Incentives for Procrastinators
Ted O'Donoghue and
Matthew Rabin
The Quarterly Journal of Economics, 1999, vol. 114, issue 3, 769-816
Abstract:
We examine how principals should design incentives to induce time-inconsistent procrastinating agents to complete tasks efficiently. Delay is costly to the principal, but the agent faces stochastic costs of completing the task, and efficiency requires waiting when costs are high. If the principal knows the task-cost distribution, she can always achieve first-best efficiency. If the agent has private information, the principal can induce first-best efficiency for time-consistent agents, but often cannot for procrastinators. We show that second-best optimal incentives for procrastinators typically involve an increasing punishment for delay as time passes.
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (156)
Downloads: (external link)
http://hdl.handle.net/10.1162/003355399556142 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Incentives for Procrastinators (1997) 
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:oup:qjecon:v:114:y:1999:i:3:p:769-816.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva
More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().