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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 is sufficient commitment to expectation-based goals, goal-setting attenuates the time-inconsistent agent's tendency to stop too early, anddoi:10.1016/j.jet.2012.08.001 fatcat:qqfjcdqi7ndx7eh4mxfdv72d7i