Arbeitspapier
Inconsistent time preferences and on-the-job search - when it pays to be naive
We study optimal employment contracts for present-biased employees who can conduct on-the-job search. Presuming that firms cannot offer long-term contracts, we find that individuals who are naive about their present bias will actually be better off than sophisticated or time-consistent individuals. Moreover, they search more, which partially counteracts the inefficiencies caused by their present bias.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 7604
- Classification
-
Wirtschaft
Firm Behavior: Theory
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Micro-Based Behavioral Economics: General‡
Wage Level and Structure; Wage Differentials
Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- Subject
-
present bias
on-the-job search
- Event
-
Geistige Schöpfung
- (who)
-
Fahn, Matthias
Seibel, Regina
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fahn, Matthias
- Seibel, Regina
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2019
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Never mind the hyperbolics: Nonparametric analysis of time-inconsistent preferences
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Rethinking inconsistent mathematics
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