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, quasi-hyperbolic discounting as well as subjective failure probability over future payments. We investigate the predictive …
Persistent link: https://www.econbiz.de/10011580855
Research has shown that procrastination has signicant adverse effects on individuals, including lower savings and poorer health. Procrastination is typically modeled as resulting from present bias. In this paper we study an alternative: excessively optimistic beliefs about future demands on an...
Persistent link: https://www.econbiz.de/10012193799
This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its …
Persistent link: https://www.econbiz.de/10012160910
What do markets for voluntary climate protection imply about people's valuations of en- vironmental protection? I study this question in a large-scale field experiment (N=255,000) with a delivery service, where customers are offered carbon offsets that compensate for emissions. To estimate...
Persistent link: https://www.econbiz.de/10013545793
. This paper reviews the theory and evidence surrounding forest-related Payment for Ecosystem Services (PES) schemes intended …
Persistent link: https://www.econbiz.de/10010356967
offender's time discounting. We exploit quasi-experimental variation in sentence length generated by a large collective pardon … in Italy and provide non-parametric evidence on the extent of discounting from the raw data on recidivism and sentence …
Persistent link: https://www.econbiz.de/10011453421
Discounting Model of choice over time. Attention has focused on some specific 'anomalies', notably preference reversal and … declining discount rates, leading to the formulation of the model of hyperbolic discounting which is finding increasing favour … they are really the most challenging ones for conventional theory. New developments are emerging both at the theoretical …
Persistent link: https://www.econbiz.de/10003637694
Because of Time Inconsistency considerations, policymakers underestimate the drawbacks of wage rigidity as a redistributive tool. Consequently, they redistribute inefficiently income from high to low skilled workers. They typically implement too much wage rigidity whereas other means (in...
Persistent link: https://www.econbiz.de/10003316484
Goals are an important source of motivation. But little is known about why and how people set them. We address these questions in a model based on two stylized facts from psychology and behavioral economics: i) Goals serve as reference points for performance. ii) Present-biased preferences...
Persistent link: https://www.econbiz.de/10003793362
It is a puzzle why people often evaluate consequences of choices separately (narrow bracketing) rather than jointly (broad bracketing). We study the hypothesis that a present-biased individual, who faces two tasks, may bracket his goals narrowly for motivational reasons. Goals motivate because...
Persistent link: https://www.econbiz.de/10003902431