How soon is now? Evidence of present bias from convex time budget experiments
Uttara Balakrishnan (),
Johannes Haushofer () and
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Uttara Balakrishnan: IMPAQ International
Experimental Economics, 2020, vol. 23, issue 2, No 2, 294-321
Abstract We conduct a laboratory experiment in Kenya in which we elicit time and risk preference parameters from 494 participants, using convex time budgets and tightly controlling for transaction costs. Using the Kenyan mobile money system M-Pesa to make real-time transfers to subjects’ phones , we vary whether same-day payments are made immediately after the experimental session or at the close of the business day. We find strong evidence of present bias, with estimates of the present bias parameter ranging from 0.902 to 0.924—but only when same-day payments are made immediately after the experiment.
Keywords: Discount rate; Present bias; Experiment; Mobile money (search for similar items in EconPapers)
JEL-codes: C91 D90 O12 (search for similar items in EconPapers)
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Working Paper: How Soon Is Now? Evidence of Present Bias from Convex Time Budget Experiments (2017)
Working Paper: How Soon Is Now? Evidence of Present Bias from Convex Time Budget Experiments (2016)
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