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Firms often set long notice periods when consumers cancel a contract, and sometimes do so even when the costs of changing or canceling the contract are small. We investigate a model in which a firm offers a contract to consumers who may procrastinate canceling it due to naive present-bias. We...
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), the procrastination of learning can occur even when the learning cost is zero. The procrastination also leads to a non …
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Recent studies investigate policies motivating consumers to make an active choice as a way to protect unsophisticated consumers. We analyze the optimal timing of such choice-enhancing policies when a firm can strategically react to them. In our model, a firm provides a contract with automatic...
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Traditionally, economic models have attributed procrastination to present bias. However, procrastination may also arise … to complete. This study provides a rigorous empirical test for this notion of `motivated procrastination'. In a … (motivated procrastination) turns out to be robust to accounting for decision-makers' time preferences and emotional responses …
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