Behavioral economic studies demonstrate that rewards are discounted proportionally with their delay (hyperbolic discounting). Hyperbolic discounting implies temporary preference for smaller rewards when they are imminent, and this concept has been widely considered by researchers interested in the causes of addictive behavior. Far less consideration has been given to the fact that systematic preference reversal also predicts various self-control phenomena, which may also be analyzed from a behavioral economic perspective.Here we summarize self-control phenomena predicted by hyperbolic discounting, particularly with application to the field of addiction. Of greatest interest is the phenomenon of choice bundling, an increase in motivation to wait for delayed rewards that can be expected to result from making choices in whole categories. Specifically, when a person's expectations about her own future behavior are conditional upon her current behavior, the value of these expectations is added to the contingencies for the current behavior, resulting in reduced impulsivity. Hyperbolic discounting provides a bottomup basis for the intuitive learning of choice bundling, the properties of which match common descriptions of willpower. We suggest that the bundling effect can also be discerned in the advice of 12-step programs.Recovery from addiction is a distinctly human phenomenon (Logan, 1993), can be extraordinarily abrupt without any obvious changes in contingencies (Premack, 1970, Miller andC'de Baca, 2001), and is commonly described in spiritual terms (Bien and Bien, 2002). Thus it may seem that although behavioral economic and other reductionist approaches are productively applied to the onset of addiction, they are not applicable to studying recovery from addiction (for example, see Miller's 2003 discussion of his skepticism). Here we want to make the case that behavioral economics sheds new light on recovery from addiction.Address correspondence to either: John Monterosso, PhD, Department of Psychiatry, University of California at Los Angeles, 760 Westwood Plaza; Rm C8-532, Los Angeles, CA 90024, Phone: (310) 794-1736, email: jmont@ucla.edu, George Ainslie, M.D., Department of Psychiatry, Coatesville VA Medical Center, Coatesville, PA 19320, Phone (610) 384-7711, Email: george.ainslie@va.gov. With reference to formulas 1 and 2, consider the following example. If Rate is .5 and Amount is 10 the exponential value at Delays =1, 2, 3, 4, 5, 6 will be 5, 2.5, 1.25, .625, .3125, .15625; the hyperbolic value at those Delays will be 5, 3.33, 2.5, 2., 1.67, 1.43. If a subject repeatedly is presented with an alternative reward of 4, two units of Delay before each 10 is due, the 4 will win under both formulae: 4 vs. 2.5 for exponential, 4 vs. 3.33 for hyperbolic. But if these options occur three times, two units apart, and must be chosen as a category all at once, exponential â [2.5 + .