Karagözoǧlu, E.2016-02-082016-02-0820141937-321Xhttp://hdl.handle.net/11693/26554This article establishes an economic framework to identify the conditions under which an optimizing agent may seek (or not seek) to engage in costly dissonance reduction. We set up a dynamic model of decision-making in which the individual's mind is composed of a coordinating principal and 2 conflicting agents. We take into account the cognitive dissonance experienced as a result of the conflict between the agents. Each agent (or self) is specialized in perceiving a particular type of signal and performing a task. Dissonance levels in our model are not constant. Instead, the individual's splitselves are open to habituation, which can lead to a reduction in cognitive dissonance. Therefore, motivated habituation appears as a way to avoid dissonance. We prove the existence of an optimal strategy with a threshold structure. Our results show that the existence of intrapersonal conflict may be a long run phenomenon even in an optimizing mind.EnglishAction-based theoryCognitive dissonanceHabituationMind hierarchyModularity of mindStochastic dynamic programmingStroop testArticle10.1037/npe0000017