></p>2026-02-19T09:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1017/s1744137426100411https://figshare.com/articles/journal_contribution/Rules_and_temptations_which_came_first_/31420751CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/314207512026-02-19T09:00:00Z |
| spellingShingle | Rules and temptations: which came first? Elias L. Khalil (5946299) Economics Applied economics Psychology Social and personality psychology dual process theory heuristics holiday licences (cheat days) present-bias preferences principal-agent framework puritan lifestyle self-deception temerity (overconfidence) |
| status_str | publishedVersion |
| title | Rules and temptations: which came first? |
| title_full | Rules and temptations: which came first? |
| title_fullStr | Rules and temptations: which came first? |
| title_full_unstemmed | Rules and temptations: which came first? |
| title_short | Rules and temptations: which came first? |
| title_sort | Rules and temptations: which came first? |
| topic | Economics Applied economics Psychology Social and personality psychology dual process theory heuristics holiday licences (cheat days) present-bias preferences principal-agent framework puritan lifestyle self-deception temerity (overconfidence) |