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Title:On the value of deadlines PDF Logo
Authors:Herweg, Fabian
Müller, Daniel
Issue Date:2008
Series/Report no.:Bonn econ discussion papers 2008,3
Abstract:Earlier work has shown that procrastination can be explained by quasihyperbolic discounting. We present a model of effort choice over time that shifts the focus away from completion to performance on a single task. We show that quasi-hyperbolic discounting is detrimental for performance. More intrestingly, we find that being aware of the own self-control problems not necessarily increases performance. Extending this framework to a multi-task model, we show that deadlines help an agent to structure his workload more efficiently, which in turn leads to better performance. Moreover, being restricted by deadlines increases a quasi-hyperbolic discounter's well-being. Thus, we give a theoretical underpinning for recent empirical evidence and numerous casual observations.
Subjects:Effort Choice
Deadlines
(Quasi-) Hyperbolic Discounting
Naiveté
Present-Biased Preferences , Sophistication
JEL:A12
D11
Document Type:Working Paper
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

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