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I am getting tired: Effort and fatigue in intertemporal decision-making

  • Dragone, Davide

Evidence on effort-demanding tasks suggests that exerting effort is fatiguing and that the accumulation of fatigue negatively affects the performance on both simultaneous and sequential tasks. This paper introduces the notion of fatigue by assuming that a worker has a limited amount of renewable resources that are depleted when effort is exerted. As multiple equilibria and thresholds can emerge, the optimal intertemporal allocation of effort depends both on the fatigue accumulated by the worker and on the wage rate chosen by the firm. A principal should take this into account, because choosing a wage rate that equals the marginal product value is, in general, suboptimal. This holds even if the worker is expected to exert constant effort over time.

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File URL: http://www.sciencedirect.com/science/article/B6V8H-4W2D1NT-1/2/bdb5d7026bcbf9c41f8511bcc30099e8
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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 30 (2009)
Issue (Month): 4 (August)
Pages: 552-562

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Handle: RePEc:eee:joepsy:v:30:y:2009:i:4:p:552-562
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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  1. Domenico J. Marchetti & Francesco Nucci, 2001. "Labor effort over the business cycle," Temi di discussione (Economic working papers) 424, Bank of Italy, Economic Research and International Relations Area.
  2. Wirl, Franz, 2004. "Thresholds in concave renewable resource models," Ecological Economics, Elsevier, vol. 48(2), pages 259-267, February.
  3. Antonio García Sánchez & María del Mar Vázquez Méndez, 2005. "The timing of work in a general equilibrium model with shiftwork," Investigaciones Economicas, Fundación SEPI, vol. 29(1), pages 149-179, January.
  4. Emre Ozdenoren & Stephen Salant & Dan Silverman, 2006. "Willpower and the Optimal Control of Visceral Urges," Economics Working Papers 0069, Institute for Advanced Study, School of Social Science.
  5. R. Cellini & L. Lambertini, 2005. "Weak and Strong Time Consistency in Differential Oligopoly Games with Capital Accumulation," Working Papers 544, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
  7. Gabaix, Xavier & Laibson, David Isaac & Moloche, Guillermo & Stephen, Weinberg, 2003. "The allocation of attention: theory and evidence," MPRA Paper 47339, University Library of Munich, Germany.
  8. repec:cup:cbooks:9780521637329 is not listed on IDEAS
  9. Loewenstein, George & O'Donoghue, Ted, 2004. "Animal Spirits: Affective and Deliberative Processes in Economic Behavior," Working Papers 04-14, Cornell University, Center for Analytic Economics.
  10. Shiv, Baba & Fedorikhin, Alexander, 1999. " Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making," Journal of Consumer Research, University of Chicago Press, vol. 26(3), pages 278-92, December.
  11. Nocetti, Diego, 2008. "Industrial fatigue Redux," Economics Letters, Elsevier, vol. 99(2), pages 286-289, May.
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