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Why Do We Procrastinate? Present Bias and Optimism

Author

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  • Zachary Breig

    (School of Economics, The University of Queensland)

  • Matthew Gibson

    (Williams College)

  • Jeffrey Shrader

    (School of International and Public Affairs, Columbia University)

Abstract

A large body of research has shown that procrastination can have significant adverse effects on individuals, including lower savings and poorer health. Such procrastination is typically modeled as the result of present bias. In this paper we study an alternative: excessively optimistic beliefs about future demands on an individual’s time. Our 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

  • Zachary Breig & Matthew Gibson & Jeffrey Shrader, 2019. "Why Do We Procrastinate? Present Bias and Optimism," Department of Economics Working Papers 2019-15, Department of Economics, Williams College.
    • Handle: RePEc:wil:wileco:2019-15
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    2. 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

    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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