Temptation: Immediacy and certainty
| Autor: | Reddinger, J. Lucas |
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| Rok vydání: | 2024 |
| Předmět: | |
| Druh dokumentu: | Working Paper |
| Popis: | Is an option especially tempting when it is both immediate and certain? I test the effect of risk on the present-bias factor given quasi-hyperbolic discounting. In my experiment workers allocate about thirty to fifty minutes of real-effort tasks between two weeks. I study dynamic consistency by comparing choices made two days in advance of the workday with choices made when work is imminent. My novel design permits estimation of present bias using a decision with a consequence that is both immediate and certain. I find greater present bias when the consequence is certain. This finding has implications for any economic decision involving a present-biased decision-maker, including labor contracting and consumer good pricing. I offer a methodological remedy for experimental economists. Comment: The manuscript includes 26 pages with 2 tables and 3 figures; the supplement includes 20 pages with 5 tables and 15 figures. This revision makes minor changes to notation for clarity |
| Databáze: | arXiv |
| Externí odkaz: |
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