Arbeitspapier

Time discounting: The delay effect and procrastinating behavior

The delay effect, that people discount the near future more than the distant future, has not been verified rigorously. An experiment conducted by us in China confirms that, by separating the delay from the interval, the delay effect exists only within a short delay. The results are reliable, because the rewards paid were very large, in order to elicit the subjects' true preferences. The interval and magnitude effects are also confirmed. Finally, subjects' procrastinating behavior, as reported in the questionnaire conducted at the end of the experiment, is explained by the time discount rates and the degree of the delay effect revealed in the experiment.

Language
Englisch

Bibliographic citation
Series: ISER Discussion Paper ; No. 726

Classification
Wirtschaft
Design of Experiments: Laboratory, Individual
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Subject
discount rate
economic experiment in China
delay effect
naïfs and sophisticates
procrastination

Event
Geistige Schöpfung
(who)
Sasaki, Shunichiro
Xie, Shiyu
Ikeda, Shinsuke
Qin, Jie
Tsutsui, Yoshiro
Event
Veröffentlichung
(who)
Osaka University, Institute of Social and Economic Research (ISER)
(where)
Osaka
(when)
2008

Handle
Last update
04.03.2025, 3:21 PM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Sasaki, Shunichiro
  • Xie, Shiyu
  • Ikeda, Shinsuke
  • Qin, Jie
  • Tsutsui, Yoshiro
  • Osaka University, Institute of Social and Economic Research (ISER)

Time of origin

  • 2008

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