Quotation Zhang, Qing, Greiner, Ben. 2021. Time inconsistency, sophistication, and commitment: An experimental study. Economics Letters. (10998)


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Abstract

We experimentally study the relationship between time inconsistency, sophistication about time inconsistency, and self-commitment. Previous research has interpreted demand for commitment devices as evidence for the sophistication of a time-inconsistent decision-maker. In our laboratory experiment, we attempt to measure sophistication directly by way of a cognitive test. We then test the hypothesis that people who are both time-inconsistent and show high cognitive capacity take up commitment devices when offered in the strategic game between their current and their future self. For experimental laboratory commitment choices, we cannot detect a moderating effect of cognition on commitment demand of time-inconsistent subjects.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Economics Letters
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title Time inconsistency, sophistication, and commitment: An experimental study
Number 10998
Year 2021
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0165176521002597
DOI https://dx.doi.org/10.1016/j.econlet.2021.109982
Open Access N

Associations

People
Greiner, Ben (Details)
External
Zhang, Qing (Hunan University of Technology and Business, School of Finance, China)
Organization
Institute for Markets and Strategy IN (Details)
Competence Center for Experimental Research WE (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
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