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Procrastination on Long-Term Projects

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  • O'Donoghue, Ted
  • Rabin, Matthew

Abstract

We investigate naive procrastination on projects with multiple stages. In addition to classic procrastination in starting projects, naive people might undertake costly effort to begin projects but then never finish. Procrastination is more likely when the costs of completing different stages are more unequal, and it is when later stages are more costly that people start but do not finish projects. Moreover, if the cost structure is endogenous, people are prone to choose cost structures that lead them to start but not finish projects. Some extensions further illustrate how people may incur costs on projects they never complete.
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  • O'Donoghue, Ted & Rabin, Matthew, 2002. "Procrastination on Long-Term Projects," Department of Economics, Working Paper Series qt5jv059fq, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt5jv059fq
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    3. Lorko, Matej & Servátka, Maroš & Zhang, Le, 2023. "Hidden inefficiency: Strategic inflation of project schedules," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 313-326.
    4. Akin, Zafer & Yavas, Abdullah, 2023. "Elicited Time Preferences and Behavior in Long-Run Projects," MPRA Paper 117133, University Library of Munich, Germany.
    5. David Patiño & Francisco Gómez-García, 2019. "Do Quasi-Hyperbolic Preferences Explain Academic Procrastination? An Empirical Evaluation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 230(3), pages 95-124, June.
    6. Fabian Herweg & Daniel Müller, 2011. "Performance of procrastinators: on the value of deadlines," Theory and Decision, Springer, vol. 70(3), pages 329-366, March.
    7. Andor, Mark A. & Fels, Katja M. & Renz, Jan & Rzepka, Sylvi, 2018. "Do planning prompts increase educational success? Evidence from randomized controlled trials in MOOCs," Ruhr Economic Papers 790, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Akin, Zafer, 2012. "Intertemporal decision making with present biased preferences," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 30-47.
    9. Philipp Weinschenk, 2010. "Increasing Workload in a Stochastic Environment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_43, Max Planck Institute for Research on Collective Goods.
    10. Hsiao, Hsiao-Fen & Tang, Jinquan & Wen, Conghua, 2024. "Diversification's effect and manager experience on investment efficiency," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 890-900.
    11. Chollete, Lorán & Jaffee, Dwight & Mamun, Khawaja A., 2022. "Policy suggestions from a simple framework with extreme outcomes," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 374-398.
    12. Yixuan Shi, 2022. "Dynamic Volunteer's Dilemma with Procrastinators," Working Papers tax-mpg-rps-2022-17, Max Planck Institute for Tax Law and Public Finance.
    13. Melguizo Lopez, Isabel, 2016. "When to do the hard stuff? Dispositions, movitavtion and the choice of difficulties," MPRA Paper 77303, University Library of Munich, Germany.
    14. Altınok, Ahmet & Yılmaz, Murat, 2018. "Dynamic voluntary contribution to a public project under time inconsistency," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 114-140.
    15. Takeharu Sogo, 2019. "Competition among procrastinators," Theory and Decision, Springer, vol. 86(3), pages 325-337, May.
    16. Nicholls, Nicky, 2023. "Procrastination and grades: Can students be nudged towards better outcomes?," International Review of Economics Education, Elsevier, vol. 42(C).
    17. Abrardi, Laura & Cambini, Carlo, 2019. "Incentivizing self-control effort," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 13-30.
    18. Jean-Louis Denis & Geneviève Dompierre & Ann Langley & Linda Rouleau, 2011. "Escalating Indecision: Between Reification and Strategic Ambiguity," Organization Science, INFORMS, vol. 22(1), pages 225-244, February.
    19. Andor, Mark A. & Fels, Katja M., 2018. "Behavioral Economics and Energy Conservation – A Systematic Review of Non-price Interventions and Their Causal Effects," Ecological Economics, Elsevier, vol. 148(C), pages 178-210.

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    More about this item

    Keywords

    hyperbolic discounting; naivete; patial naivete; present-biased preferences; self control; sophistication; time inconsistency; Social and Behavioral Sciences;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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