Present Bias and Everyday Self-Control Failures

Citation

Delaney L & Lades L (2015) Present Bias and Everyday Self-Control Failures. Stirling Economics Discussion Paper, 2015-01.

Abstract
Present bias is the economist’s favorite explanation for self-control problems. However, the relationship between present bias and selfcontrol is not yet fully understood. We present the T-SC model of intertemporal choice which integrates main psychological insights on selfcontrol into economics and suggests that present bias is positively related to temptations T and negatively related to self-control SC. To test the model we elicit time preferences using an incentivized delay discounting task, trait temptation and trait self-control using scale measures, and everyday temptations, self-control attempts, and self-control failures using a day reconstruction methodology. In a sample of 142 participants we find that experimentally elicited present bias is not associated with self-control problems, neither when measured on the trait level nor in everyday life. The results are in line with a clear distinction between discounting and visceral influences as determinants of decision making. The results can also explain why recent studies find only weak empirical associations between present bias elicited in monetary delay discounting tasks and life outcomes in non-monetary domains.

Keywords
self-control; inter-temporal choice; present bias; elicitation of time preferences; day reconstruction method

JEL codes

• D03: Behavioral Microeconomics: Underlying Principles
• D91: Intertemporal Household Choice; Life Cycle Models and Saving

• SEDP-2015-01-Delaney-Lades.pdf