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Why Do We Procrastinate? Present Bias and Optimism

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  • Breig, Zachary

    (University of Queensland)

  • Gibson, Matthew

    (Williams College)

  • Shrader, Jeffrey G.

    (Columbia University)

Abstract

Research has shown that procrastination has signicant adverse effects on individuals, including lower savings and poorer health. Procrastination is typically modeled as resulting from present bias. In this paper we study an alternative: excessively optimistic beliefs about future demands on an individual's time. The models can be distinguished by how individuals respond to information on their past choices. Experimental results refute the hypothesis that present bias is the sole source of dynamic inconsistency, but they are consistent with optimism. These findings offer an explanation for low takeup of commitment and suggest that personalized information on past choices can mitigate procrastination.

Suggested Citation

  • Breig, Zachary & Gibson, Matthew & Shrader, Jeffrey G., 2020. "Why Do We Procrastinate? Present Bias and Optimism," IZA Discussion Papers 13060, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13060
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    Cited by:

    1. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav, 2021. "Can time-inconsistent preferences explain hypothetical biases?," Economics of Transportation, Elsevier, vol. 25(C).

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    More about this item

    Keywords

    real effort; beliefs; dynamic inconsistency; discounting;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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