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Charlie Sprenger - April 11, 2014 (1:30-2:45 PM)

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Working Over Time: Dynamic Inconsistency in Real Effort Tasks 

Ned Augenblick 
UC Berkeley, Haas School of Business

Muriel Niederlez
Stanford University and NBER

Charles Sprenger
Stanford University

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 paper, 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 con.rm 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.

We had a great turnout with 24 people in attendance.  
Below are a few pictures from the event:

Apr 1, 2014, 4:46 PM
Apr 1, 2014, 4:46 PM