Suchittra ChamnivickornPakathorn Na Pattalung2016-02-232016-02-232013b181985http://repository.nida.ac.th/handle/662723737/2909Thesis (Ph.D.(Economics))--National Institute of Development Administration, 2013.People often make everyday decisions based on their intuition. A large number of experiments in Neuroeconomics and Behavioral Economics draw this conclusion without providing explanations on the reaction-generating processes. These intuitive reactions are efficient and appropriate in many situations. However, when the issue at stake concerns immediate rewards; intuitive reactions usually lead to suboptimal results. In fact, these continued reaction patterns may breed bad habits and act as endogenous constraints to one's making an optimal choice. They can eventually cause major undesirable consequences. This paper offers a model which explains intuitive reaction processes and bridges the literature on Self-Control and Bounded Rationality. It aims to tackle the abovementioned impulsive reactions right away at the time the reactions take place, in an extremely impulsive setting. The model explains the mental supply formation steps: starting from being aware of the event in question, searching the reactions, to executing the reactions which come from either a rational or a bounded rational system. These four elements: awareness, predetermined reactions, self-control, and rational/bounded rational, form a mental supply state of an individual. While the latter two elements link the paper to the Self-Control and Bounded Rationality literature, the former two are the main highlights of this paper. In the extremely impulsive setting, awareness and predetermined reactions are scarce; hence, they underpin the mental supply sufficiency and consequently determine the reaction result. After the formation phase, the eventual reactions come from compatibilities between the controllable mental supply and the given mental demand. Finally, the conditions for these compatibilities are explored to find the optimal reaction strategies of which validity rests on the willingness and determination of people to control their mental supply. The paper suggests that, by bringing conscience and self-control into people's intuitive-reaction sphere, people's endogenous constraints can be removed and their utilities enhanced.103 leavesapplication/pdfengThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.Optimal Reaction Strategytext--thesis--doctoral thesis10.14457/NIDA.the.2013.4