Abstract: The existing literature on dual-self has focused on individual decision-making problems. We adopt the theoretical framework established by Fudenberg and Levine (American Economic Review, 2006, 96(5): 1449-1476) in 2006 to propose a new dual-self model that expands individual decision problems to multi-player strategic situations, better reflecting human interactions in reality. For the example of two-period complete-information game with multiple equilibria provided in this paper, we analyze it using our proposed dual-self model and compare the results we found with those of economic models without dual-self. Consistent with the Fudenberg-Levine axioms, our model defines a more general concept of self-control cost that takes into account multi-player interactions.

Key words: self-control, dual-self, complete information, game theory