Scheduling with present bias

Nicholas G. Hall and Zhixin Liu

Production and Operations Management, 2023, vol. 32, issue 6, 1743-1759

Abstract: The study of time‐inconsistent decision‐making, in particular present bias, has greatly influenced the field of behavioral economics over the last two decades. Moreover, it has resulted in the design and implementation of widely used incentive schemes for various important applications. However, the effect of present bias on decision‐making for operational problems has been studied less. This work considers the effect of present bias in a simple scheduling system that requires decisions about project timing and sequencing. We design algorithms that enable optimization of revenue less cost under present bias for both naive and sophisticated (i.e., self‐aware) decision‐makers. We describe managerial insights about the relative performance of time‐consistent, naive, and sophisticated decision‐makers, and how to mitigate the effects of present bias. Both theoretical and computational results support these insights.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/poms.13937

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:popmgt:v:32:y:2023:i:6:p:1743-1759

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1111/(ISSN)1937-5956

Access Statistics for this article

Production and Operations Management is currently edited by Kalyan Singhal

More articles in Production and Operations Management from Production and Operations Management Society
Bibliographic data for series maintained by Wiley Content Delivery ().