Obesity and Hyperbolic Discounting: An Experimental Analysis

Timothy J. Richards and Stephen Hamilton

Journal of Agricultural and Resource Economics, 2012, vol. 37, issue 2, 18

Abstract: Models of rational addiction suggest that obesity is consistent with time-consistent preferences. Behavioral economists maintain that addictions such as alcoholism, smoking and over-eating represent examples of present-bias in decision making that is fundamentally irrational. In this article, conduct an experiment to test whether individual discount schedules are time-consistent and whether discount rates are higher for subjects who exhibit patterns of risky behavior. Our results show that discount functions are quasi-hyperbolic in shape, and that obesity and drinking are positively related to the discount rate. Anti-obesity policy, therefore, would be best directed to informing individuals as to the long-term implications of short-term gratification, rather than taxing foods directly

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (11)

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https://ageconsearch.umn.edu/record/134219/files/pp181-198_Richards.pdf (application/pdf)

Related works:
Working Paper: Obesity and Hyperbolic Discounting: An Experimental Analysis (2010)
Working Paper: OBESITY AND HYPERBOLIC DISCOUNTING: AN EXPERIMENTAL ANALYSIS (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:134219

DOI: 10.22004/ag.econ.134219

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