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How soon is now? Evidence of present bias from convex time budget experiments

Uttara Balakrishnan (), Johannes Haushofer () and Pamela Jakiela
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Uttara Balakrishnan: IMPAQ International

Experimental Economics, 2020, vol. 23, issue 2, No 2, 294-321

Abstract: 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)
Date: 2020
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Related works:
Working Paper: How Soon Is Now? Evidence of Present Bias from Convex Time Budget Experiments (2017) Downloads
Working Paper: How Soon Is Now? Evidence of Present Bias from Convex Time Budget Experiments (2016) Downloads
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DOI: 10.1007/s10683-019-09617-y

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