Economics Research Seminarhttps://weatherhead.case.edu/events/2015/03/20/economics-research-seminarExperimental 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 paper, we sidestep these confounds and investigate choices over consumption (real e ort) in a longitudinal experiment. We pair this eff ort study with a companion monetary discounting study. We confi rm very limited time inconsistency in monetary choices. However, subjects show considerably more present bias in e ffort. 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.
Please join the Economics Department for a research seminar. This event is open to all Case Western Reserve University faculty, Ph.D. students, economic majors and minors, and those interested in economics research.
Contact Information:
Teresa Kabat
teresa.kabat@case.edu
216.368.4110
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