Working over Time: Dynamic Inconsistency in Real Effort Tasks
Abstract
Experimental tests of dynamically inconsistent time preferences have largely relied on choices over time-dated monetary rewards. Several recent studies have failed to find the standard patterns of present bias. However, such monetary studies contain often-discussed confounds. In this article, we sidestep these confounds and investigate choices over consumption (real effort) in a longitudinal experiment. We pair this effort study with a companion monetary discounting study. We confirm very limited time inconsistency in monetary choices. However, subjects show considerably more present bias in effort. Furthermore, present bias in the allocation of work has predictive power for demand of a meaningfully binding commitment device. Therefore our findings validate a key implication of models of dynamic inconsistency, with corresponding policy implications.
Additional Information
© 2015 The Author(s). Published by Oxford University Press, on behalf of President and Fellows of Harvard College. Published: 06 May 2015. We are grateful for many helpful discussions, including those of Steffen Andersen, James Andreoni, Colin Camerer, Yoram Halevy, David Laibson, Matthew Rabin, and Georg Weizsäcker. We thank Wei Wu for helpful research assistance and technological expertise.Attached Files
Supplemental Material - qjv020_supplementary_data.zip
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Additional details
- Eprint ID
- 104521
- DOI
- 10.1093/qje/qjv020
- Resolver ID
- CaltechAUTHORS:20200722-152510815
- Created
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2020-07-22Created from EPrint's datestamp field
- Updated
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2021-11-16Created from EPrint's last_modified field